Crackdown Finally Coming on Corrupt Charities
Several individuals want to make the world a better place by donating to their charity of choice, but many are left with the unsettling question of how their money is actually being spent. Corruption is prevalent amongst charities. Higher-ups at big charities often choose to line their own pockets, instead of appropriately using those funds for their intended purpose. Non-profits’ current operational structure lacks overall transparency. Ultimately, donors doubt the intentions of the supposed non-profit.
Blockchain technology could prove to be a game-changer, addressing the many questions that surround today’s non-profits. A new model is emerging for charities, which deals with the inflow and outflow of large amounts of money. On top of that, current accounting methods struggle to keep up with this exchange in capital. Last year, organizations based in the United States took in $2 trillion in revenue. Less than 20% of that, however, came in the form on charitable contributions. People have made fewer donations, as a result of this. Many choose not to donate at all. (Check out what a blockchain is here!)
UN Uses Blockchain for Humanitarian Aid
Despite the fact that the world produces enough food to feed the entire population, millions of people still go hungry. Because of the way food is currently distributed, “food rich” areas–or those with an abundance of food–exist, while other places experience severe famine and starvation. The United Nations (UN) is looking to address this extreme inequality, by implementing the use of blockchain.
Blockchain technology has the potential to create a whole new, reliable, secure environment for providing humanitarian aid. Non-profits often advertise themselves as such. However, a significant portion of donations still go to overhead, office costs, and officers running these charities. With blockchain technology, those who donate are able to view exactly how their funds spent, and who directly is benefiting from the provided aid.
Cybersecurity Upgrades Lie In Blockchain
Blockchain has a plethora of benefits in the world of cybersecurity. Thanks to the use a peer-to-peer network (P2P), information is inherently more secure than on a centralized network. To give you a quick idea, a centralized network is a platform in which all information passes through a single point. A decentralized or P2P network requires data to pass through multiple points. So, a centralized network can easily collect data because everything goes to one place.
Lockheed Martin has capitalized on the concept of decentralization to up their cybersecurity. Cybersecurity is specifically the security of information associated with networks, platforms or the Internet. The well-known security and aerospace company chose to implement blockchain, in order to address the real issues with centralized security. They’re the first US Defense contractor to make a move towards the execution and use of the technology. Lockheed Martin specifically paired with Guardtime Federal, the leading blockchain cybersecurity company in the industry.
Government and Bitcoin Understanding: A Constant Battle
Government and Bitcoin are head-butting in a few places around the world. Belgium is just one of the many governments around the world that struggles to understand Bitcoin. So, it comes as no surprise the Minister of Justice is in cahoots over the potential use of cryptocurrency in the country. He is currently attempting to collect all currently circulating currency. Unfortunately what he and others fail to realize, is the fact that you can’t just force people to hand over their cryptocurrency. Whoever has possession of the key to a wallet has access to it. So, why would someone just willingly hand that over? Learn more about hardware wallets here.
Because Government exists in such a way that it desires control, Bitcoin and other cryptocurrencies inherently are “bad”. Now, this “bad” stigma really only stems from the fact that users are not required to go through a centralized point to transmit data in the system. Centralized platforms require just this, and is the reason why government entities love them! They make combing through data for more manageable and simplified.
Decentralized Storage Is Key to Data Protection
A massive gap in security exists when storing data on centralized platforms. How many times have you heard about a company getting hacked? What about the huge hack that happened to Target a few Thanksgivings ago? Hacking is a real, prevalent issue in the world of centralized systems.
Blockchain technology, of course, provides an awesome alternative to the broken system of centralization. Because it exists on a decentralized platform, blockchain essentially negates any issues associated with a single platform. This owes to the fact that it relies on a peer-to-peer (P2P) network, or a number of computers. In contrast to a centralized platform’s single point-of-data, decentralized platforms exist within multiple-points-of-data.