Blockchain is a ledger system tracking digital information and, among other advantages, it can provide digitised contracts to avoid fraudulent land records, or enable faster and safer money transfers to emergency hot spots around the globe by using cryptocurrencies.
A report published by the Danish Foreign Ministry yesterday, in collaboration with think tank Sustania and blockchain currency platform Coinify, investigates how blockchain technology might solve problems in providing development aid.
“Crypto and crisis is a perfect match, and aid organisations will undeniably be able to respond more quickly using blockchain-based digital money, which arrives at e-mail speed, safely and transparently,” said Marianne Haahr of Sustania.
Blockchain is still relatively immature and it might take time to develop trust, but some concrete initiatives are being developed. One of Europe’s biggest virtual currency platforms, Coinify, is working on using cryptocurrency payments to scale off-grid renewable energy.
An option could be an online hub where people would donate to single projects like schools, railways or bridges.