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blockchain in charity

The Use of Blockchain in Charity in the Middle East:

Last Updated on March 19, 2024 by Ameer Hamza

Blockchain is making a significant impact on major sectors worldwide. Many Middle Eastern countries have made significant blockchain investments. Still, blockchain solutions have not yet reached full-scale implementation in the Middle Eastern region or globally.

Blockchain is a technology that could greatly influence the charity sector and philanthropy by enhancing the secure and transparent management and distribution of funds. Unfortunately, the use of blockchain in charity in the Middle East is not yet common. However, investors and other relevant parties have created unrealistic expectations about how revolutionary blockchain technology may be for charity. It is still evident that the fundamental benefit of blockchain for charity is its potential to improve accountability and transparency by providing a way to provide “proof of impact” in reaching goals.

Below, we will look at some of the potential uses of blockchain in charity.

The Use of Blockchain in Charity

Reduction of Transaction Costs

The world of charity faces high administrative costs. This has become a huge problem. Charities and non-profit organizations have to devote a large amount of resources to marketing, fundraising, processing donations, and bank transactions. By using peer-to-peer networks, blockchain-based systems enable charitable groups to do away with financial middlemen like banks. This could reduce transaction costs and speed up transaction settlement times greatly.

Automation through Smart Contracts

Smart contracts are digital contracts that function via automated transaction protocols managed by many nodes linked to a blockchain network. Blockchain contracts are self-executing and self-maintaining. This means that they do not need middlemen like notaries or attorneys since they operate inside a decentralized structure that involves all permitted participants. This kind of algorithmic improves charity accountability while also fostering a sense of confidence among donors. For charitable purposes, automatic smart contracts are very helpful since they guarantee that donations are only used for the purposes intended and that beneficiaries are only granted access to cash after fulfilling certain requirements.

Enhanced Transparency

Blockchain transactions are immutable and transparent, facilitating a deeper understanding of donation systems for all involved parties. Records linked within a blockchain network can be traced throughout the entire value chain. Blockchain-based solutions enable donors to trace their donations until they are received by the designated recipients in the context of charity. Putting in place a strong and open system for monitoring and assessing effects may help cut down on wasteful spending, get rid of corruption, and promote higher levels of trust.

Enhanced Visibility and Traceability of Transactions

Blockchain technology ensures and promotes transparent transactions. Donors can simply verify whether their funds have reached the intended recipients by keeping an eye on the whole transaction chain. Donors are better equipped to choose which charity organizations to support in the future when their transactions are well-tracked and recorded.


Blockchain technology for charity and fundraising is still in its early phases. Nonetheless, philanthropists, charities, and non-profit organizations have the chance to embrace blockchain technology as a productive way to help people in need as it continues to gain awareness and acceptance.

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