Humancoin Review

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

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.

Cryptocurrency market - Website : https://www.humancoin.net/

The cryptocurrency market is undergoing a period of rapid development; its capitalization fluctuates in the range of $0.3-0.8 trillion with a strong upward trend. An increasing number of individuals and institutional investors are placing their money in these new financial instruments. In early April 2018, the head of the IMF Christine Lagarde said that cryptoassets could change the consumer’s approach to savings, investments and settlements. She believes that cryptocurrencies will make transactions faster and less expensive, while the core blockchain technology has the potential to reinforce the overall security of the financial markets.

The interest in cryptocurrencies in no longer the preserve of a select few fintech specialists. Tokens that can demonstrate clear and coherent benefits for their owners will almost certainly see rapid growth. For example, Binancecoin broke into the list of the top 20 cryptocurrencies, with a capitalization of over $1.5 billion, simply by offering its users a 50% discount on Binance exchange fees, one of the most prominent cryptoexchanges.

Summary: a possible synergy of markets

The global estimate of three fastgrowing markets — charity, e-commerce and cryptocurrencies — exceeds $3.5 trillion. By ensuring the necessary trust bet-ween donors and the aid recipients, blockchain technology can propel this industry to incredible new heights.

The rise of a charitable blockchain platform integrated into online commerce loyalty programs and cryptocurrencies will change the philanthropy industry forever. The symbiosis of e-commerce and cryptocurrencies will facilitate an increase in the number of donors. For those involved in online commerce, offering a bonus affiliated with charity is an effective way to position their brand on an emotional level with their clients, as well as being an important element in any PR-campaign. And, finally, the whole process is just very convenient for everyone involved.

The advantage of the blockchain solution is that the benefits of working with the platform are evident. All the data generated from the receipt and movement of the donations will be available to anyone who wishes, for example, to donate money towards the development of a new cancer drug, and to an airline that encourages such actions by awarding such a donor with promotional miles.

Competitive analysis

Virtually everyone recognizes the need to make the philanthropic industry transparent and completely manageable with the help of blockchain technology. However, there are relatively few blockchain projects in the charity sphere: cherr.io, aidcoin, clearaid, bcharity among them. But these are niche or local start-ups that do not operate beyond the philanthropic industry. There are about the same number of blockchain projects developing loyalty programs, but all of them face the problems of a making a cold start and beginning with an insufficient user base in order to quickly and productively build meaningful cooperation with major global e-commerce players.

In contrast, the Humancoin Foundation integrates the charity industry, cryptocurrency market and e-commerce in a single project. An ecosystem of this kind provides a new incentive for donors, offering them the chance to take advantage of numerous loyalty programs around the world. While e-commerce players often accept cryptocurrency, it is not necessary in order to develop the Humancoin model.