As new developments in the field of cryptocurrency continue to disrupt and decentralize the finance industry, one area that is also witnessing some major improvements is charity. Let’s face it, most of us have not actively gone out of our way to donate our cryptocurrency to charitable organizations or funds, but have instead probably held on to our assets with the hopes of gaining large returns through appreciation in value. Well, it just so happens that cryptocurrency has also made donating to charities that much easier, so maybe the next time you walk away from an investments with extra coins in your wallet, you’’ consider this new possibility.
What makes this such an innovative process is not just the cryptocurrencies themselves, but is more importantly its underlying technology: blockchain. The easiest way to understand blockchain is to think of it as a fully transparent and continuously updated record of the exchange of information through a network of personal computers, a system which nobody fully owns. This makes it decentralized and extremely difficult for anyone to single-handedly hack or corrupt the system, pretty much guaranteeing full validity and trust in each exchange of information.
So what does this all mean for charity then? It actually means a lot and could have tons of revolutionary implications for the industry as a whole, which aren’t all necessarily good. For example, if blockchain technology continues to innovate and advance at its current rate, we’ll soon be living in a highly decentralized world where the idea of “ownership” is changing each and every day. Take Uber, Lyft, and Airbnb for example, which have quickly changed the way we live and transport ourselves. Similarly, blockchain will increase the amount of “shared” assets which will mean that people physically own less and have fewer things to donate.
On the other hand, it also means that we will soon have more access to digital assets which may very well soon be the future of finance. Instead of having to go through a long and tedious process of manually donating to a charity or giving money online, we can simply transfer our digital assets with a click of a few buttons. To further speculate on the potential impact of blockchain on charity, we would have to understand way more than what we already know about the technology since it’s still at a relatively early stage in its development. Until then, we’ll just have to wait and watch for current crypto in charity projects and see how they can handle the digital revolution.
The idea of crypto being used for charity is not some sort of hopeful idea that we can implement in the future, as it’s already happening now. Charities have accepted cryptocurrency donations for years, and for some, it is now the fastest-growing type of donation. The transparent, traceable and low-cost transactions that blockchain systems deliver promise to revitalise our faith in charitable giving.
One such a project maybe ISKRA Project, a global charity project that aims to utilize the power of blockchain technology to help children around the world powered by Lucem Foundation. ISKRA is currently proposing with cutting-edge blockchain systems for donation collection. With what they call as ““ICO v3.0” path, ISKRA aims to collect 10% donation from every project that goes into cryptocurrency (ICO, STO, IEO, etc). The developer believes that this is the only way that cryptocurrency society can make an actual influence to the future. The developer realized that the cryptocurrency network is decentralized meaning it doesn’t have any governing authority or a single person looking after the framework.
ISKRA Project aims to introduce a philanthropy coin which allows investors to both donate to charity and earn a return on their investment, ISKRA Coin (CCOH). Digital currencies such as ISKRA can be bought and sold for profit on online exchanges, increasing in value when demand rises. Investors can also suffer a loss when demand for the coins decreases, but this is the same risk investors face when making other social impact investments with an expected financial return.
Interestingly, ISKRA Coin is backed by diamonds. The price of diamonds is disaster resistant and is more stable than gold. It is making ISKRA not only a secure cryptocurrency but also profitable investment. Moreover, ISKRA will also give a unique opportunity to exchange it for diamonds at any time, based on the Rapaport Price List and GIA certification. That means that you will always have a pure price without middlemen: this will save you between 10 to 50% of the diamond’s cost.
Crypto Coin of Hope
One obvious benefit from the rise in crypto-philanthropy is the availability of new revenue streams for charity. Because direct-to-charity donations are relatively easy to manage. ISKRA Coin, as an example, presents an attractive first-step opportunity for the giver and receiver. Studies show that millennial givers, in particular, want to have greater control over their giving and greater clarity on its impact. Blockchain-based donation systems offer effective systems for both.
Blockchain-based systems may also help to improve the reputation of charities. According to recent studies, 1 in 3 Americans are said to lack faith in nonprofits, many believing that these institutions spend too much of their budgets on overhead and too little directly on programs. Reduced overhead spending due to improved operational efficiencies and disintermediation through blockchain technologies (e.g., direct donor to beneficiary giving) could help restore faith in charitable giving among skeptical givers. This in turn could lead to increased philanthropic engagement and a rise in overall giving.
In the future more charities, and even foundations, could produce their own cryptocurrencies, the sale of which, similar to ISKRA Coin, could enable a new sustainability model. A charity token exchange, developed exclusively for the buying and selling of charity tokens, may one day bolster a new market-based approach to philanthropy in which both philanthropists and charities make money from trading “Crypto coin of hope.”
Learn more about ISKRA on these following links:
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