Realistic Obstacles to the Application of Block Chains in Non – Profit Organizations

nnnIn addition to financial institutions, some nonprofit organizations focused on international development are also using block chains to carry out their work. While these efforts are so significant that more nonprofits are concerned with the technology, they also have some practical hurdles in applying this technology, such as the fact that member countries are different and need to analyze their specific use cases as well Some countries do not have the political will to use the technology. In general, the use of block chains in these organizations is more complex and requires an in-depth study of technology to make better use.n
nnTranslated by: Inan
nWhile the concept of Wall Street experts and big banks proves to attract the most attention, they are not the only global organizations interested in block chain technology.n
nIn fact, the world’s largest and most influential nonprofit and multilateral organization is also seeking block-chain solutions to improve the social and economic outcomes of developing countries.n
nThe United Nations World Food Program (WFP) has implemented a pilot project to provide assistance to refugees in Jordan; the World Bank has set up a block-chain lab in June to develop solutions that can be deployed in its customers’ countries; the Inter-American Development Bank (IDB) A digital asset registration that aims to make Latin American businesses more accessible to loans.n
nWhile these institutions have brought important resources and institutional forces to the chain area, they also face unique barriers to technology implementation.n
nLike all organizations, they not only have to keep up with the latest technology, make the idea linked to finding a scalable solution, and must also do these activities in a state bureaucracy that is financed by member states.n
nWhen deploying new technologies, these institutions have different financial incentives than private or sovereign governments. This is a key reason for the development of sectoral chains in the international arena lagging behind other sectors.n
nTomicah Tillemann, head of the new Bretton Woods system, said that while block chains and financial technology received millions of dollars of investment, the chain of chains in the area of ​​social influence and governance was far less than that.n
nGabriela Andrade, an IDB financial market specialist in Washington, DC, said:n
nn”The theory is justified – the value proposition is clear, but the question is how do we implement this technology?”n
nBalance the moven
nIn short, there are still two differences between the two aspects of Andrade.n
nIn fact, professional developers are taking action to balance the application of the latest technology with real-world awareness of the actual needs of Member States and recipients.n
n”We have come into contact with many countries that are very poor, lack education or electricity, and even have little water resources,” said Rose Chan, who has helped the World Bank to build an internal community chain work group but recently left the organization.n
nChan also mentioned the emergence of mobile payments and banking, pointing out that these technology solutions are beyond the ability of many expected beneficiaries to actually use it.n
nShe told CoinDesk:n
nn”Four or five years ago, the poor still did not use smartphones, so it was foolish to talk about technology in their difficult circumstances.”n
nnMoreover, the humanitarian nature of multilateral organizations means that it is not easy to modify existing systems because, although these systems may not be perfect, many improvements have been made over the years.n
nMichael Pisa, a policy researcher at the Global Development Center (CGD), said: “Members of the development community are all about the same position: everyone wants to be at the forefront, but they make decisions about the distribution of aid, so they have to do this “n
nPisa’s report on how the development organization should deal with the block chain is about to be published, and he emphasizes the diversity of use cases as a developmental link.n
nThese use cases include how they can be applied to aid payments, cross-border payments, digital identities and property rights, but he believes that the early use of the technology may have adverse consequences.n
nHe wrote:n
nn”While the excitement of the technology is understandable, it also creates the risk that development organizations will accept and rely on it before fully understanding the technology, which raises concerns about data security and potential financial losses.”n
nMechanically appliedn
nExperts emphasize that development organizations can not fall into the trap of a chain of chains or any other technology to solve the challenges of the magic scheme.n
nAfter all, over the years, poverty, humanitarian relief, property rights and financial delinquency have not been a lack of solutions, but these problems remain.n
nChan explained that for decades, people have been trying to provide services for people who do not have a bank account, but there are still 2 billion people worldwide without a bank account.n
nshe says:n
nn”The block chain will not solve the problem completely, it is a nice new tool, but it is not omnipotent.”n
nnBecause the development of each country is different and has its own historical and political background, the use of a block chain for a particular country is not necessarily suitable for another country.n
nFor example, land registration in the former Soviet Union became a popular block chain use case, but in Latin America, the question of who is the legal owner of the land usually involves major problems.n
nThese disputes can be traced back to decades or even hundreds of years before the colonial period.n
nAndrade said:n
nn”This does not solve the problem of land formalization or land ownership, and we need to solve this problem before we begin to explore the block chain.”n
nnSince Latin America is progressing more than some other regions, the use case such as digital identity (which may change in sub-Saharan Africa or South Asia) does not have much impact on the region.n
nWith this in mind, IDB is more concerned with the development of asset registration methods and is designed to address more pressing issues in the region, such as improving access to loans and finances for SMEs.n
nChan stressed that these institutions must continue to focus on what they are doing and use the chain as a means of strengthening their existing strengths:n
nn”Our competitive advantage is an understanding of developing countries and markets – we have field personnel and field talent, this is our competitive advantage, not the development of block chain software.”n
nChange thinkingn
nAnother major obstacle to the use of the block chain to improve governance and economic outcomes is to make the need for a political will to do so.n
nSpecifically, the transparency of the block chain is not welcome for some politically corrupt and local economies that are closely related to the government.n
nPisa emphasizes that, in general, block chains are a technical tool that requires proper implementation to be used effectively. He also noted that various agencies and governments have been trying to make aid distribution more transparent through technology for decades.n
nHe said:n
nn”The reason for this is that donors can not make aid more transparent and the government can not make aid more transparent, and I do not think that technology is a major obstacle.”n
nnPisa added:n
nn”The block chain can make some work easier, but its application ultimately depends on political will.”n

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