Block chain technology will bring great changes to the charity industry. Block chain has four advantages: decentralization, transparency, information traceability, and automatic execution through smart contracts. These four major advantages exactly solve the problem for which the traditional charity projects were criticized. In the past, what was most plagued by charity was that the whereabouts of its charity were unknown and information was not disclosed. Moreover, for public welfare projects, every donation is the public's love for and trust in the donation organization. Once corruption and other illegal acts are discovered, it will cause a fatal blow to charities. The development of block chain technology can circumvent the crisis of trust faced by charities.
The use of block chain will change the way people donate to charities and how charities use donations. Block chain technology, as a distributed ledger technology, can be summarized as follows: âmultiple parties who do not trust each other keep accounts together based on a certain consensusâ. Both donors and the receivers have ledgers. The information inside is transparent and cannot be tampered with. For charities, transparency brought about by block chain technology can ensure that donors are clear about the flow of their own funds, and the irreparable nature can also ensure that financial information will not be tampered with. Therefore, block chain technology will bring new vitality and vitality to charities.