Up to 800 cases of charity fraud were reported in the UK in 2016, a figure that police say is just a fraction of the overall crimes. In this e27 article, the writer covers global charity fraud, its consequences, and how blockchain technology can play a role in creating a safer space for humanitarianism and sustainable development.

Many top charity organizations, some being the likes of the Red Cross, have been criticized for their lack of transparency. This opacity, in turn, gives way for misappropriation of funds to take place. The problem with this is that the people in need are the ones who suffer the most.

The purpose of charity funds is to better the lives of the underprivileged — people who have been unable to make a proper life for themselves. When charity fraud takes place, it creates distrust within the system, discouraging people from wanting to contribute.

Fortunately, blockchain technology has allowed for humanitarian activities to take place in a way that is transparent and sustainable. Companies such as Giveth and Mannabase have created platforms that allow donors to give contributions confidently, because of the transparency and trust decentralization has offered.

Along with humanitarian needs, blockchain technology has also given companies an opportunity to create platforms that will further the goal of creating and achieving a more sustainable earth.

Among the blockchain-based companies mentioned was LUXCHAIN, a company offering its Decentralized Verification Solutions — solutions that empower personal luxury goods industry.

In the words of the writer, “The team is rapidly establishing itself as the standard for the verification and authentication of the entire second-hand luxury goods market; a market that has reached a worth of$3 Trillion Dollars in the last 20 years.”

The company powering LUXCHAIN has already generated the world’s first global luxury index powered by artificial intelligence (AI), with the goal of extending the life cycle of personal luxury products.

Traditionally, investors don’t find humanitarian projects to be of any interest because they have short-term gains and interests. This is why we need to move towards conscious capitalism. Conscious capitalism moves beyond the idea that capitalism is all about the money and while there can still be an economic incentive, the primary motive is to solve a problem for the common good.

Additionally, another concern is the separation between the business and shareholders. Shareholders expect maximum profit even if the business has good intentions and this might limit the potential of good intentions. However, an interesting element of tokenisation is that the interests of investors and users become aligned. As the size of the ecosystem grows, the token value grows, implying that benevolent projects result in benevolent growth.

Everyone is incentivised by tokens and hence contributes to the organisation. People profit when they work harder and contribute to the ecosystem. Everyone shares a bit of risk but the reward is huge. Due to the secondary market on exchanges, there is liquidity and we lower the risk for everyone. Tokens provide a really great aligning of interests i.e. when the project is done for humanity and sustainability, then everyone has incentive to maximise the good.

People have free will and should be able to make their own decisions about where they will put their capital. The exchanges need to happen — it is simply freedom of expression to transact value. Stifling innovation through these sorts of measures will give power to those who provide leniency to these new technologies.

It is time to think collectively and work together for our bright future.

For the full article, click here.

Follow us on social media to stay updated and learn more about LUXCHAIN:

Telegram: https://t.me/luxchain

Twitter: https://twitter.com/luxchain

Facebook: https://www.facebook.com/luxchain/

Reddit: https://www.reddit.com/r/luxchain

Website: https://luxchain.org