Humanitarian Aid: How Blockchain Technology Can Help Refugees and Those in Developing Countries

Blockchain technology spans a variety of use cases, most well known are: transacting value, logistical support in the private and public sectors, and handling of information. However, blockchain tech can expand outside of business and government use cases and be applied into the social realm of improving the lives of individuals. Most notably, those who are poor or are in oppressed situations. This post will explore the magnitude of which blockchain tech can be successfully applied to help the many refugee crises around the world.

The news today is filled with coverings of global refugee crises. There are of course many refugees coming from Syria, but also from countries like Myanmar, Afghanistan, Somalia, and South Sudan. Aiding these refugees has been a priority of many developed countries, the United Nations, and NGOs. However, the refugee crises continue to get out of hand and the causes of them aren't being resolved. A large reason as to why people flee to a foreign country is because of an ongoing war in their homeland, or they flee to avoid persecution as is the case in Myanmar. Blockchain tech can't directly resolve these causes of the refugee crises because most of the time the ongoing situations in these countries require outside military intervention, negotiations, and economic support, etc. The application of blockchain tech in these instances (like providing foreign aid and making sure the money is being used in the most productive ways possible) are certainly viable and can help in resolving conflicts. On the other hand, such applications will only exist and operate at a lower and unrecognizable level like they do in logistical support (supply chains), which as we can see is the most universal use case scenario for blockchain right now.

Benefits of blockchain:

Although, there does exist a very functional way of using the blockchain in resolving the conflicts that cause the refugee crises in the first place. The article "Use Blockchain to Hold Assad Accountable" published by The WSJ articulates using the blockchain and other technologies to send/receive digital media while at the same time ensuring this media's authenticity and integrity, "the ability to authenticate the provenance of digital media could do more than enable documentation of atrocities. It could help international efforts to monitor elections, fight fraud, audit supply chains and enforce anti-corruption measures. It could also provide a defense against new technology that lets users manipulate and doctor videos in a way that looks real." Correctly identifying and then proving the root causes of the refugee crises is the first step in conflict resolution and blockchain tech can play a large role in doing so.

What the world needs to witness is blockchain tech being used directly with quantifiable results. The refugee crises are a good way to show the strength and impact that the blockchain can have. Another way in which the blockchain can be applied is to give refugees the ability to easily acquire much needed resources like food.

World Food Program's "Building Blocks"

For example, the World Food Program (WFP) is running a private blockchain called "Building Blocks" and its utilization is an interesting one as the "WFP’s system relies on biometric registration data from the United Nations High Commissioner for Refugees (UNHCR) and uses biometric technology for authentication purposes. Refugees purchase food from local supermarkets in the camp by using a scan of their eye instead of cash, vouchers or e-cards." Through their project "Building Blocks" the WFP uses a refugee's unique physical characteristic, in this case their eye, to identify them. The private blockchain is used to securely store each refugee's biometric information and also to quickly identify a given refugee so that they can acquire much needed resources from the market. The WFP's Director of Innovation and Change Management stated, "through blockchain, we aim to cut payment costs, better protect beneficiary data, control financial risks, and respond more rapidly in the wake of emergencies. Using blockchain can be a qualitative leap – not only for WFP, but for the entire humanitarian community." Incorporating this blockchain project into other humanitarian aid operations around the world will be very beneficial for the spread of this technology.

Mobile banking and blockchain implementation during construction of refugee camps

Another thing blockchain can do is provide each refugee a bank account, one which they can access very easily wherever they end up in the world. They would access it using their phones (2/3 of people without bank accounts have mobile phones), since 87% of refugees live in 2g-3g areas. Mobile banking running on blockchain is an easy and secure way to access a bank account that will allow refugees to better rebuild their lives financially. The blockchain certifies someones identity, thus allowing them to build credit and at the same time preventing fraudulent activity. Expanding outside the financial realm, whichever refugee camp an individual may end up in, along with their bank account the blockchain can store their I.D. and other important documents. The blockchain is border-less, highly secure, very easy to access, and many dApps are being built and already exist which can be used to assist refugees. Again, this can be applied to any other humanitarian aid operations, most notably inside developing countries.

It would be a good idea if refugee camps around the world utilize blockchain tech in their infrastructure. We've already seen how local markets use the blockchain to accept payments from refugees, and how humanitarian organizations use blockchain to help refugees maintain a secure identity. However, none of this would amount to anything if there wasn't a safe location for refugees to escape to. These camps are only meant to be a temporary solution since the best case scenario is to resolve the conflict that made refugees leave in the first place, which would then allow them to return home. However, resolving the underlying problem doesn't have an end date so refugee camps need to be built with longevity in mind. This means a camp where people have easy access to life's essentials, far from oppression and close to comfort. Sounds like an expensive infrastructure project right? Not if it includes blockchain tech and international support.

First is the gathering of capital to fund such a camp, which can easily be done using cryptocurrency payments (for obvious reasons). With capital in hand, the humanitarian organization (most likely operating under the U.N.) working alongside the government where such a camp is to be located will coordinate the construction process. Doing so will provide jobs to local citizens and improve the host country's economy. Using smart contracts in the development and construction process of such camps will significantly decrease processing fees and times, will allow for transparent and secure transactions, and will eliminate any degree of manipulation or fraud. Thus, creating these refugee camps can be done quickly and cheaply (not regarding the materials being used). The comfort aspect should be incorporated during the design phase, but there are plenty of dApps that can be implemented to make the stay more like a home and not a camp. Security need not be an issue as the world has an abundance of private contractors awaiting the job.

If designed, constructed, and operated efficiently with blockchain tech, refugee camps will provide a better stay for refugees so that they can comfortably and peacefully wait out the conflict occurring in their homeland. Permanently relocating and integrating refugees into a foreign country isn't good for that country's citizens or the refugees themselves. Although it may need to be an option for prolonged conflicts that have very long-term solutions. Nonetheless, blockchain tech can be used to aid the lives of refugees. Also, don't forget that everything mentioned above can be implemented in other humanitarian operations around the world, even refugee camps unoccupied by refugees can be turned into temporary relocation sites for disaster relief or even be used for poverty stricken areas inside certain countries. The great thing about blockchain tech is how universal and versatile it is. Applicable uses are boundless and it should certainly be used in the many refugee crises.