Can Web3 be a game changer for Philanthropy?

Mr. Pratik chadhokar is an Indian Forex, Cryptocurrencies and Financial Market Advisor and analyst with a background in IT and Financial market Strategist. He specialises in market strategies and technical analysis and has spent over a year as a financial markets contributor and observer. He possesses strong technical analytical skills and is well known for his entertaining and informative analysis of the Financial markets.

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Philanthropic activities worldwide have often been associated with lost funds, delays, and fraudulent activities. Transparency and efficiency of philanthropic activities are the core issues that need desperate attention. 

This article will explore a few platforms that desire to use technology and change the status quo of philanthropy. They aim to usher in an era of transparent donations, efficient deliveries, and check fraudsters.

Core Issues in Philanthropy

Many issues have surrounded philanthropy throughout its modern existence. Lost and stolen funds are the most disturbing aspects of traditional philanthropy. Simon Price, CEO of a former charity home for animals, stole almost $1 million from a charity. 

Another core issue is the late arrival of funds when they are needed. In the well-known Twin Parks fire incident in New York, only $1.65 million was distributed among residents out of $4.58 million. Most of the funds are stuck due to several reasons. 

Further, many communities from economically weaker backgrounds need not just money, but some kind of empowerment to be able to fend for themselves. They need people to invest a little time and effort to help them learn things that can generate some income.

The Internet has been mostly untouched by philanthropy, but it is essential for making communities strong and self-sufficient. Across the world, the internet is getting more and more expensive. State of Broadband Report 2021 lists a story from Phillippines where a woman had to choose between food and the internet for her children’s education.

How can Web3 solve these problems?

Web3 can solve many issues that plague the world of philanthropy such as donation slippages, fraud, delays in the arrival of funds, etc.

Stopping Fraud and  Donation Slippages

Blockchain Technology is based on distributed ledger technology and immutable records. Once a transaction is added to a blockchain, it cannot be manipulated by a rogue element, hacker, or scammer. Several cryptocurrencies are working for the betterment of underprivileged communities. 

Ripple is working with Latin American countries to create digitized land records to prevent land theft. It is important to note that the poor are the most affected by property theft by organized criminals.

For philanthropy purposes, it can accurately show how funds were collected and how funds were distributed. Further, through cryptocurrencies funds can arrive almost instantly. Traditional forms of fund transfers often take several hours or even days. For example, PayPal needs almost 2 days for international fund transfers while cryptocurrencies do it in a few seconds. In contrast, Philcoin takes seconds to do an international donation. It is the world’s first cryptocurrency dedicated to charity. They also have a program where they teach how crypto can help them achieve better financial security.

Helping Communities Earn via Crypto

An interesting way blockchain and cryptocurrency can help communities is through several earn features like share and earn, play and earn, walk and earn, etc. Activities like playing games online or making purchases can generate cryptocurrencies which can be donated to charity. 

In Phillippines, many people earned a decent income from Axie Infinity during the pandemic. These funds were essential for their survival.

In many platforms, even donors can generate income for themselves while doing philanthropic activities. PHILApp, a decentralized application is one of them.

Work for Communities

Not all philanthropic activities need you to donate money. There are many crypto and DeFi-based platforms where you can work for the betterment of communities in your free time. Activities like Teaching, Skill Training, Mentoring, etc can also make communities strong enough to earn their own income. 

PHILApp is one such application where you can interact with the app to generate funds for yourselves as well as donate. You can donate to earn NFTs which will accrue value based on their rarity. You can also do daily activities like chatting, playing games, donating to charities, learning new skills, and more, to generate a crypto income for you and others.

Conclusion

Web3 has a lot of potential in solving challenges for philanthropy. Decentralized ledgers make transactions happen more transparently. They also help stop fraud and slippages. Further, several apps allow you to work for communities even if you cannot donate by helping them become self-sufficient. There are also applications that have dual benefits for both the donors and receivers. Finally, it can be said that this is just the beginning of a massive innovation that will change the face of charity forever.