Using cryptocurrencies for charitable activities is now an established practice. Be it Crypto Giving initiatives or anonymous cryptocurrency donors, the amount of money dedicated to philanthropy through cryptocurrency is huge.
The global crypto space has always been concerned about using technology for social good. In many African countries like the Republic of Congo, Bitcoin helped people start their life from scratch. The underlying technology of Blockchain, however, is a new entrant to the social service space. Blockchain firms and experts are now working on ways to incorporate the technology into philanthropy.
The clearest social use case of Blockchain is in battling corruption. Since Blockchain uses a peer-to-peer mode for recording and verifying transactions, the possibilities of illegal transactions going unnoticed are little to none. In some Latin American countries, governments are already working with blockchain start-ups to incorporate the technology into administrative tasks. However, the phenomenon does not indicate the full potential of the technology. If used correctly, Blockchain serves a variety of purposes, especially in the realm of recording transactions and validating them. Its use case will expand beyond governmental administrative tasks in the coming years.
In a rather complicated way, Blockchain can also address wealth inequality. For instance, offering true ownership via digital tokens to people from marginalized commutes will help them retain their wealth in the face of national economic instability. Since inflation hits the poor the worst, cryptocurrencies can provide an effective way to conserve and grow wealth. The benefits will be the most notable for unbanked communities and people.