How to harness the power of crypto to help communities rebuild after natural disasters

Crypto’s impact in the wake of the tragic earthquakes in Turkey and Syria was not only felt through large donations, but through the responsive manner of this global community. Key crypto leaders and companies directed contributions to non-profit organizations that provided aid to victims and their families and supported local rescue efforts. Even more humiliating was the fact that non-profit organizations such as AFDA and the Red Crescent, which usually accept fiat donations, turned to crypto for their effectiveness.

The use of technology is not an end in itself, but a means to an end, which is to help people in times of crisis. We must never forget that there are people who need our help the most. The crypto industry’s response to natural disasters highlights the need to improve compatibility between a crypto infrastructure and traditional economic processes.

The article is part of CoinDesk’s “BUILD Week.” Johnny Lyu is the CEO of KuCoin, the fifth largest cryptocurrency exchange launched in 2017.

When a natural disaster occurs, it can lead to whole communities being destroyed and in dire need of support and help. While people all over the world want to help, the process of traditional donation methods can often be frustratingly opaque, leaving questions about where resources go and whether they actually reach the people who need them most.

Immutable ledgers provide an unmatched level of transparency that traditional donation methods simply cannot match. With trust in institutions at an all-time low, according to the 2023 Edelman Trust Barometer, this level of transparency is desperately needed. In our complex society, trust is buried deeper under mountains of obscurity. This seemingly vague feeling can be quantified; the report says that only 44% of respondents have confidence in institutions, down from 53% in 2019.

But it’s not just transparency that makes crypto donations so impactful. With the ability to provide traceability and efficiency, blockchain technology offers a unique solution to the problems plaguing traditional donation methods. With the use of smart contracts, which ensure that funds are only released when predetermined conditions specified in the contract are met, crypto donations provide an unprecedented level of accountability.

The power of crypto donations has already made a significant impact, bringing hope and relief to those in need. UNICEF has recognized the potential of cryptocurrency donations and launched a cryptocurrency fund to receive, hold and distribute donations in bitcoin (BTC) and ether (ETH).

By utilizing new technologies for the good of society, we can make a real difference in the world. And as we move towards blockchain ubiquity, the crypto community is more than willing to assist with current issues and make a real impact on the world.

However, it is not just about building critical use cases and striving for transparency and accountability. It is about building trust and confidence among those who are in dire need of support. By doing so, we can harness the power of technology, including crypto and blockchain, to create a stronger, fairer and safer world for all.