BCD Part 1 (Group c)

Group Members:
Harshanth Anantharajah TP062873
Ahmed Saadhin Saudulla TP062368
The Selected Business Industry
• The charity industry is a non-profit sector that focuses on raising funds and providing resources to support various social
causes and initiatives. Charities operate in various areas such as healthcare, education, disaster relief, poverty alleviation, and
environmental conservation. The charity industry relies heavily on donations from individuals, corporations, and
governments to fund their activities and programs.
• Charities aim to make a positive impact on society and address social and economic challenges such as poverty, inequality,
and environmental degradation. The charity industry is regulated by government agencies and non-governmental
organizations to ensure that funds are used for their intended purpose and that charities operate ethically and transparently.
Charities may employ staff, volunteers, and partnerships to carry out their activities and programs.
• Technology has revolutionized the charity industry, making it easier for charities to raise funds, promote their causes, and
engage with donors and supporters. Charity tracking is an important aspect of the education industry. It is essential to ensure
that donations made to educational institutions or organizations are utilized for the intended purpose.
• Donors need to have trust and confidence that their donations are making a difference and achieving the desired impact.
However, the traditional methods of charity tracking can be inefficient, time-consuming, and prone to errors.
• The integration of blockchain technology can bring about a secure, efficient, and transparent charity tracking system. This
proposal discusses the potential use case of blockchain for charity tracking in the education industry and proposes a solution
model.
Specific Use Case
There are currently existing issues with the way that charities operate, hence a blockchain-based charity tracking
system is suggested. Some of the current procedures of charity tracking includes:
• Manual record-keeping: Many charities still track donations and the usage of funds using manual record-
keeping, which can be time-consuming and error-prone (Aranha et al. 2019).
• Lack of transparency: Donors frequently don't know how their money is being utilized, which might make
them lose faith in the organization ( Bah and Fang 2020).
• Fraud: There have been instances of fraud in the charitable sector when funds were misappropriated or
misused, which can harm the charity's reputation and lower donations (Eisenberg et al. 2019).
• Lack of accountability: The existing charity tracking system frequently lacks accountability, which makes it
challenging to pinpoint and resolve problems with the usage of donations (Kopp and Good 2020).
• Inefficiency: The current charity tracking system may be ineffective, which might cause delays in the transfer
of cash and make it challenging to track the use of funds (Mohanty et al. 2020)
Purpose
Here are some of the purposes of the proposed blockchain-based charity tracking system:
❖To increase openness in the nonprofit industry by giving contributors access to real-time
information about how their contributions are being used.
❖To improve accountability, all charity-related transactions must be documented on an unchangeable
blockchain ledger that is simple to audit and review.
❖To improve the effectiveness and precision of donation tracking and management in order to
decrease fraud and improper management.
❖By giving donors a user-friendly interface for making donations and tracking their usage, the
donation process will be made more efficient.
❖To foster better accountability and transparency among nonprofit organisations in order to win over
more donors' trust.
Background Information
✓ In order to make sure that money are allocated for the correct purpose, charity tracking is essential in the education sector. The
system requires donors to join up with credentials, donate to a chosen charity, then monitor the utilization of their donation.
✓ Limitations of the current system could include a lack of accountability, openness, and trust. For instance, organizations may not
have a transparent record of how funds are disbursed, and donors may not be aware of how their donations are used. Blockchain has
the potential to create a decentralized, open, and safe system for tracking charities.
✓ By offering immutable records that are simple to access, trace, and verify via blockchain technology, donations can be used for their
intended purposes.
✓ One of the most important ways the charity sector contributes to solving the world's most severe social and economic problems is by
raising money. Charitable organization's rely on donations from people, businesses, and other organization's to fund their activities,
which may involve giving needy populations food, shelter, healthcare, education, and other critical services.
✓ The public's trust in the charity sector has been damaged by incidents of fraud, poor administration, and other forms of malpractice,
even though the majority of organization's are honest and well-run. These occurrences have involved instances of financial
embezzlement, misleading impact reporting, and other unethical behavior. One of the most important ways the charity sector
contributes to solving the world's most severe social and economic problems is by raising money.
✓ Charitable organisations rely on donations from people, businesses, and other organization's to fund their activities, which may
involve giving needy populations food, shelter, healthcare, education, and other critical services. The public's trust in the charity
sector has been damaged by incidents of fraud, poor administration, and other forms of malpractice, even though the majority of
organisations are honest and well-run. These occurrences have involved instances of financial embezzlement, misleading impact
reporting, and other unethical behaviour.
✓ Making sure donations are used transparently and responsibly is one of the sector's biggest issues. Donors
want to know that the charities they support are functioning ethically and openly, and that their donations are
being spent wisely and efficiently.
✓ There are some drawbacks to current charity monitoring systems, including as manual record-keeping, a lack
of transparency, and slowness. Due to these restrictions, it may be difficult to monitor how donations are
being utilized and make sure they are going towards the intended goal.
✓ Many of these problems could potentially be solved by blockchain technology. Blockchain can assist in
ensuring that all donations are accounted for and utilized in the most effective and efficient manner by
building an irreversible and transparent record of all transactions pertaining to a certain charity.
✓ The possibility of fraud, poor management, and other forms of malpractice can be decreased by using a
blockchain-based charity monitoring system to give donors real-time visibility into the use of their donations
and to help charities expedite their donation management procedures. This can boost donors' trust and
confidence in the nonprofit sector and assist to ensure that charities can keep doing the important work of
aiding needy people all over the world.
Importance of the issue
oFor charitable organizations to continue to have the support of the
general public, accountability and openness in the sector are essential.
o It might be difficult to track the use of gifts and make sure they are
being used for their intended purpose because current charity tracking
systems have limitations.
o By generating an irreversible and transparent database of all
transactions pertaining to a certain charity, blockchain technology
offers a potential answer to these problems.
Data Analysis

• A decentralized and secure system for

tracking donations to charities can be
provided by blockchain technology.
Blockchain technology can promote
trust, transparency, and accountability,
guaranteeing that gifts are used for their
intended purposes. Blockchain can offer
an unchangeable record of every
transaction, making it simple to follow
the movement of money and confirm
money was allocated as intended. This
can lower the likelihood of fraud,
corruption, and poor management by
increasing openness, accountability, and
trust in the system. Here is an illustration
of data analysis.
Analysis Solution Model
• Donor Registration: Donors create a unique digital
identity that is stored on the blockchain by registering
with the system using their credentials.
• Donation: Through the system, donors can make
donations to the chosen charity, and the transaction is
recorded on the blockchain to guarantee immutability
and transparency.
• Fund Allocation and Usage Tracking: The charity
organization can use the blockchain to trace the use of
funds in real-time, ensuring that donations are utilized
properly and profitably.
• Reporting: The system creates reports on the usage of
the funds that donors and charitable organizations can
access, enhancing accountability and transparency.
Benefits
➢ Increased transparency: Donors can see exactly how their gifts are being used thanks to
blockchain-based charity tracking systems that can track donations and expenses in real-time.

➢ Enhanced accountability: As blockchain is decentralized and all transactions are visible and
traceable, there is less chance of fraud, and charities are held accountable for their deeds.

➢ Increased efficiency: Charities may automate record-keeping and lessen the administrative load of
manually tracking donations and spending by utilizing blockchain, which saves time and money.

➢ Improved public trust: By providing transparency, accountability, and effective administration of

donations—essential for the long-term sustainability of charitable organizations—a blockchain-
based charity monitoring system can help rebuild public trust in the industry.
Conclusion
⃀ In conclusion, there are a number of problems with the way that charities are now run that could hurt their
reputation and make it harder for contributors to support the causes they care about. A potential answer to
these issues, though, is the incorporation of blockchain technology into charity tracking systems.
⃀ A blockchain-based charity tracking system can guarantee openness, accountability, efficiency, and
increased public trust in the nonprofit sector by offering a decentralized and transparent record of all
transactions connected to a certain organization's advantages of utilizing blockchain technology for charity
tracking are significant, even though there may be some obstacles to its adoption, including as technical
complexity, expense, and regulatory issues.
⃀ Blockchain-based charity tracking systems may become a crucial tool for organizations looking to enhance
their operations and gain donors' trust as transparency and accountability in the charity sector become more
and more important.
⃀ In conclusion, a blockchain-based tracking system for charities has the potential to revolutionize how they
work and connect with their supporters, fostering more trust, openness, and accountability in the industry.
Because it makes it possible for charity organizations to track and handle donations more successfully and
effectively, it has the potential to have a good impact on society.
References
• Huckle, S., & White, M. (2016). Blockchain technology: principles and applications. In Research handbook
on digital transformations (pp. 225-253).
• Edward Elgar Publishing. Swan, M. (2015). Blockchain: blueprint for a new economy.
• O'Reilly Media, Inc. Tapscott, D., & Tapscott, A. (2016). Blockchain revolution: how the technology behind
bitcoin is changing money, business, and the world.
• Penguin. Yli-Huumo, J., Ko, D., Choi, S., Park, S., & Smolander, K. (2016). Where is current research on
blockchain technology?—A systematic review.
• PloS one, 11(10), e0163477. Böhme, R., Christin, N., Edelman, B., & Moore, T. (2015). Bitcoin: economics,
technology, and governance. Journal of Economic Perspectives, 29(2), 213-238.