Technology in general aims to facilitate human life, make it easier and faster, in addition to providing the desired solutions and assistance.
Blockchain technology, although it has been around for a little more than a decade, and as such it can be said that it is an emerging technology, meaning that it is still in its infancy to a large extent, but it is already being applied in innovative ways to help solve some of the challenges faced by most societies. Marginalization in the world.
Here, we'll look at what blockchain technology can do in marginalized communities:
Recently, Dianning Yudono, chief software engineer at BCG Digital Ventures, the incubation and investment arm of the management consulting firm The Boston Consulting Group, gave webinars about the United Nations World Food Program (UN) that is being attempted to materialize into a project. “Building blocks” and a currency introduction plan that would further integrate societies into the popular economy.
The main goal of the “Building Blocks” project is to provide people in refugee camps with the means to quickly and securely purchase food and necessities using direct blockchain-based cash transfers.
Another goal is to ensure that you no longer have to worry about lost or stolen food stamps or about outside organizations, such as banks, that have access to personal data.
It is often direct cash transfers, according to World Food Program research, which are the most effective and efficient way to distribute humanitarian aid as well as support local economies.
However, the ability to distribute them depends on the support of local financial institutions, but as is known, refugees face restrictions in opening bank accounts.
To try to remedy this situation, in early 2017 the World Food Program introduced a pilot blockchain-based system to record and authenticate transactions in Sindh province, Pakistan, which did not require the bank to act as an intermediary to connect the two parties.
The system is now being used to support 106,000 Syrian refugees in the “Azraq” and “Zaatari” camps in Jordan and 500,000 Rohingya in the “Cox's Bazar” camp in Bangladesh.
With regard to how the system works, it is as follows:
Registration is made with the United Nations High Commissioner for Refugees, after which people receive a virtual wallet containing $ 30, which is stored in the beneficiary's account on the Ethereum blockchain, so that they can purchase goods from selected retailers.
Upon checkout, iris scanning enables them to spend money by verifying their identity, while the transaction is recorded using the blockchain.
The retailers are then compensated for the treatment by the World Food Program, which, in the case of Syrian refugees, also shares data with other program providers, such as UN Women.
The UN Women cash-for-work initiative allows women participating in the program to either withdraw cash from a supermarket in refugee camps or buy goods directly.
Facilitating trade in marginalized communities using blockchain:
At the same time, the goal of the “Grassroots Economics” project is to provide people with a digital currency that gives them the possibility to exchange goods and services and create new businesses.
Yudono explained about this project by saying:
Marginalized communities, such as those living in illegal settlements in Kenya, rely on hard labor to earn shillings and return them to the village.
But a lot depends on seasonality and crop yield, so a lot of jobs are lost due to the Coronavirus.
There are many services available, such as hairdressing, but not enough money is circulating to support the local economy.
To remedy the situation, reserve funds are created in CIC currency, and once a specific community agrees to support it, they are used to do all business in the village, even though the currency is not valid abroad.
Since this currency was first introduced in 2013, more than $ 147,000 has been distributed in this way, with 39,000 people adopting this currency and making 276,000 massive blockchain transactions.
Over the past seven years, this activity has generated 1.5 million dollars in local trade, created 17% more jobs across the country in the process, increased school enrollment by 23%, enhanced food security by 78%, and reduced crime and corruption by 25%.
Yudono added:
The value of the blockchain here is to provide interchangeability.
One local currency is equal to one shilling and can be exchanged, but all transactions can be viewed transparently via the dashboard.
While villages do not usually have a bank or ATM machine, which means that people have to go to the nearest city to find one, while this system is available to everyone as long as they have a phone and it is not compulsory to have a smartphone.
Supporting transparency in trade exchange in Haiti:
The third blockchain initiative is being relied upon by the Haitian Ministry of Trade and Industry and funded by the World Bank as part of the Business Development and Investment project.
The goal of the initial pilot scheme, which was launched in the first quarter of 2019, was to use transparent commercial blockchain to settle the businesses of about 600 small farmers trying to sell mangoes, avocados and pineapples in developed markets, such as the United States.
The idea was that the R3 Corda blockchain-based system that went into effect in May would ensure producers pay the spot price of their fruits based on supply and demand rather than negotiation tactics as well as prevent them from being manipulated by middlemen.
Through the creation of a specially designed platform for this purpose, this platform allows consumers to scan the QR code of the fruits they wish to purchase to determine the farmer who produced
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