The Future Is Blockchain & Impact Investing

We’ve looked at the amazing things that can be done when impact investing joins forces with big data and artificial intelligence. These are not the only team ups impact investing is forming and its partnership with blockchain may be the most important pairing it makes.

Though it started as a technology interlinked with bitcoin, blockchain is now an important and revolutionary technology that is being used to remake so many industries.  This makes perfect sense when you think about the immense potential found in the distributed ledger system. Look at the evolution of real estate, smart contracts and insurance: three areas that are already showing just how important blockchain technology is.

The new team up of blockchain and impact investing is going to do amazing things. Join me this week as I look at what the future holds.

Given the name it probably shouldn’t surprise you to learn that the Blockchain for Social Impact Coalition is using blockchain technology to further social impact investing. The coalition, founded by ConsenSys, seeks to nurture blockchain products that aim to solve our environmental and social issues.

The team running the coalition have a strong background in finance, technology and social justice, giving them the collective knowledge needed to lead the charge in using blockchain and FinTech to better the world.

A similar group is Blockchain for Change, a marketplace aimed at connecting the underserved and the services they need. Their Fummi app serves as a window for clients, giving them access to a digital ID that will help them access the services they need.

Groups like these will help the blockchain-impact investing team move forward and reach as many people as possible—and this is a great thing.

Another positive aspect coming from the one-two blockchain impact investing punch is the ability to overcome issues that have plagued the donation industry.

Thanks to corruption and controversy, many people do not hold charitable organizations in high regard. After all, we donate with a desire to make a positive impact and help people in need. The revelation that a large percentage of donations are going to the salaries of executives or are lost in bureaucracy can dramatically reduce our desire to continue to support the cause.

There is a movement to make social funding and impact investing more transparent, helping to increase the efficiency and level of trust, and blockchain is the technology forming its base.

Alice, for example, uses its platform to help non-profit organizations run their campaigns. Using smart contract technology and tokenization, the platform records and presents data from non-profit campaigns, increasing their transparency and making them more accessible to the common donator. Properly used, this system will help bring an element of trust back to the non-profit market. Not only that but the Alice platform reduces administrative and transaction costs.

Platforms like these serve as an example of why blockchain and impact investing should team up. Together they can help quell people’s hesitancy towards philanthropy.

Great things will happen now that blockchain and impact investing are working together. The two technologies will bring out the best in each other and help worthy causes move forward in their quest to help the less fortunate.

Various groups are realizing this and are taking the right steps to form initiatives to properly nurture and develop these projects

With the right people using the right technology we will be able to reach those who need help in a way that makes the biggest and best impact—and this is an amazing thing.