Since the emergence of Bitcoin, its potential to reshape the financial industry remains a topic of debate. Yet, the underlying technology—blockchain—is widely recognized as a transformative innovation. This decentralized database system is driving change across various fields such as healthcare, logistics, and e-commerce.
In our highly globalized world, countries affected by severe disasters or conflicts often receive donations and supplies from international sources. However, inefficiencies in distribution systems frequently prevent these critical resources from reaching those who need them most.
As the world’s largest relief organization, the United Nations has taken steps to tackle this challenge. Since May, the United Nations World Food Programme (WFP) has used Ethereum-based blockchain technology to distribute food vouchers worth $1.4 million to 10,000 Syrian refugees in Jordan. Houman Haddad, the project lead, stated that the WFP plans to expand its blockchain initiatives with a goal of reaching one million transactions per day.
Haddad also appeared at an Ethereum developer conference to recruit talent for the UN’s blockchain project, Building Blocks. The aim is to extend blockchain-based payments to 100,000 refugees by January.
How Blockchain Supports Refugee Aid
Currently, the aid distribution is carried out through supermarkets in Jordanian refugee camps. Unlike typical transactions, these involve iris scanners at checkout to verify refugees’ identities. Once food is purchased, the transaction is recorded directly on a blockchain ledger, eliminating the need for physical cash.
According to Haddad, this technology significantly reduces fees paid to financial intermediaries. It also enhances privacy for aid recipients and offers greater transparency in tracking how funds are used.
The Importance of Broader Adoption
Haddad emphasizes, “If only we adopt this new technology, we cannot harness the full power of blockchain.”
Paul Currion, founder of the blockchain-based aid platform Disberse, acknowledges the impressive results of the WFP’s project. However, he highlights the challenge of integrating blockchain systems across different organizations. “We can’t just hand someone a ticket and tell them to jump on the blockchain express. We need to bring them onboard,” Currion explains.
Haddad is already working on expansion plans. By April, the Ethereum-based voucher system is expected to cover all refugees in Jordan—amounting to over 500,000 people. He also hopes more organizations will join the initiative by then.
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Frequently Asked Questions
What is blockchain technology?
Blockchain is a decentralized digital ledger that records transactions across multiple computers. Its key features include transparency, security, and the elimination of intermediaries, making it suitable for applications like humanitarian aid distribution.
How does blockchain help refugees?
Blockchain enables direct, secure, and efficient transfer of resources such as digital vouchers. By using identity verification tools like iris scanners, it ensures aid reaches intended recipients while reducing costs and increasing accountability.
Which organizations are using blockchain for aid?
The United Nations World Food Programme is a leading adopter. Other NGOs and platforms like Disberse are also exploring blockchain to improve transparency and efficiency in humanitarian operations.
Are there challenges to implementing blockchain in aid work?
Yes, interoperability between systems and technical infrastructure remain hurdles. Widespread adoption requires collaboration among governments, aid groups, and technology partners.
Can blockchain prevent fraud in aid distribution?
Absolutely. The transparency and immutability of blockchain make it extremely difficult to alter records fraudulently. Every transaction is traceable, enhancing overall trust in aid delivery mechanisms.
What’s next for blockchain in humanitarian contexts?
Expect broader implementation across more regions and sectors. Future developments may include integrating smart contracts, improving scalability, and enhancing user accessibility for vulnerable populations.