Binance’s Changpeng Zhao Announces Blockchain-Based Donation Portal
In a space where it seems like everyone has their hands out for Bitcoin or some other altcoin, there are some, like cryptocurrency exchange, Binance, that are looking at how to give back to the community.
I was able to speak with Binance CEO, Changpeng Zhao (CZ) and Justin Sun, CEO of Tron Foundation, on why this collaboration is so crucial to the sustainability of this financially digital space.
What is the Blockchain Charity Foundation (BCF)?
Hatched from Binance, BCF is a not-for-profit organization dedicated to the advancement of blockchain-enabled philanthropy for the sole purpose of achieving global sustainable development.
In a space that is redefining how we not only use technology, but how we perceive our assets, money, and privacy, BCF aims to transform philanthropy by developing the world’s first decentralized charity foundation.
The question is how?
#1 –Reducing and/or Eliminating Poverty and Inequality
Whether we like it or not, we are globally connected. On my travels abroad, there is one thing I learned—think globally, but act locally.
It may seem like money is the glue that holds us all together, but in retrospect, it’s our relationships (economically, professionally, and socially).
One of the main goals BCF looks to address is reducing the global poverty rate.
”BCF will leverage blockchain technology to help fill the UN SDG funding gap and directly empower over one billion people living in poverty,” said Helen Hai, UNIDO Goodwill Ambassador for Industrialization in Africa and Head of BCF.
“We believe poverty is not a destiny.”
#2 –Advance Sustainable Development
“If you look at the first few Sustainable Development Goals (SDGs)—poverty, hunger, health, and even education, these can be easily addressed or improved by the charity initiatives,” Zhao explained. “But, what we’re trying to do here, goes one level deeper. I believe that by improving transparency in charity, we will address all 17 goals, at a more fundamental layer.”
#3 –No HODLR Left Behind
Whether you are an investor, entrepreneur, artist, musician, public figure, or just an average-joe, nobody should be left behind.
In this age, you’re either on board with technology, or you’re not.
“The Blockchain is very uniquely situated to solve this transparency problem, because now you can track every donation and transaction from donor, all the way to the end-beneficiary,” Zhao described.
According to the Binance CEO, he doesn’t understand why the problem hasn’t been solved yet. “The solution is logical and clear; we should just solve it.”
Through BCF, Binance hopes to build a future where everyone can enjoy a technology that brings us closer together. As for millennials, Zhao had a special message for us.
“If we can increase transparency and blockchain adoption to this level, young millennials will view the Blockchain as the only way to invest and to engage with charity. They will not go back to the traditional methods containing less transparency and less efficiency. In 5-10 years, they will hopefully view the Blockchain as the only way to conduct charitable transactions.”
When I asked Zhao about how cybersecurity plays into this field, he told me that Binance is in the business with the highest demand for security. “Luckily for our company, we are already in that business; we will continue to apply similar security measures used at Binance, for the charity. There are many different ways to address cybersecurity and privacy issues.”
The Donation Portal
During his keynote, Zhao introduced the blockchain-enabled donation portal, describing the impact the Blockchain had on fundraising and donation distribution during disaster relief in West Japan last month.
In his keynote, Zhao explained that anything Binance is involved with, 100% of donations will go to the end beneficiaries, with all costs covered by Binance, the company, and the foundation.’
“I believe the biggest challenge for charities at this point, is non-transparency,” Zhao told me.
“Donors don’t have the visibility as to where their funds are going, and most donations do not reach their intended beneficiaries. This lack of transparency causes a lack of trust, further reducing the willingness for people to donate to charity funds in general.”
That’s where my conversation with Justin Sun, CEO of Tron Foundation, became extremely helpful. Sun emphasized to me that his motivation behind creating TRON was his belief that technology should be “fair and distributed.”
“This belief led to my engagement with BCF and the UN’s SDGs,” he added. “Blockchain is a quite collaborative environment, and together, we can accelerate the mobilization around charity within our industry.”
“All of us here have made the decision to be leaders in shaping blockchain technology for social good,” said Sun.
”[BCF] is taking substantial steps in that direction by increasing the transparency of donations so we can see where the goodwill of the donors is going and what impact it has.”
With TRON donating $3 million to BCF, Sun told me that it’s the communities that play a significant role when it comes to philanthropy. “Tron has decided to integrate the community into its core since it was first established back in 2017. Here we are, almost a year later, and our company has matured. We now have enough resources to contribute to causes like those BCF is engaged in, with the ability to leverage the vibrant community we have built to support these kinds of initiatives.”
BCF will also open a donation channel to support victims of the floods and landslides in Eastern Uganda.
The charity system will begin accepting donations immediately, with initial support for BNB, BTC and ETH cryptocurrencies.
To donate and learn more about BCF, visit https://www.binance.charity.