Disburse Uses Blockchain to Validate and Confirm Donations
The Start Network through its humanitarian platform, Disburse, has reportedly began researching Blockchain-based models to help in delivery and distribution of humanitarian funds.
The program is consisted of 42 national and international aid agencies whose main goal is to ensure that the funds speedily reach their beneficiaries.
In addition, Disburse will play a monitoring role to ensure that all the transactions based on blockchain technology can be verified.
Disburse has now piloted for six months and the amount they have recovered is enough to pay annual school fees for 3 students.
Ordinarily, banks charge transaction fees that usually eat up a considerable chunk of the donation, but blockchain technology has a way of bypassing transaction costs such as FOREX fee.
Lack of proper infrastructural networks in most areas that need humanitarian aid makes the exchange rate volatile, thus causing high cost of remittance for most traditional banks.
Through Blockchain technology, the organization is now able to validate donations without having to shoulder hefty bank processing fees.
Disburse is a member of ConsenSys’ Blockchain for Social Impact Coalition and was founded with an ambition to improve the impact of aid funds. Blockchain technology digitizes and distributes aid funds in form of chains to the intended beneficiaries.
If Blockchain technology is used properly, it can eliminate corruption that in the past has been associated with aid funds. This is because the process leaves online transaction records for both the beneficiaries and the donor thus promoting transparency in the industry.
Disburse has an intention of scaling up its services in order to satisfy greater humanitarian aid needs. This will happen after the successful 6 months of piloting. The technology is surely set to revolutionize the donor industry as it guarantees transparency and efficiency in future.