Insights on Blockchain Adoption in Philanthropic Organizations: Research Findings and Path Forward
New Research Sheds Light on Blockchain Adoption in Philanthropic Organizations
A recent study conducted by Daniel Mihai at the Robert Kennedy College and University of Cumbria has revealed some interesting insights into the state of blockchain adoption in philanthropic and charitable organizations. The research, based on a survey of 281 charitable entities worldwide, paints a mixed picture of the current landscape.
According to the findings, the adoption of blockchain technology in the nonprofit sector closely mirrors that of the enterprise sector. While there are some success stories, such as improved real-time tracking of funds and streamlined donation processes, there are also significant challenges that organizations are facing.
One of the key disappointments highlighted in the research is the high transaction costs associated with blockchain technology. Despite the potential for lower costs on Layer 2 networks, many charities have not taken advantage of this opportunity. Additionally, the study found that only a third of organizations using blockchain technology saw it as useful in correlating donations with impact and outcomes.
On the positive side, the study revealed that nearly 70% of charities reported enhanced tracking of funds and increased donor trust as a result of blockchain adoption. However, the impact of recognition and reward NFTs was deemed “marginal” at best, indicating that there is still work to be done in engaging donors and building a sense of community.
Despite the challenges identified in the study, there is reason for optimism. The number of charitable organizations planning to implement blockchain technology is set to double in the next few years, with only 4% of respondents against the technology altogether. The main obstacle to adoption appears to be a lack of education, with many organizations unaware of the potential benefits of blockchain technology.
In order to drive adoption among nonprofits, the study suggests simplifying blockchain solutions and integrating them into existing systems that organizations are familiar with. This approach has already seen success with companies like PayPal and Stripe offering crypto payments as part of their standard offerings.
Overall, the future of blockchain adoption in philanthropic organizations looks promising, with a growing ecosystem of blockchain-centric platforms and organizations emerging to support the sector. As the study concludes, the future of doing good looks bright in the world of blockchain technology.
