Updated: Sep 4, 2019
During the past couple of years, terms like bitcoin and other cryptocurrencies have become commonplace. The advancement underlying these “digital” currencies – referred to as blockchain technology – has the potential to completely alter how our world does business.
Blockchain is based off of cryptography, an advanced form of encryption. Utilizing a cryptographic process, blockchain technology creates a running tab of information that is quite literally impossible to edit or alter after it is published.
At first glance, such an advancement presents intriguing opportunities for industries like, for example, banking and insurance. But blockchain applications are not limited to the financial services industries.
Blockchain technology is useful in any situation where you would like to have a permanent ledger of information. From non-profits to government agencies, proper application of this technology could assist in providing clarity to sectors throughout the global economy.
When one considers a public and unchangeable log, the greater value of blockchain technology becomes clearer: creating transparency and trust, at scale.
For example, one of the biggest issues faced by small non-profits organizations is convincing potential donors that they are a legitimate organization. In today’s internet economy, it is easy for anyone to create a non-profit serving any sort of cause.
For those looking to set their organization apart from the crowd, utilizing a public blockchain to track expenditures would be a great way to foster trust with those looking to support their cause. Think of it as “permanent crowdfunding.”
Additionally, allowing access to such information would make fraud (another common non-profit risk) all the more difficult.
Such measures may seem unprecedented at this moment in time, but the only way that such transparency will become normalized is if trailblazing individuals and organizations take the steps necessary to adopt this innovative technology.
At ZAO, we clearly are Technologies For Good enthusiasts;
As we believe in the idea of a decentralized economy, the underlying technology itself is here to stay.
We want to leverage blockchain technology in a way that allows for the betterment of society, bringing trust and transparency, and start to innovate its real potential.
Stay tuned until we release some few more posts related to how ZAOInvest will apply blockchain technologies into the Impact Investing industry.