The World Food Programme’s ‘Building Blocks’ project wants to harness blockchain technology for humanitarian cooperation

Day 3 of the London Blockchain Conference 2023 (LBC 2023) kicked off on an upbeat note, with a morning talk by the Head of Emerging Technologies at the UN’s World Food Program (WFP), Houman Haddad, outlining a humanitarian humanitarian organization. using the blockchain that makes a positive difference: “Building Blocks.”

There are few causes more worthy than fighting famine, hunger and global inequality. On the last day of LBC 2023, the business strategy stage audience seemed delighted to hear that the technology they had all brought to the QEII Center could be used for humanitarian purposes.

Speaker Houman Haddad is Head of Emerging Technologies at the UN’s WFP and the founder of WFP’s “Building Blocks” (BB) project, which seeks to harness the power of blockchain to promote inter-agency collaboration and drive efficiencies.

“Building Blocks is a value transfer system that can be used by multiple humanitarian organizations and people seeking help to better coordinate and record the transfer of cash to where it is needed,” Haddad explained.

It is currently the world’s largest implementation of blockchain technology for humanitarian aid. Building Block’s aim is to harmonize humanitarian efforts, empower individuals and optimize aid distribution; it does this by using the transparency and efficiency of blockchain technology to create fairer outcomes and seamless access for those facing adversity.

“Since 2009 and 2010, there has been a shift from in-kind (products like rice, grain, etc.) to cash-based humanitarian structures,” Haddad said. “This adds an element of dignity, it’s more cost-effective and can create a multiplier effect that brings more money to the local economy.”

Of course, cash-based humanitarianism comes with its own set of considerations, such as the risk of inflation when putting money into an economy, monitoring whether it is being used effectively, and so on.

Despite this, the cash-based aid system has grown exponentially since 2009, and with it the need for coordination of the cash process has also increased.

This has created what Haddad called a “war of systems” – the systems are multiple competing, or uncoordinated, organizations trying to do the same work, often leading to a less fair or well-organized distribution of aid.

To address this, in 2016 Haddad and his colleagues at WFP created “Building Blocks” to overcome some of these systems’ challenges through the use of blockchain technology.

Essentially, building blocks act as a connection of 12 smart contracts, the wallet itself is also a smart contract. But Haddad was keen to emphasize that due to the nature of the blockchain, it is not owned by the WFP or any organization or group of individuals.

“It’s a co-owned network that increases visibility with the people we serve, and the people who need help can ask for it when needed,” he explained.

Haddad stated, from his extensive experience in the humanitarian field, that the application “improves equitable distribution.” But the proof is in the pudding, and he provided some promising statistics to back up this claim.

Since it started operating in 2017, in a trial situation in Pakistan, Building Blocks now serves 4 million people every month; USD 500 million has been transferred to where it is needed; and USD 100 million of duplication has been prevented – duplication is short for “unintended systems overlap”, where assistance ends up in some places due to a lack of coordination by humanitarian organizations, instead of being properly dispersed and shared.

Another advantage of the Building Blocks application is that it is completely free for humanitarian organizations.

These are extremely positive signs of a real use case for blockchain in the humanitarian field, showing how the technology can be used for higher goals than creating more wealth for the wealthy.

Haddad admitted that there are still hurdles to overcome, one being that “the technology is considered first world.” This means that to use it properly, you need smartphones, internet, knowledge of how to use a wallet, etc. This can, and has, been overcome through education and provision of equipment, and can also be circumvented by using trusted partners to maintain the wallet for those who do not have access. But it is still not an ideal system, more of a work in progress that shows positive signs and results.

As for where the technology could go, Haddad addressed the exciting possibilities it could offer in the refugee kingdom, where people are forced to travel from place to place, sometimes for up to 15 years. During this time, they may lose access to their identity and money.

“Digital ID can really help refugees,” Haddad suggested, and the ability to access help wherever there is internet could also be a game changer.

Whether this will succeed is something we can only hope, but the warm response Haddad’s talk and project received from the crowd at least suggests that there is a real desire among advocates and supporters of blockchain technology for it to provide a global, social good, as much as a financial.

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