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The World Food Programme (WFP) is utilizing the Ethereum
blockchain to distribute cash assistance to the world’s hungriest families,
demonstrating that the technology can aid humanitarian organizations to safely
and quickly send help to nations who need it the most.
In a WFP press release, Farman
Ali, from the WFP Karachi provincial office, said:
“Blockchain
can revolutionize the way WFP delivers assistance to vulnerable families across
the globe. It can bring us closer to the people we serve and allow us to
respond much faster.”
As the food-assistance branch of the United Nations and the
world’s largest humanitarian organization, it is undertaking a project
employing the Ethereum blockchain as it works at changing its approach to how
it feeds the hungry.
Turning to the Blockchain
As well as giving food, the WFP has opened a cash assistance
program called Building Blocks.
The first test was undertaken in the heart of Sindh province
in Pakistan where transactions were authenticated and recorded on a public
blockchain through a smartphone interface.
The WFP said:
“Transaction
reports generated were then used to match the disbursements with entitlements.”
The WFP’s approach to adopt the Ethereum blockchain is the
organization’s attempt to reduce costs and risks related to cash-based transfers.
Over the last few years, the number of cash transfers have
increased for the WFP, which are proving effective and efficient at improving
livelihoods in some of the poorest nations. However, by doing so poses risks.
The WFP believe that with the blockchain they can explore
cheaper and less risky alternatives to getting people the money they need with
transparency and security in mind.
Through the use of the blockchain they can be sure that
people are receiving the food and money they need. Not only that, but by
knowing where the money is going, the WFP can track and verify the way families
spend the funds.
The blockchain has the potential to change the way things
are done for humanitarian assistance, particularly when it
comes to the world’s poorest countries.
If a disaster takes place in a country where access to help
is limited, organizations can use the blockchain as an efficient and quick way
of distributing funds. As the technology becomes more mainstream, more
organizations are realizing the benefits that it can provide, one of which is
to people who live in undeveloped nations who require assistance with
day-to-day living.
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