Humancoin - Set To Herald A New Era For CHARITY

Marketing analysis - Website : https://www.humancoin.net/

In 2017, according to MarketInsightsReports, the size of the charity market was estimated at an impressive $747 billion and it is clear that an enormous volume of “peer-to-peer transactions” are not being measured: many of us spare our change to people on the streets or make impulsive donations to charity from time to time.

It is surprising that over the centuries the charity industry has changed very little in terms of the technology employed, except that the role that monasteries played two hundred years ago has now been taken over by philanthropic foundations. While the funds now have phones, printers and computers in their offices, the problems haunting the industry have remained the same. It is difficult for philanthropists to find worthwhile projects, quickly and seamlessly transfer money to them, and most importantly, be sure that the aid that they provide reaches the addressee and is used purposefully for a just cause without any significant transaction costs.

Blockchain technology and the associated P2P Internet platform help solve the problems of the industry and provide a powerful impetus for its further development.

· Donors can monitor transactions to see that their funds are being spent exactly as intended.

· Charities can demonstrate their integrity by providing information on how the funds are being used.

· Quick payments (including cross-border transactions) are simplified and the problem of currency and cryptocurrency conversion is solved.

· Automation of all processes can significantly reduce transaction costs.

The Humancoin platform offers a revolutionary solution for the charity industry. The consolidation of blockchain technology, the cryptocurrency market and e-commerce loyalty programs into a project will forever change the charity industry. Let’s look at each of the three industries.

Charity market

Every third person on Earth gives to charity at least once per year, with 50% of donors providing aid to strangers according to the World Giving Index 2017, compiled annually by the Charity Aid Foundation. For the third consecutive year, charities have raised a record volume of funds. In the US alone, the amount of recorded donations reached $400 billion. About three-quarters of the country’s residents have helped a stranger at least once, and two-thirds have donated money to multiple charity foundations. The volume of donations in the US consistently exceeds 2% of the nation’s GDP; around 7 new charitable foundations are created every single day, with more than 1.5 million currently in operation across the country.

In other countries, too, charitable donations represent a significant proportion of the overall economy. In Europe, the British have the largest number of philanthropists, and according to various data sources: 70% of the country’s residents transfer money to support humanitarian projects. Germany, Japan and France are also among the countries where the population actively engages in donating money to charity. The Mohammed bin Rashid al Maktoum Foundation, one of the largest charitable organizations in the world, is based in the UAE.

According to the Charity Aid Foundation, private individuals are the most active donors. Traditionally, their contributions account for up to 80% of all donations, with crowdfunding rapidly evolving. Around 15% of all donations are through foundations, with large corporations accounting for only 5% of donations.

People donate money more often and more readily to religious causes (32% of the collected money); education (15%); humanitarian aid (12%); charity fund projects (11%) and healthcare (8%). An additional 22% of donations account for other purposes, including environmental protection, protection of wild animals, as well as culture, art and international projects.

Problem

Despite the rise of new mechanisms for donating, the charity industry still cannot overcome its main obstacle — a lack of trust. Donors, most of whom are private individuals, simply lack the means to verify whether their funds have reached the addressee in full and in the required timeframe, even if they transfer the money with the help of specialized organizations. According to various sources, about 20% (or more) of all donated funds end up being kept as administrative expenses by charity foundations.

Many are faced with the complexity of cross-border payments (when one wants to help a foreign recipient) and later, potential difficulties with regulatory bodies. In addition, donors are forced to spend a part of their well-intentioned contribution on covering the operational costs of the transaction.

Solution

The distributed ledger technology, which is designed to put an end to the middleman, gets rid of the long charity chain composed of banks, NGOs, state bodies and law firms. Blockchain provides a digital mechanism for recording and viewing any transaction. It is important that the record cannot be hacked or modified. Blockchain solves the trust issue by providing transparency, traceability and security.

Importantly, the new technology facilitates the development of direct financing platforms on a much larger scale. Philanthropists themselves can ultimately benefit from automated smart contracts as the recipients of grants will only be able to use their funds after meeting mandatory conditions.

All the many advantages that blockchain delivers will spur the growth of the charity industry. This new technology is already being studied by major market players such as UNICEF, the World Bank and Bill & Melinda Gates Foundation. Over the past few years, a number of respected charitable organizations such as the Red Cross, Save the Children and United Way, among others, have already begun accepting donations in cryptocurrencies.

Website : https://www.humancoin.net/