World’s first crypto charity has been released, the platform accepts Bitcoin Cash and several other cryptocurrency coins. Coin4Coins, world’s first crypto charity supplies clothing for those in need and it is situated in Toronto, Canada. The platform wants to introduce people to Bitcoin Cash along with supporting the needy people. By this, two humanitarian goals are being fulfilled.
How Coin4Clothes works?
Crypto charity donations are being gathered from all around the globe and then these donations are utilized for purchasing clothes for people in the community. Then, all the clothes are being donated to charities located in Toronto. Coin4Clothes only spends and accepts cryptocurrency and all the donations made by users are especially tracked and monitored on the financials page. All the people who have donated their used clothing also get chance to earn BCH.
When compared with various other charities, due to 95% administrative burden, 100% of BCH is spend on the purchase of clothes belonging to the community. One of the amazing feature provided by charity is that money can be sent to the address nearly for free. Due to traditional centralized charity models, money was also being lost in expensive banking systems, accounting methods which simply means that fraction of money only reached to the people who actually need it.
Advantages of DLT in Charity Sector
With the help of cryptocurrency and DLT in the charity sector, some of the issues linked to the centralized model can be resolved. All the transactions are fully transparent and funds are always available. Accounting processes can be made efficient and any chances of corruption can be reduced due to the advantages of distributed ledger technology.
Oxfam scandal is the recent one, out of various system failures occurred at different charity sectors. The main reason behind system failure could be lack of transparency and immutability in the existing charity infrastructure. Various global international charities would be considered outdated because small regional charities take cryptocurrency minus the unnecessary regulatory, legal and any financial overhead.
As per details by Bloomberg, blockchain used for charity is extremely complex. But decentralized models established on DLT and only receiving and spending cryptocurrency can move easily. For example, Coin4Clothes can be taken into consideration. The platform is using a decentralized and non-interventionist solution, hence it will have a large influence on the lives of the people.