June 13, 2024
By Anjali Kochhar
Blockchain technology, which is commonly connected with cryptocurrencies, is proving to be much more than just a tool for digital banking. Its revolutionary potential is now being used to address a variety of social and humanitarian issues around the world. Blockchain is making considerable progress in improving transparency, security, and efficiency in a variety of applications, including identity management, voting systems, and philanthropic endeavours.
One of the critical areas where blockchain technology is making a substantial impact is in identity management. For marginalised populations, secure and verifiable identities are often elusive, leading to a myriad of problems, including lack of access to essential services. Blockchain’s decentralised nature ensures that identities are not only secure but also easily verifiable, providing a robust solution to this pressing issue.
Mr. Edul Patel, CEO of Mudrex, highlights the transformative potential of blockchain in this area: “Blockchain technology holds transformative potential for addressing social challenges. It enhances identity management, ensuring secure, verifiable identities for marginalised populations.”
A prime example of this is the ID2020 project. This initiative aims to provide digital identity solutions to refugees and stateless individuals, who are often excluded from the benefits of formal identification. By using blockchain, ID2020 ensures that these identities are tamper-proof and easily verifiable, thus fostering empowerment and restoring dignity to those affected.
Another area where blockchain technology is making a difference is in voting systems. Traditional voting methods are often plagued by issues such as tampering, fraud, and lack of transparency. Blockchain’s immutable ledger provides a solution to these problems, ensuring that votes are recorded transparently and securely, thereby fostering trust in democratic processes.
Rajagopal Menon, Vice President of WazirX, emphasises the role of blockchain in enhancing voting systems: “Blockchain can enhance voting systems, ensure fair elections, and provide secure identity management. Leveraging blockchain’s transparency and security can drive significant social change globally.”
Several countries and states are already experimenting with blockchain-based voting systems. For instance, Indian states like Telangana, Karnataka, and Uttar Pradesh are implementing blockchain for property registration, government services, and public grievances. These initiatives not only improve the efficiency of these systems but also ensure that the data remains secure and tamper-proof.
Philanthropy is another area where blockchain technology is proving to be a game-changer. Traditional philanthropic initiatives often face challenges related to transparency and traceability of funds. Blockchain’s inherent transparency ensures that donations are tracked in real-time, providing donors with confidence that their contributions are reaching the intended recipients.
Mr. Edul Patel elaborates on this aspect: “Philanthropic initiatives can benefit from blockchain’s traceability, ensuring funds reach intended recipients. Projects like the World Food Programme’s Building Blocks initiative are already pioneering blockchain-based solutions to enhance the efficiency of aid distribution.”
The World Food Programme’s Building Blocks initiative, for example, uses blockchain technology to streamline the distribution of food aid to refugees. By creating a secure and transparent ledger, this initiative ensures that food assistance is delivered efficiently and that fraud is minimised. The success of such projects demonstrates the potential of blockchain to enhance the effectiveness of humanitarian efforts.
The potential for blockchain to address social and humanitarian challenges is immense, but to fully realise this potential, collaboration and scalability are crucial. By working together, governments, private organisations, and non-profits can amplify the positive impact of blockchain technology.
Rajagopal Menon notes the importance of collaboration: “Nonprofits can use blockchain to track investments, boosting donor trust and support for social services. Indian states and private companies adopting blockchain for various services illustrate its versatility and potential for driving social change.”
Private companies like ICICI Bank and Infosys in India are also adopting blockchain technology to improve various services. ICICI Bank, for example, uses blockchain to enhance its trade finance and remittance services, ensuring faster and more secure transactions. Infosys is leveraging blockchain to streamline supply chain processes, ensuring transparency and efficiency.
The combined efforts of these businesses not only demonstrate the versatility of blockchain, but also its scalability. As more organisations use blockchain, its positive societal impact is expected to grow dramatically.
The journey of blockchain technology in addressing social and humanitarian challenges is just beginning. As more projects and organisations leverage its potential, the opportunities for positive social impact will continue to grow.
Edul Patel is optimistic about the future: “Opportunities for collaboration and scalability can further amplify blockchain’s positive social impact in the years to come.”
Finally, blockchain technology has the potential to revolutionise a wide range of social and humanitarian challenges. Blockchain is empowering communities all around the world by enhancing identity management, transforming voting procedures, and ensuring transparency in charity endeavours. Blockchain has a positive impact by promoting collaboration and scalability that can be greatly enhanced, resulting in tremendous societal transformation and a brighter future for all.
As the technology evolves, stakeholders must remain engaged and collaborative to ensure that the benefits of blockchain are available to everyone. Blockchain has enormous potential to create a more transparent, safe, and equitable world, and with sustained innovation and cooperation, it will be fully realised.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over three years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
