How Blockchain Technology is going to change the face and form of NGOs

By October 30, 2018LaLa World
Blockchain technology

The popularity and implementation of Blockchain technology have been growing over the past few years, ever since its inception in 1991. It has been widely popular in financial services through increasing demand of cryptocurrencies such as Ripple, Bitcoin, Ether, etc. With the range of possibilities in this technology, it can change the functioning and face of industries as diverse as health care, supply chain management, music rights and even NGOs. Blockchain can help promote human rights, cause a paradigm shift in the society and could even possibly, save the world!

What are the Challenges faced by NGOs and how can Blockchain Technology resolve it?

Allocation of Funds

Funds are remitted from different sources and allocated to different departments based on their needs. They are managed either manually without a standardized process or with the help of an ERP. This sometimes causes mismanagement in allocations of funds because of human error involved, deliberately or not.

By developing an NGO ecosystem through Blockchain technology, every transaction is immutable and accountable to the participants. Every input of this Blockchain is entered only after the approval of members (consensus) and any rift can be easily identified.


Every contributor always worries about whether their donations are in the right hands and reach the neediest.

Blockchain created specifically for NGOs ensures that the data is transparent and secure. Every single penny coming into the system is recorded with a timestamp and allocated to a cause after approval through veto. Every contributor has a clear understanding of where their donations are being used.

Identity Issues of Inmates

People who enter refugee camps run by the NGOs are issued identity documentation, but these new identities are not really able to be extended once people leave. Blockchain technology’s distributed nature can be a good fit for immigrants who don’t have a country to go back.

By helping NGOs implement Blockchain technology to create these IDs, the inmates from these refugee camps can apply for loans, make and receive payments, track spending and ultimately start a new life.

NGOs have begun using the Blockchain technology to record and function. The International Scientific and Practical Association Jus Naturale became the first non-profit organization to introduce a decentralized membership system, based on Blockchain technology. All transactions were made through Bitcoins, to ensure the usage of fundings in the right direction. The World Food Programme has used Ethereum to deliver food vouchers. A recent UNICEF project tried to recruit supporters to mine Ethereum for them to raise profit, resulting in the creation of over €9,000 in just one month. More and more NGOs are adopting this disruptive technology to streamline their functionality, and a trustless & transparent ecosystem to aid the underprivileged doesn’t seem too far.

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