International Journal Of Applied Engineering Research ISSN 0973-4562 Volumen XX, Number X (XXXX)pp
© Vishwakarma Scientific Publication
Blockchain Based Solutions For Non Government Organisations
Shivam Mishra, Aditya Moon
Department Of Computer Engineering, Vishwakarama Institute Of Information Technology, Pune
Abstract:
Blockchain technology has the potential to revolutionise various industries and sectors, including the non-
governmental organisation (NGO) sector. NGO's play a crucial role in addressing social and environmental
issues and improving the lives of people around the world. However, they often face challenges in terms of
transparency, accountability, and efficiency. Blockchain technology can help NGO's overcome these
challenges and enhance their impact. This research paper examines the benefits of using blockchain in NGO's,
including increased transparency and accountability, improved efficiency, enhanced impact, and fraud
prevention. It also provides examples of NGO's that are already using blockchain technology to improve their
operations and impact. The paper concludes that blockchain technology has the potential to significantly
enhance the operations and impact of NGO's, and it is likely that more and more NGO's will adopt blockchain-
based solutions as the technology becomes more widespread.
Introduction:
Blockchain technology has the potential to revolutionize various industries and sectors, including the non-
governmental organization (NGO) sector. NGO's play a crucial role in addressing social and environmental
issues and improving the lives of people around the world. However, they often face challenges in terms of
transparency, accountability, and efficiency. Blockchain technology can help NGO's overcome these
challenges and enhance their impact.
What is Blockchain Technology?
Blockchain technology is a decentralized, digital ledger that records transactions on multiple computers,
creating a permanent and tamper-proof record. It allows for secure and transparent record-keeping, without
the need for a central authority.
At its core, blockchain technology is a distributed database that stores a record of all transactions that take
place on a network. Each transaction is recorded in a block, which is then added to a chain of blocks (hence
the name "blockchain"). This creates a permanent and unchangeable record of all transactions that have
taken place on the network.
One of the key features of blockchain technology is that it is decentralized, meaning it is not controlled by a
single entity or authority. Instead, it relies on a network of computers (also known as nodes) to validate and
record transactions. This decentralization makes it much more difficult to manipulate or tamper with the
records on the blockchain, as it would require the collusion of a significant portion of the network.
Another key feature of blockchain technology is that it is transparent. All transactions are recorded on the
blockchain and can be viewed by anyone with access to the network. This transparency allows for increased
accountability and trust, as it is clear to see how funds are being used and who is participating in the
network.
Security in Blockchain:
Security is a key concern for any system that handles sensitive information or assets, and blockchain
technology is no exception. While blockchain technology has the potential to bring increased security to
various industries and sectors, it is important to understand the potential risks and vulnerabilities that exist.
One of the main security features of blockchain technology is its decentralized nature. As transactions are
recorded and validated by a network of computers (also known as nodes), it is much more difficult for a
single entity to manipulate or tamper with the records on the blockchain. This decentralization makes it a
secure platform for storing and transferring valuable information and assets.
However, there are still potential risks and vulnerabilities that need to be considered when it comes to
security in blockchain technology. Some of these include:
• Hackers: As with any digital system, there is a risk of hackers attempting to gain unauthorized access to
the network. While the decentralized nature of blockchain technology makes it more secure than a
centralized system, it is still possible for hackers to gain access to the network if proper security measures
are not in place.
• Malicious actors: There is also a risk of malicious actors attempting to manipulate the system by
introducing false or fraudulent transactions. To mitigate this risk, it is important to have strong protocols in
place to verify the authenticity of transactions and ensure the integrity of the system.
• Private keys: Private keys play a crucial role in the security of blockchain technology, as they are used
to access and transfer assets on the network. It is important to properly secure private keys and ensure that
they are not lost or stolen.
Overall, security is a key concern when it comes to blockchain technology, and it is important to implement
strong security measures to protect against potential risks and vulnerabilities. This can include measures
such as secure storage of private keys, strong protocols for verifying the authenticity of transactions, and
robust security systems to protect against hackers.
Benefits of Using Blockchain:
Blockchain technology has a wide range of potential applications, including financial transactions, supply
chain management, and voting systems. It has the potential to disrupt and revolutionize various industries by
providing a secure and transparent way to record and track transactions.
Blockchain technology has the potential to bring numerous benefits to various industries and sectors. Some
of the main benefits of using blockchain technology include:
• Increased security and immutability: One of the main benefits of using blockchain
technology is the increased security it provides. As transactions are recorded in a decentralized
manner, it is much more difficult to tamper with the records on the blockchain. This makes it a
secure platform for storing and transferring valuable information and assets.
• Increased transparency and accountability: Another benefit of using blockchain
technology is the increased transparency and accountability it brings. As all transactions are recorded
on the blockchain and are visible to all parties on the network, it is clear to see how funds are being
used and who is participating in the network. This increased transparency can help build trust and
improve the overall integrity of the system.
• Improved efficiency: Blockchain technology has the potential to streamline and automate
various processes, reducing the need for intermediaries and manual intervention. This can help to
reduce costs and increase the overall efficiency of the system.
• Enhanced security: Blockchain technology can help to improve the security of various systems
by providing a secure and tamper-proof way to store and transfer information and assets. For
example, blockchain-based systems can be used to secure supply chain management processes,
ensuring that goods are properly tracked and authenticated.
• Increased interoperability: Blockchain technology has the potential to improve
interoperability between different systems and organizations. By providing a common platform for
storing and exchanging information, it can help to facilitate seamless communication and
collaboration between different parties.
Overall, the benefits of using blockchain technology are vast and varied, and it has the potential to bring
significant improvements to various industries and sectors.
Current Problems in NGO
NGO's (non-governmental organizations) play a crucial role in addressing social and environmental issues
and improving the lives of people around the world. However, they often face challenges in terms of
transparency, accountability, and efficiency. Blockchain technology has the potential to help NGO's
overcome these challenges and enhance their impact. Some of the specific problems that NGO's face and
how blockchain technology can help solve them are discussed below:
• Lack of transparency and accountability: One of the main challenges that NGO's face is a lack
of transparency and accountability in their operations. This can make it difficult for donors and
stakeholders to see how funds are being used and what impact they are having. Blockchain technology can
help NGO's increase transparency and accountability by providing a secure and transparent record of all
transactions. This can help build trust with donors and stakeholders and improve the overall integrity of
the organization.
• Inefficient operations: NGO's often face challenges in terms of efficiency, due to a lack of resources
and the need to navigate complex bureaucratic processes. Blockchain technology can help NGO's
streamline their operations and reduce administrative costs by automating certain processes and
eliminating intermediaries. For example, smart contracts can be used to automate the distribution of funds
based on predetermined conditions, reducing the need for manual intervention.
• Limited impact: Another challenge that NGO's face is the limited impact that they are able to have,
due to a lack of resources and the difficulty in targeting their efforts towards those who need it most.
Blockchain technology can help NGO's enhance their impact by providing a secure and transparent way to
track and verify the impact of particular projects. This can help NGO's allocate their resources more
effectively and make better-informed decisions.
• Risk of fraud: NGO's are also at risk of fraud, as unscrupulous individuals may attempt to manipulate
the system or misappropriate funds. Blockchain technology can help NGO's reduce the risk of fraud by
providing a secure and transparent way to track transactions and verify the authenticity of transactions.
• Overall, blockchain technology has the potential to help NGO's overcome various challenges and enhance
their impact. By providing increased transparency, accountability, efficiency, and security, it can help
NGO's better serve their communities and achieve their goals.
Benefits of Using Blockchain in NGO's:
• Increased Transparency and Accountability: One of the main benefits of using blockchain in
NGO's is the increased transparency and accountability it brings. Blockchain technology allows for the
recording and tracking of all transactions, providing a clear and accurate record of how funds are being
used. This can help NGO's build trust with donors and stakeholders, as they can see exactly where their
money is going and how it is being used.
• Improved Efficiency: Blockchain technology can help NGO's streamline their operations and reduce
administrative costs. By automating certain processes and eliminating intermediaries, NGO's can save
time and resources. For example, smart contracts can be used to automate the distribution of funds based
on predetermined conditions, reducing the need for manual intervention.
• Enhanced Impact: By using blockchain technology, NGO's can better target their efforts and
resources towards those who need it most. For example, blockchain-based platforms can be used to track
and verify the impact of a particular project, helping NGO's to allocate resources more effectively and
make better-informed decisions.
• Fraud Prevention: Another benefit of using blockchain in NGO's is the reduced risk of fraud.
Blockchain technology allows for the secure and transparent tracking of transactions, making it more
difficult for fraudsters to manipulate the system.
Implementation of Blockchain in NGO:
There are several steps involved in implementing blockchain technology in an NGO:
• Identify the specific problem or challenge that the NGO is facing: The first step in
implementing blockchain technology is to identify the specific problem or challenge that the NGO is
facing. This could be a lack of transparency, inefficiency, limited impact, or a risk of fraud.
• Determine how blockchain technology can help solve the problem: Once the specific
problem has been identified, the next step is to determine how blockchain technology can help solve it.
This may involve researching existing blockchain-based solutions or developing a custom solution.
• Choose a blockchain platform: There are several blockchain platforms available, each with its own
features and capabilities. It is important to choose a platform that meets the specific needs and
requirements of the NGO.
• Set up the blockchain network: Once a platform has been chosen, the next step is to set up the
blockchain network. This may involve installing and configuring the necessary software, establishing
consensus protocols, and adding nodes to the network.
• Test and debug the system: It is important to thoroughly test and debug the blockchain system to
ensure that it is functioning correctly. This may involve testing various scenarios and identifying and
fixing any issues that arise.
• Launch the system: Once the system has been tested and debugged, it is ready to be launched. This
may involve training staff on how to use the system and communicating the launch to stakeholders.
Different Ways of Incorporating Blockchain in NGO:
Blockchain technology has the potential to revolutionize the non-governmental organization (NGO) sector
by bringing increased transparency, accountability, efficiency, and impact. There are several different ways
through which blockchain can be incorporated into NGO's, depending on the specific needs and goals of the
organization. Some of the main ways in which blockchain can be incorporated into NGO's are discussed
below.
• Donor tracking and transparency: One way in which blockchain can be incorporated into NGO's
is by using it to track and verify donations. Blockchain-based platforms can be used to provide a
transparent and secure record of all donations, allowing donors to see exactly how their funds are being
used and the impact they are having. This can help to build trust with donors and improve the overall
transparency and accountability of the organization.
• Supply chain management: Another way in which blockchain can be incorporated into NGO's is
through the use of supply chain management systems. By using blockchain to track and verify the
authenticity and provenance of goods, NGO's can ensure that they are using their resources efficiently and
effectively.
• Project tracking and impact measurement: Blockchain can also be used to track and verify the
impact of particular projects, helping NGO's to allocate their resources more effectively and make better-
informed decisions. By using blockchain-based platforms to track and measure the impact of projects,
NGO's can provide a transparent record of their efforts and demonstrate the value of their work to donors
and stakeholders.
• Smart contracts: Smart contracts are self-executing contracts with the terms of the agreement between
buyer and seller being directly written into lines of code. NGO's can use smart contracts to automate
certain processes, such as the distribution of funds based on predetermined conditions. This can help to
reduce the need for manual intervention and improve the efficiency of the organization.
• Identity management: Blockchain can also be used to manage identities, including those of
employees, volunteers, and beneficiaries. By using blockchain to securely store and manage identity
information, NGO's can improve the security and efficiency of their operations.
Overall, there are numerous ways in which blockchain can be incorporated into NGO's, depending on the
specific needs and goals of the organization. By using blockchain to increase transparency, accountability,
efficiency, and impact, NGO's can better serve their communities and achieve their goals.
Examples of NGO's Using Blockchain:
There are already several examples of NGO's using blockchain technology to enhance their impact
and operations.
UN World Food Programme: The UN World Food Programme (WFP) has implemented a blockchain-based
platform called "Building Blocks" to improve the distribution of aid to Syrian refugees. The platform allows
for the secure and transparent tracking of transactions, reducing the risk of fraud and improving efficiency.
GiveTrack: GiveTrack is a blockchain-based platform that allows donors to track the impact of their
donations in real-time. It provides a transparent record of how funds are being used and allows donors to see
the direct impact of their contributions.
BitGive: BitGive is a nonprofit organization that uses blockchain technology to improve the transparency
and efficiency of charitable donations. It has partnered with various NGO's to create blockchain-based
platforms that track and verify the impact of charitable projects.
Conclusion:
Blockchain technology has the potential to revolutionize the NGO sector, bringing increased transparency,
accountability, efficiency, and impact. While it is still in its early stages, the technology is already being
used by a number of NGO's to enhance their operations and impact. As the technology continues to mature
and become more widespread, it is likely that more and more NGO's will adopt blockchain-based solutions
to improve their operations and better serve their communities.
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