We all know that charities play an important role in our society. Charities help with things that really matter, for example the situation that is currently going on in Afghanistan. There, some charities already reported that they accept donations in crypto, in order to get money to solve the problems.
However, this is not the only way decentralized finance can contribute to the world of charities. But how else can it do so? That’s what we’re looking at today.
How can DeFi apply to the world of charities?
More and more you hear about crypto gaining a more prominent role in collaboration, now including charities. With the events in Afghanistan right now, for the first time we are seeing charities encourage mass donations in crypto, and for good reason.
Most charities are mainly funded by the government or large donors. Because of the cutbacks concerning the coronavirus, this is now naturally more difficult. Charities must therefore also look for solutions.
One of the biggest problems charities have to deal with is that donors often do not have full confidence in where the money goes after they donate it. Several organizations came under tremendous negative scrutiny because it was unclear where the money was going. By using blockchain, this can no longer happen.
Of course, there are even more possibilities for charities in DeFi. For example, they could go on strike or farm themselves to create even more funds in this way that could be used for their relevant purposes.
The possibilities are endless, but there is still a long way to go before all charities will fully accept technologies such as blockchain.