Digital Currency and Blockchain in the Social Sector
Along with Bitcoin, Blockchain has also played a vital role in the financial world for proper growth in the social sector leveraging the digital currency.
Bitcoin, an online currency, is widely used for making payments as well as in the form of value for storing which helps in operating the monetary systems and the financial systems that are existing. Another way of getting involved with gold and dollar as a virtual alternative. With minimum fees for transactions and security, the currency can be exchanged for direct transactions allowing the companies to grow. Bitcoin can be used for various purposes like for purchasing minor basic needs to expensive items, for paying food bills, etc. However, along with Bitcoin, there are numerous other digital currencies too that are helping in the growth of the companies and the countries also.
Let’s check out how effective the digital currencies and blockchain are for social sectors!!!
Digital currency for fundraising
Not only for the commercial purpose, but the digital currency is also getting popular for fundraising activities which include its leverage in various nonprofit companies and foundations. Bitcoins are also now accepted in the form of donations by various social organizations working for children welfare and other social causes. With merely a click, you would even come across various political and social campaigns that are accepting Bitcoins in the form of donations. They are also used in the form of wallet payments for giving donations. Again, donating Bitcoins are not taxable which adds in using it in the form of charity or donations. Both blockchains and Bitcoins are used for donations which come up with utmost transparency as they can also be tracked for results after donation.
Blockchain for a social cause
When it comes to working on social sector, blockchain has proved to be a promising technology. Various international foundations, sectors, and agencies are approving blockchain in the form of donation or charity. Multiple projects are carried out through features like helping the children, transparency, local and international remittances, property rights protection, protection of the environment, and much more. The sophisticated technology is also aiding blockchain through a digital platform in observing every transaction, securing it and recording it too. There are various organizations for working for the benefits of children, army, air force, poor, etc., who accept blockchain as a valid form of donation while establishing democracy thoroughly.
Challenges both digital currency and blockchain have to face
No doubt, both digital currency and blockchain are much beneficial for social causes; there are still various countries or cases even where they are still unproven. Both come with a broad platform of volatility for providing a helping hand, yet, both have to face many challenges while doing so.
Blockchain is a concept that designed for facing social challenges, yet the technology is continuously making efforts for bringing revolutionary changes in the systems and the individuals to interact with different sectors. There are various corporations, government bodies, financial institutions who are working to use both in innovative ways.