The identity of the recipients and reporting on the

The benefits of applying the distributed ledger technology to the non-profit sector
are numerous as highlighted above. Donors will have more trust in the sector and,
consequently, will be more willing to donate.
To stimulate transparency and traceability in the non-profit sector, we have devised
AidCoin, an ERC20 token that aims to become the preferred method to donate
transparently through the Ethereum blockchain and to access the AIDChain
platform. The adoption of cryptocurrencies will impact the way we donate in the
future and AidCoin is poised to play a leading role in this new era of fundraising.
Distributed Ledger Technology (DLT), or blockchain technology provides a shared
ledger which is immutable and allows for full transparency. Records on the blockchain
cannot be erased, so when used for cryptocurrency, blockchain technology
provides traceable accountability showing the exact flow of any coin in the ecosystem.
This tamper resistant system has clear use in the non-profit area: when
someone donates a token, they can see exactly how it was used throughout its
lifecycle.
The following are the types of transparency that can be designed for charitable
organizations:
• Tracking the actual use of funds, from the time money is donated up until its
conversion into local fiat currencies.
• Verification of the identity of the recipients and reporting on the blockchain
of their funds use.
• Tracking of administrative costs of nonprofits.
• Ensuring money earmarked for specific projects actually gets to those specific
projects.
• Comparison of the effectiveness of a euro spent in one charity versus a different
charity.
• Tracking of the investment policies of charities with the money they hold.
• Reduction in transaction costs of money transfer through cryptocurrency rather
than financial intermediaries. This becomes especially relevant when
dealing with organization that operate in developing countries, where transfer
fees for remittances can be as high as 20%3
The room for improvement and the unchartered territories of blockchain opportunities
are vast. Even those skeptical of the hype and speculation behind many cryptocurrency
investments, Barbas and Zuckerman concedes that cryptocurrencies 

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