The traditional charitable giving model is hindered by slow processes and a lack of transparency, leading to misallocation of funds and public scrutiny. Sandeep Nailwal, co-founder of Polygon Labs and founder of Blockchain for Impact, believes that blockchain technology can decentralize philanthropy, enhance speed and transparency, and eliminate the need for intermediaries. Blockchain can increase trust by recording and tracing every transaction, while smart contracts can automate the disbursement of funds based on real-world triggers. Some major charities, such as the Bill and Melinda Gates Foundation and the UNHCR, have already implemented blockchain solutions to improve aid delivery. However, there are regulatory, technical, and operational challenges that need to be addressed before decentralized philanthropy can become mainstream. Despite its benefits, scaling blockchain solutions compliantly remains a challenge that may require a blend of traditional and emerging frameworks.



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