Blockchain could change the way we deal with disasters

Baozou Commentary : Blockchain can make the process of disaster aid funds more secure and transparent, and can also speed up the response time. It usually takes an average of 90 days for aid funds to reach non-governmental organizations. The rapid response action Start Fund will pay cash within 72 hours after receiving the reminder. It is the fastest response early warning mechanism in the world. Start Fund has a decentralized decision-making process that aims to transfer power from bureaucratic agencies thousands of miles away to local emergency agencies, who can decide where the money goes.

Translation: Nicole

Much has been written about the potential of blockchain technology to change the way the world works, from creating new currencies to changing the way people vote. Now its transformative potential can be applied to disaster events to see if it can save lives and improve humanity’s ability to respond to disasters.

Last year, the UK's chief scientist Mark Walport stressed that blockchain, which uses cryptography to create a distributed digital ledger that records transactions, could fundamentally change society and "have the potential to redefine the relationship between government and citizens in terms of data sharing, transparency and trust".

In recent months, there has been increasing scrutiny over where donor funds are going, and calls for greater accountability and transparency. Further checks and balances on a system that already has very high levels of reporting can add unnecessary red tape and bureaucracy, reducing efficiency and effectiveness. But blockchain can offer an elegant solution that not only makes the process more secure, transparent, and accountable, but also speeds up response times.

A pilot scheme is underway with Start Fund, a rapid response operation run by 42 aid agencies in the Start Network that directs UK aid to small emergencies that are usually not reported and receive no funding. The pilot scheme has been used more than 90 times since it was set up in 2014, helping 5.4 million people in 49 countries. One of the shortcomings of the current humanitarian system is that it takes too long to get money to agencies working on the ground in a crisis. Central emergency funds, which are routed through the UN, take an average of 90 days to reach an NGO. But Start Fund disburses cash within 72 hours of being alerted. Projects must be up and running within seven days and completed within 45 days. This makes it the fastest-responding early warning mechanism in the world.

Speed ​​is king, and anything that saves time is valuable. As Dave Brailsford's Team Sky constantly seeks "marginal gains," blockchain can further streamline the Start Fund. First, the technology will be tested in the peer review and decision-making process used by Start Fund members. Currently, the administrative process of exchanging letters, contracts and other paperwork required to trigger payments often takes several hours, sometimes longer. Blockchain should be able to speed up responses, record decisions and notify national staff that funds are on the way.

Ultimately, the hope is that blockchain will enable self-executing "smart contracts" that are triggered when certain criteria are met, thus speeding up transaction times and getting resources to emergency areas more quickly. The pilot program has received a £50,000 grant from the Estonian government, which is an early adopter of blockchain in the world and the first government to allow digital e-residency, meaning it will be easier for non-Estonians to open businesses and bank accounts in the country.

Blockchain also promises unparalleled security and is the underlying technology for the full digital currency Bitcoin, which can record contracts and wills. Its digital ledger can record every decision and trace transactions from donor to recipient. Start Fund has a decentralized decision-making process that aims to transfer power from bureaucracies thousands of miles away to local emergency agencies, who can decide where the money goes. Blockchain's impeccable password memory technology can reduce fraud, and with decision-makers accountable, donors can be assured that funds are fully traceable.

The number of people affected by crises in the world has almost doubled in the past decade, and humanitarian emergencies are also increasing. This week alone, the specter of famine was added in Yemen, Nigeria, South Sudan, and Somalia. As the gap between needs and funding widens, the ability of non-governmental organizations to respond is increasingly strained. Therefore, the blockchain application of saving lives has emerged in a timely manner!