In order to enhance aid distribution and proactively handle emergencies, blockchain technology can be used, which will ultimately increase the impact of humanitarian help, according to Mercy Corps CIO Scott Onder.
The Potential of Blockchain to Quicken the Distribution of Aid
Recent years have seen blockchain technology transcend buzzwords and demonstrate its usefulness in important domains like the provision of foreign aid. As Chief Investment Officer of Mercy Corps Scott Onder notes, in times of crisis, time is of the essence and blockchain combined with data analytics allows humanitarian organisations to respond more quickly and effectively. This strategy can reduce expenses and increase the impact of relief efforts by not only speeding up reaction times but also potentially mitigating the consequences of disasters before they worsen.
Proactive Assistance: Blockchain-Enabled Preemptive Measures
Recent hurricanes in Florida brought to light the difficulties relief agencies encounter when attempting to transport essential supplies to impacted communities, where logistical issues and destroyed infrastructure can lead to delays. Scott Onder highlights that using blockchain-driven solutions to enable “anticipatory action” is a more effective strategy than only depending on a reactive one. By collaborating with fintech companies and employing blockchain technology to deliver help in advance, Mercy Corps has been exploring this approach.
One example that Onder gave was of a collaboration between Diva Donate, Mercy Corps, an oracle service, and a microfinance provider. They started a trial program that monitored vegetation levels using satellites for remote sensing. Smart contracts distributed money to those in need automatically as soon as a threshold signifying drought conditions was met. When the aid was sent proactively, before the drought got worse, it not only brought relief in a timely manner but also resulted in significant cost savings.
An Affordable Approach to Humanitarian Relief
By reducing costs by 70%, the pilot program demonstrated that proactive planning may maximise resource utilisation and increase the number of individuals who get aid. As Onder notes, blockchain is essential to improving the effectiveness and impact of aid distribution. By using blockchain, Mercy Corps is able to support a humanitarian system that anticipates disasters, assists communities that are at risk, and develops long-term resilience in the face of persistent challenges.
Delivering relief before to a disaster is seven times more cost-effective than typical aid, according to research, as Onder points out. In order to ensure that low-income populations can adapt and thrive through resilience-building measures, blockchain strengthens this process by enabling more effective crisis detection and response.
Mercy Corps is transforming the way help is distributed by implementing blockchain, demonstrating how technological innovation may greatly improve humanitarian efforts.
