Technology 2 min read

3 Ways Blockchain Technology can Protect Against Corruption

Here we bring to you 3 ways that blockchain technology could aid in preventing corruption of financial system around the world.

Pixabay

Pixabay

Blockchain is the decentralized ledger that is the foundation for almost all cryptocurrencies.  It is a transparent, secure peer-to-peer network that records transactions in real time, giving it an ideal failsafe against forces of corruption.

Blockchain is a “trust machine,” or a repository of decentralized transactions and data, which a central authority such as a government cannot manipulate. Check out these three reasons why Blockchain technology could do away with the corruption that has afflicted conventional financial systems.

1. Blockchain Technology can Provide Transparency to the Financial World

Blockchain ledgers are public, meaning that financial institutions using blockchain would have to show where each dollar is spent, eliminating the possibility of fraud and under-the-table deals.

2. It Will Give Contracts Security and Accessibility

The open source nature of Blockchain could help people readily procure official documents like land titles. In addition, it could pave the way for secure, transparent voting systems for corporations and public elections alike.

As an open repository of data, citizens could track government spending, making it harder to pilfer or embezzle public funds. Blockchain could reassure the public that their tax dollars are being used responsibly.

3. It Could be a Massive Help in Developing Countries

Corruption is endemic in developing countries due to weaker political institutions and an inability for the average citizen to engage in politics.

Blockchain tech could ensure that money given to governments or charities is spent as intended. A U.S. start-up, BitGive, founded by Connie Gallippi, has launched a Blockchain-based application that allows donors and the public to see how non-profits are spending money.

The world of international funding can also benefit from blockchain. Using the technology, international companies and organizations providing direct investment to foreign entities can track how recipients are spending invested resources. The World Bank, for instance, provides billions of dollars in funding every year for developing and transitioning countries yet it is challenging to track exactly how the money is spent. A public ledger tracking spending would make it easier for the organization to follow the trail of every dollar, actually reducing chances of corruption.

Blockchain also has an application in improving democracy.  A start-up named Democracy Earth, based in Buenos Aires, Argentina aims to do just that. By creating open source voting software known as DemocracyOS, online voting has become more feasible.

Read More: How Humaniq is Using Blockchain to Join the Financial Revolution

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Lewis Mc Cahill

Lead Editor of Edgy.app, Lewis is a long time lover of all things written. He covers the biggest stories on AI, SEO, and how our world is changing for the better.

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