Blockchain might sound like something from the future. But in fact, it’s already integrated into our lives and growing rapidly. Gartner has predicted it will generate a business value of $176 billion by 2025 and $3.1 trillion by 2030.
One of blockchain’s clear and growing uses is how it can be leveraged to create a social impact. It is decentralised and tamper-proof, making it an accessible and secure way to store and share data worldwide. With 77% of consumersmotivated to purchase from companies committed to making the world a better place, blockchain could transform the social impact strategies of businesses across the board. We’re already seeing it take a leading role in transformativeprojects.
How safe is blockchain for social impact projects?
Blockchain is known for playing a pivotal role in cryptocurrency. While cryptocurrency has come under scrutiny, more recently in terms of the fall of FTX and its founder Sam Bankman-Fried, it is still widely regarded as the safest way to store digital data.
For the same reasons it is used in secure digital currency, it is also a valuable asset in social impact projects. Its digital database stores information across multiple computers; the entire network must verify any new information. Essentially, each block of information in the chain is irreversible because it is part of an interlinked network. It’s impossible to hack or tamper with. Furthermore, third-party intervention or autocratic monopolies aren’t a concern because it is decentralised. Complete digitalisation creates global access.
This accessible, secure and neutral technology is perfectly designed for social impact projects.
5 practical use cases for the social impact of blockchain
The positive potential of blockchain has already been realised, and it’s being leveraged on a widespread scale. Here are 5 practical use cases showing how blockchain technology can deliver tangible social impact.
1. Climate change
The effects of climate change disproportionately impact less developed countries. Livelihoods are destroyed by extreme weather events. Smallholder farms in Kenya are entirely vulnerable to extreme weather conditions that destroy harvests and leave communities with no way to provide for themselves.
Farmers had few options until ACRE Africa & Etheric joined forces to create fair and affordable agricultural insurance to replace the expensive and inefficient coverage. The secure and verifiable database tracks weather conditions and automatically triggers payouts. Automation reduces costs and ensures timely processing. The transparency of a decentralised and secure system ensures a fair and equitable system.
2. Healthcare
There is no industry where protecting and sharing information efficiently is more critical than in the healthcare sector. Zarela has developed a solution using blockchain to fast-track research and develop solutions for some of the most detrimental health conditions we, as a society, face today: neurological diseases such as dementia, brain tumours or Alzheimer’s.
Data collection has been one of the main reasons why research in neurological disorders. Obtaining the biosignal data required in neurological research was costly, time-consuming, and involved motivating large groups to participate.
Zarela has found a solution in their Pay to Contribute scheme. Researchers submit their request for data, and global participants, motivated by payment through Zarela’s secure cryptocurrency and reassured that their sensitive information is being shared safely, share their biodata. Research needed to save lives and transform the quality of life can take place easily and quickly through blockchain.
3. Finance
Financial inclusion is a powerful social impact project that creates a fairer and more democratic society. Celo is using blockchain technology to bring the vision of financial inclusion to life. While cryptocurrency is seen as a secure way to exchange money, it hasn’t been accessible to all. The Celo Wallet tool makes using cryptocurrency easier by, for example, performing transactions through text messaging. This makes it much simpler for the everyday user.
They’ve also worked to address one of cryptocurrency’s biggest challenges: its volatility. Celo Wallet has stabilised crypto payments by offering users access to currency linked to USD, EUR, and Brazilian Real. Reducing risks and complications creates an inclusive financial system.
4. Rural communities
Often those left out of the transformative opportunities of digitalisation are rural communities. Hara is changing that by supporting the digitalisation of Indonesian farmers through blockchain technology. By collecting, storing and sharing otherwise invisible data about the farmer’s work, including land and weather conditions, farmers can ensure equitable treatment and leverage more opportunities.
From tracking rice production to supporting the administration of loans, Indonesian farmers are given opportunities for growth due to the data exchange through blockchain. Greater awareness and organisation through blockchain empower farmers in rural communities.
5. Education
With decentralisation and accessibility being two core values of blockchain technology, education on leveraging this technology is widely shared. The collaboration between ChainLink and the United Nations Educational, Scientific, and Cultural Organisation (UNESCO) Global Education Coalition aims to share knowledge on leveraging blockchain to remove any barriers to its widespread application.
A broad understanding of decentralising data brings about open-source and community-led global infrastructure, empowering ordinary people. The availability of resources that upskill people and institutions in this technology means it can be used in projects that impact the everyday lives of ordinary people for improved social cohesion. This education initiative focuses on spreading knowledge of universally connected smart contracts because it encourages fairness and representation.
Closing thoughts
As an accessible, secure and decentralised technology, blockchain can be leveraged to empower communities often left behind in digital transformation and make an impact on a wide scale. Its application in social impact projects will continue to improve our everyday lives as its use spreads and companies recognise its potential in their social impact strategies.