How blockchain technology is redefining the world of social entrepreneurship | Posted by Nikolas Dejung | Coins | April 2024

femaleWith rising prices and the impending Bitcoin halving, blockchain technology is currently on everyone’s lips. While many people primarily associate blockchain with financial markets and cryptocurrencies, I would like to take this opportunity to shine a light on a completely different, but at least equally important, aspect of blockchain: its enormous potential in the social enterprise sector. In an interconnected world facing a variety of social, cultural and environmental challenges, blockchain offers an innovative approach to bring about positive change. By presenting three innovative use cases, we want to show how blockchain can transform social entrepreneurship and what new and exciting opportunities it opens up for us all.

Creating Transparency and Trust: The Example of BitGive

One of the most fundamental features of blockchain is its ability to bring transparency to processes. Charities are often criticized because donors cannot know exactly how their donations will be used. Additionally, administrative burdens and associated costs reduce the efficiency with which assistance gets to where it is needed. This creates distrust in philanthropy and discourages potential donors from providing financial support.

BitGive recognizes this challenge and has launched a platform called GiveTrack. GiveTrack is an innovative donation platform based on blockchain technology. This allows donors to track their financial contributions in real time and see exactly how their funds are being used. Using blockchain technology, GiveTrack ensures a high level of transparency and security by providing an immutable and publicly viewable record of all transactions. (Bit Give, 2024)

An exemplary project on this platform was the charity Whisper's initiative to provide much-needed medical assistance in Uganda. Facing the Children's Hospital and Maternity Department in Jinja, Whisper faced the enormous challenge of transporting seriously ill patients safely and efficiently. Hundreds of children and newborns lose their lives each year due to difficulties finding adequate emergency transportation. (GiveTrack, 2021)

To address this situation, Whisper set a goal of raising enough funds to purchase a specially equipped ambulance. The plan was to raise USD 8,000 to cover a significant portion of the total cost, with the remainder coming from other sources. Excess funds were earmarked for ambulance equipment or operating costs. (GiveTrack, 2021)

Amazingly, the goal was not only met, but exceeded, with a total of USD 13,371.94 raised in just 48 days. This impressive achievement highlights the effectiveness and participation of the global community when mobilized through a transparent and secure platform like GiveTrack. (GiveTrack, 2021)

Whisper is committed to ensuring ongoing connections between donors and projects by providing regular updates on ambulance usage (GiveTrack, 2021). This initiative not only saved the lives of many seriously ill children and mothers, but also set new standards for efficiency and transparency in the use of donations.

Improving Productivity: The AgriLedger Example

Another key feature of blockchain technology is its ability to increase productivity through increased transparency and efficiency. In the agricultural sector, where complex supply chains and unequal power relationships often lead to injustice, blockchain can bring about a real paradigm shift. Small-scale agricultural producers, especially in developing countries, face numerous challenges, including lack of market access, unfair pricing from intermediaries, and lack of information needed to make informed business decisions (Yankson, Owusu, & Frimpong, 2016). All of these factors not only reduce farmers' efficiency and productivity, but also affect their income and quality of life.

AgriLedger is using blockchain technology, a special form of distributed ledger technology (DLT), to fundamentally transform agricultural supply chains and empower smallholder farmers in Haiti. This innovation allows farmers to sell their mango products directly to the U.S. market without relying on middlemen. The project, launched in 2019, has disrupted traditional supply chains that often exclude farmers by giving them control over their produce until it is sold in the United States. Blockchain technology provides transparency by recording all transactions from farm to consumer in a digital register, allowing farmers to track their products and know directly about sales. (Wiggett, 2021)

Not only has this technology improved trust, but it has also provided farmers with critical data that can help them make informed decisions, access credit and potentially significantly increase their income. By implementing blockchain technology, transactions can be confirmed instantly. This contributes to a 24% increase in farmer productivity and a 40% increase in overall supply chain efficiency. (AgriLedger, 2021)

The initiative promotes a fairer and more transparent global trade system, and the project's success impressively demonstrates the transformative potential of blockchain in agriculture in developing countries.

Promoting Sustainability: The Tidey/BanQu Example

Blockchain technology is also showing its potential as a powerful tool in the fight for a more sustainable future. Amid the global problem of plastic pollution, which threatens ecosystems and threatens human and animal health, this technology offers a glimmer of hope for effective and transparent environmental protection measures.

Tidey, a company that collects plastic from nature, is collaborating with BanQu to develop solutions to Guatemala's plastic crisis using blockchain technology. The country is facing a serious problem due to plastic pollution, which not only harms the environment but also affects the quality of life of its citizens. Tidey recognized that approaches to tackling plastic pollution often fail due to a lack of transparency and traceability, making it difficult to assess the effectiveness of recycling and clean-up initiatives. (Banchwi, 2024)

Tidey is revolutionizing how we solve the plastics crisis by introducing a blockchain-based platform to record and verify plastic credits. Our partnership with BanQu enables transparent, tamper-evident traceability of recycled plastics, from waste collectors to the issuance of plastic credits. Every step of this process is documented through blockchain technology, ensuring transparency and security of the plastic collection and recycling chain. (Banchwi, 2024)

Since launching this initiative in March 2023, Tidey has seen significant success. The BanQu platform has more than 100 registered waste pickers capable of collecting and recycling more than 250,000 pounds of plastic waste. This amount of recycled material was converted into verifiable plastic credits, which increased sales by 47%. These figures are not only evidence of economic success, but also evidence of the scheme's positive environmental impact. (Banchwi, 2024)

Tidey's collaboration with BanQu also demonstrates how blockchain technology can be used to solve complex problems such as double counting and greenwashing. By attributing each plastic credit to a verifiable source, the system strengthens buyers’ confidence in the authenticity of their sustainability investments. This, in turn, not only promotes a cleaner environment, but also opens up new revenue streams for Tidey by providing transparency into Tidey's green efforts. (Banchwi, 2024)

conclusion

After looking at these three interesting use cases, I was impressed by the power of blockchain technology to drive social entrepreneurship. These projects demonstrate how blockchain can not only disrupt traditional business models, but also solve important social, environmental, and economic problems. Blockchain’s ability to bring transparency and trust to previously opaque processes creates new levels of accountability and efficiency. Especially for those sectors of society where there is a high need for transparency in the use of funds, this technology represents a revolution of sorts.

However, widespread implementation of blockchain technology also presents challenges. These include the need for comprehensive digital infrastructure and the public’s lack of understanding and trust in technology. This requires ongoing educational work to understand the benefits and capabilities of blockchain technology and promote broader adoption.

Despite these challenges, I am optimistic that blockchain technology has the potential to play a central role in social entrepreneurship. The projects presented are impressive examples of how innovative technologies can be used to bring real, positive change to the world. However, creating the conditions for the successful implementation of this technology and making its benefits available to all will require a joint effort from developers, businesses, governments and civil society. I am excited about the future and how blockchain will continue to be used to develop sustainable and equitable solutions to the most pressing problems of our time.

References

AgriLedger. (2021). Haiti Case Study. Retrieved April 2024 from AgriLedger: http://agriledger.com/case-studies/

Banku (2024). Case Study Tidy. Retrieved from BanQu: https://www.banqu.co/case-study/tidey-banqu-plastic-credits

BitGive. (2024). About Us. Retrieved April 2024, BitGive Foundation: https://www.bitgivefoundation.org

GiveTrack. (2021). Project Details. Retrieved April 2024, from GiveTrack: https://www.givetrack.org/project-details/117/An-ambulance-for-our-Magical-Children's-Hospital-in-Uganda

Wiget, L. (May 18, 2021). When Mango Farmers Meet Blockchain Agriledger. Retrieved April 2024, from Atlas of the Future: https://atlasofthefuture.org/project/agriledger-farm-blockchain/

Yankson, P. W., Owusu, AB, & Frimpong, S. (2016). Challenges and strategies for improving the marketing environment for agricultural products in developing countries. Journal of Agriculture and Food Information, 17(1)49–61.

This article was written as part of an assignment for the “Introduction to Social Entrepreneurship” course at the Blum Center for Development Economics, University of California, Berkeley.