Web3 Use Case - Charities
You have money and want to use it to make the world a better place. Giving money to a charity seems like a good idea. They have people that have dedicated their lives to helping others. Giving money to a charity will help more people than using your money to help people directly.
But is that money being used to help people in need? Is that money being used effectively, where the services the charity provides are helping people?
The first part, the money used to help the people in need, is the part web3, and blockchain can bring some transparency. The second part, the funds used effectively to help people, is a little tougher to solve and won’t be addressed in this article (or pod).
The blockchain can be used as a public ledger to track the money donated to the charity and where that money is getting spent.
The benefits of the blockchain are that it is public, and any transaction that gets recorded on the blockchain can’t be deleted or edited.
- So imagine if someone wanted to donate money to a charity that helps pay for a family’s energy bills.
- There is a charity that only accepts cryptocurrencies as their donation, and that donation will be recorded on the blockchain.
- The family sends the cryptocurrency to the charity, which is recorded on the blockchain.
- The charity finds an eligible family that needs assistance with their energy bill.
- The charity gets the family account number of the energy company that provides energy to that family.
- The charity works with the energy company to help it accept cryptocurrency.
- The charity sends the money to the energy company to pay for a family’s (or multiple families') energy bill. This transaction gets recorded on the blockchain along with the families’ account numbers.
- The charity takes a percentage of the money donated to pay for its administration.
- The person who donated the money can look up online where the money went and see how much was used to pay for the families’ energy bills and how much was used for the charity’s administration.