The role of blockchain technology in natural disaster

Do not be under the wrong impression that blockchain technology has used only in the financial world. It is been successfully used in healthcare, art and entertainment industry, cloud computing and even in the philanthropy sector. Disaster management is one area where blockchain can be implemented to improve the reach and distribution of relief material.


Role of blockchain in disaster management

  1. To avoid red tape and bureaucracy: The biggest hurdle to disaster relief is a fraud of funds released for relief. It is a sad reality that this segment is wrought with bureaucracy and red tape that often the aid does not reach its destination. Organizations have since realized that if they built the disaster aid disbursement system on the blockchain technology they will be able to overcome the above-stated problems and also improve transparency and efficiency of funds disbursal. The technology will allow tracking the funds and the recipients successfully and reduce frauds in the process.
  2. Increase speed of funds transfer: Typically fund disbursal is a cumbersome and long procedure involving a lot of paperwork, letters, and This delays the release of funds when they are desperately needed. The decentralized nature of blockchain technology cuts through all this hassle and releases funds almost instantaneously to the NGOs and other organizations involved in disaster relief. The smart contract thus plays a vital role in saving lives.

A real-life example

The United Nations World Food Program has launched “building blocks” on blockchain in the Sindh Province of Pakistan. This is a pilot program where they tested the ability of blockchain to assist in food and cash transfer to beneficiaries. They deemed it successful as they were able to successfully code the transfers into the programs blockchain and record and authenticate each transaction.

Parting words

It is heartening to know that a technology deemed to be purely meant for financial purposes has found use in probably one of the most relevant areas in the current times. With the easy and timely disbursal of funds without any theft midway, relief is bound to reach those who need the most at the right time and save precious lives in the process.

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    Vanessa Chambers