Blockchain Revolution: How the Technology Behind Bitcoin Is Changing Money, Business, and the World

by Don Tapscott

But the blockchain can radically improve the transparency of how those organizations, and other institutions in the foreign aid value chain, function. Every dollar donated to the Red Cross could be tracked from its starting all the way through the value chain to the individual it directly benefits. Recall our hypothetical in chapter 1—the Red Cross could run crowdfunding campaigns for each of its most important initiatives—delivering medical aid and fighting the spread of disease, water purification, the rebuilding of homes—and when you donate you would know whether your dollar went to a plank of wood, a gallon of water, or a gauze Band-Aid. If funds went missing, the community would know and could hold these organizations accountable. Smart contracts could be employed that hold the aid groups themselves accountable. The funds for major projects—from housing initiatives to the implementation of a water purification scheme—could simply go into escrow and be released only after the successful completion of key milestones—securing title for a site, importing raw materials, signing a contract with a local supplier, building the finished product, installing a certain number of clean water access points—is achieved. The result? Radically improved transparency and accountability in the delivery of foreign aid, and thus significant improvements in the end results.