Crypto-Altruism: Some Institutional Economic Considerations
23 Pages Posted: 23 Aug 2018
Date Written: August 14, 2018
Abstract
There is growing interest in using distributed ledger technologies, such as blockchain, to support social assistance activities. Non-profit organisations, such as charities and philanthropic foundations, have come under closer scrutiny in the wake of highly publicised financial scandals. These developments have, in turn, corroded public trust in non-profits to facilitate the transfer of funds, goods and services from donors to beneficiaries at reasonable administrative cost. Blockchain, a distributed peer-to-peer ledger that records, stores and validates data and information using secure cryptographic techniques, is touted as a potential solution for non-profits to regain trust and improve their ability to meet their social missions. It is hypothesised that blockchain can harness distributed preferences and knowledge to enhance the social impact of non-profits, and improve reputational feedback mechanisms. Blockchain is suggested to improve non-profit organisational transparency, automate contractual processes to improve social impact, and reduce intermediation costs.
Keywords: blockchain, crypto-altruism, collective action, non-profit organizations, transaction cost
JEL Classification: D23, I3, L3, O33, O35
Suggested Citation: Suggested Citation