A crash course in Blockchain?

‘Imagine a giant digital notebook that cannot be changed, lost or destroyed. You just keep adding new information blocks along an unbreakable chain of digital code –that is block+chain.

This code is a digital ledger (think double entry accounting) that records transactions and stores data across a network of computers.

Instead of having one central authority like a bank or government or business in control, the transactions are transparent, verified and recorded by the network of independent stakeholders. Think less potential for institutional corruption as its decentralised!

The technology uses complex algorithms to ensure the security and privacy of the data stored on the blockchain. Mobile phones can now facilitate this into many remote areas.

Payments can be cryptocurrency, which is a digital currency that uses blockchain technology, operating independently of traditional banks.

Smart contracts are self-executing computer programs that automatically enforce the rules and terms of an agreement when certain conditions are met.’ paraphrased ChatGPT 2023 but mostly author

Now you’re a blockchain expert lets continue the fight for Nasri’s life.

Why hasn’t the issue of surgical child poverty been solved – after all, polio has been vaccinated out of existence and life spans in some African countries have increased 50% in 50 years. world bank 2023

Why? Because surgery is a difficult transaction – it involves many players, many intermediaries and sometimes many more who feel they are stakeholders, even when no direct involvement. graphic 1

In emerging countries these players do not have access to the institutions and markets of trust available in wealthier countries (such as legal, banking, health, education), nor the economic levers we take for granted to manage difficult multi-person transactions.

Unfortunately, better outcomes via improved legal, banking, health systems cannot suddenly occur just because more money alone is being “thrown at” an area of need – Aboriginal healthcare and some foreign aid has proven this time and time again. There must be more.

This is where Blockchain can shine and why it’s a gamechanger for so many, not just donors, it’s just as much a gamechanger for those who can benefit, the young and poor.

Blockchain has been specifically designed to deal with a lack of trust amongst dissimilar players involved in the same transaction, by turning the wheels with incentives and penalties, that work within tight, immutable, and pre-set parameters.

20^th Century top-down government aid and charity money dumps with no clear target and no effective policing were open to inefficiencies (cost) and misunderstandings through culture, language and training differences. These directionless, open to fraud databases and policies helped those in need, like a leaky boat.

On the other side, 21^st Century blockchain can (if done well) deliver on a poverty target in such a manner, that once it has been launched (through those smart contracts), it cannot be stopped until the outcome stated has been achieved.

Well directed blockchain systems now target and help like a missile for good!

With Blockchain you don’t need to wait. Donors with good intentions can begin helping, making a verifiable difference on the spot – NOW. Guaranteed! 

Find – Fund – Fix – Follow Up – Finish! Exactly as it happened for Nasri – he was found, funded, and fixed via a blockchain boosted health, community and donor system. Great job Blockchain!

Blockchain brought together three key disparate flows of effort and resource and connected into one.

• Philanthropy
• Medical
• Community

Blockchain (when done well) means resources are being allocated to outcomes not proposals – a huge difference.

Blockchain delivered for Nasri on Results not Promises.

Five years ago, Nasri had a lot lower chance of survival. Is that his family’s or you as a donor’s fault? Why don’t they help themselves?

Five years ago, if a donation was given – how did you follow it up, how did you even hear it was needed in the first place. How do you know it was real, the doctor was qualified, the medicines weren’t fake. How did you know the money got there and if it did, how happy was the donor that 50% of the donation was already gone in indirect costs before some pre surgery tests were started?

The supply chain for a child in surgical need was completely fucked.

Children in emerging countries have traditionally been poorly treated by economics – demand and supply and price doesn’t function when there is no supply. Incentives are only incentives when they incentivize, meaning large grants to large organisations don’t incentivize at the grass roots, if nothing gets there.

A poor family cannot work their way out of poverty when there is no access to capital via nonexistent banking systems, no legal systems ensuring fair payments and no education on how to use limited resources more efficiently.

When transaction costs at a bank are 4 times greater for the poor than the rich. When a simple accident with a 2-week turnaround and back to work in Australia is a lifetime of disease and lower income in Africa. When anything good is still being exported for little return, then economics is not working for the poor. How can things change?

Blockchain is how. The economic and donor supply chain of mistrust is now being remodeled via technology, via a blockchain of trust.

As a donor it’s human nature to want to help, but your instinct overrides when fear of paying too much or not making a difference – lack of trust – comes to the fore. Blockchain facilitates trust with you.

A blockchain can be where your money is held in escrow, so you are more trusting and donate more and the doctors are more trusting and do more, knowing they will be paid for a quality outcome.