How Blockchain is changing corporate giving

Website design By BotEap.comBlockchain refers to a public accounting technology in which each cryptocurrency transaction is digitally signed to confirm its originality and ensure that the information contained in it is not altered. As such, the operations recorded on the blockchain and the ledger itself are considered to be of the highest level of integrity.

Website design By BotEap.comIn the early days of cryptocurrency, people thought that blockchain was all about bitcoin. Today, it is becoming increasingly apparent that technology is more than just bitcoin, or digital currencies for that matter. But while blockchain has the potential to revolutionize almost every industry, nowhere will its impact be more pronounced than in charitable giving.

Website design By BotEap.comFor charities, blockchain presents a rare window for transparency and honesty, which could help make them more trustworthy in the eyes of backers. Some of the issues facing nonprofits include a lack of accountability for how money is spent and transparency. Donors are sometimes reluctant to donate because they cannot be sure where their funds are going or who they are helping with their donation. Over time, these concerns can cause them to become disappointed.

Website design By BotEap.comThis makes it difficult for charities to attract or retain sponsors. However, blockchain is rapidly increasing trust in the system by showing philanthropists where their money is going. Technology achieves this by making the system fully transparent and information easily accessible. Here’s how blockchain improves transparency and trust in charities:

• Website design By BotEap.comThe funds go directly to the cause to which donors contribute. Thanks to blockchain technology, donations no longer need to go through intermediaries. Instead, they go directly to the recipients and companies that are in a position to help them. This help ensures that there is less room for fraud or financial leakage in the system and that money does not go into the wrong pockets. The result is that donors are more encouraged to donate.
• Website design By BotEap.comAll transactions are traceable. Distributed ledgers can be used to keep track of transactions. This improved traceability makes it easy to track how funds are being spent. As a result, donors can see, even from a distance, how their funds ended up helping the people charities claim to help.
• Website design By BotEap.comBlockchain makes it easier to distinguish well-meaning organizations from fraudulent ones. Since donations made using cryptocurrencies can be tracked, it is easier for donors to identify organizations that advance their cause than those that only seek to enrich a few people. This way, they know the right charities to work with.

Website design By BotEap.comIn general, blockchain and cryptocurrencies will help ensure efficiency and give backers confidence that their donation is going to the cause they support.

Website design By BotEap.comWell-meaning organizations must embrace the technology if they plan to improve transparency, as well as track and transfer funds quickly. It is for all these reasons that platforms like Sponsy seek to help companies offer greater transparency and trust through blockchain technology.