- The Stellar blockchain is revolutionizing the aid assistance process with borderless, low-cost, transparent, and near-instant settlements.
- Blockchain disbursements of cash assistance are yet another way the new technology expands financial access and improves lives.
In the latest report from the Stellar Development Foundation (SDF), the non-profit organization supporting the development of Stellar highlighted how the blockchain can be used as a tool for aid disbursement. Blockchain technology has thus far proven to be a digital revolution transforming the financial system, a system that influences humanitarian efforts all over the world.
A 2022 report showed that 1 in 23 people in the world needed humanitarian support. This clearly calls for efficiency in that it is- an instant, transparent, and borderless process. Current systems are lacking in these qualities but as highlighted by SDF, Stellar blockchain could salvage the situation.
"Blockchain disbursements of cash assistance improve local delivery for aid organizations, give real-time funds access to recipients, and reassure donors that cash is distributed to recipients efficiently."https://t.co/7G1I5u5I2z
— Tori Samples (@tori_samples) June 1, 2023
According to the post, leveraging the Stellar blockchain technology such as the Stellar Consensus Protocol and the Stellar Disbursement Platform, aid delivery can be achieved with efficiency and at scale. Here are some of the benefits highlighted;
- Instant Batch Disbursement- In times of crisis, speed is crucial, only by using blockchain technology can donors ensure near-instant aid assistance of cash delivery
- Transparency- Blockchain transactions are publicly accessible and would allow for end-to-end traceability of funds. This assures donors that their funds are used as intended.
- Fast and low cost- On top of operating 24/7 all year, the blockchain can achieve 10,000 transactions for less than 1 US cent in network fees. By saving on transactions, more funds can be directed to support basic needs.
- Accessibility- In digital form, senders and recipients do not need to get physical cash or go to a bank which could prove difficult in times of instability. With Stellar recipients only need to download a digital wallet.
- Portability- Funds received are portable which could be a key feature for those facing weather calamities or fleeing a region.
- Stability- Cryptocurrencies are highly volatile making them unreliable in times of emergency, but with Stellar, stablecoins can be utilized ensuring they can be redeemed 1:1 for US dollars.
At Consensus 2023, Dixon spoke on the use of blockchain and Web3 for humanitarian causes, mainly through Stellar Aid Assist (SAA). Unveiled to the public in December of 2022, the Stellar Aid Assist (SAA) seeks to provide aid organizations with a first-of-its-kind blockchain solution, for the facilitation of instant and transparent digital aid.
As CNF has reported, Stellar has been making strides in marginalized areas. The blockchain aims to bring financial inclusion to the unbanked, serving billions of people worldwide.
The numerous milestones achieved have marked Stellar as a revolutionary blockchain leading its peers. Unfortunately, this has done little for its native token XLM. Despite this, investors remain optimistic about a price surge in the short term.
