Blockchain, a specific type of database, the main technology behind the Bitcoin network. Common use cases of blockchain technology include global currency, value shop, and even a way to track goods on an immutable ledger. A good starting point for understanding what drives the acceptance and use of technology is to take a closer look at human psychology to consider what motivates the average individual to engage in the cryptocurrency domain.
The natural resource trap
Many countries in the bottom billion have governance issues preventing the countries from flourishing. Corruption and authoritarian governments with little to no democratic values create a black hole that absorbs all resources. Blockchain technology is a good solution to all of these problems. By providing an immutable ledger that no one can control, regardless of power or influence, a country can have a clear and trustworthy view of the natural resources and resources of its own nations. In addition, using blockchain technology protocols as a store of value could bring economic stability to these types of countries that often face major inflation, bank runs and strict currency controls.
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Paradoxically, countries that are rich in natural resources are usually worse off than other countries. The ability to have a source of value completely separated from their government’s reach would help millions around the world in the fight against poverty.
Corruption and governance are tied to natural resources. Natural resources make conflict almost inevitable, as non-transparent government officials often exploit surpluses for their own gain. Fortunately, blockchain technology, with the recent boom of companies pursuing asset tokenization, offers a workable way to ensure that the wealth of a nation is used effectively for the good of everyone, not only a few autocrats.
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How is this going to tie in with philanthropy? The truth is that philanthropy activities can only achieve their full potential in an open and trustworthy environment. The work of Mercy Corps, a non-governmental humanitarian assistance organization in Uganda, is a perfect example of how blockchain technology can be used to directly impact philanthropy needs. Blockchain technology’s ability to offer relatively cheap and flexible trustless systems may be a catalyst that many philanthropy organizations have been waiting to make greater progress in their humanitarian efforts. These tools offer a way to ensure that resources eventually end up reaching the “bottom billion” that are struggling, which may be a starting point for accountability when resources end.