Blockchain has many different use cases far beyond cryptocurrency investments and trading. We witnessed one of them in the aftermath of the February 6 earthquakes: using cryptocurrencies to help people affected by disasters. A similar example was also seen in the charities to Ukraine last year: over $60 million worth of cryptocurrencies from all over the world were donated to Ukraine.
In fact, we can say that there has been a significant increase in online donations after the Covid-19 pandemic, which affected the whole world in 2020. Globally, many civil society organizations (CSOs) and charitable institutions accept donations in cryptocurrency. Also, UNICEF and Greenpeace are some organizations that accept donations in cryptocurrencies.
Blockchain enables charities to be delivered in a very short time, at low costs, across borders, and in a transparent manner. Thanks to the transparency of the transactions, everyone on the blockchain network can see a specific block contains data and the general description of this data. Thus, tracking the cash flow transparently in donations made on the blockchain becomes possible. At the same time, since there is no need for intermediaries, donations are completed faster and with less expense.
When it comes to donations, some donors may want their names to remain confidential. Thanks to the anonymous or pseudonymous nature (according to some people) of the blockchain, the identity of donors remains confidential. Because here, people make transactions with their public and private keys. It is almost impossible to connect the address generated from the public key and the person's real-world identity unless they reveal their identities themselves.
Another advantage of crypto donation is that it enables donating internationally, going beyond regional boundaries. We experienced this again after the earthquake: donations from abroad needed to arrive fast and cheap at Turkiye. With the creation of crypto asset wallets, donors from all over the world can donate directly to charitable institutions without the need for currency exchange or financial intermediaries. Moreover, in addition to these features and benefits mentioned above, some tax advantages are also being granted to donors in some countries.
Firstly, to make a cryptocurrency donation, the donor must have crypto assets. Individuals or institutions can donate crypto assets through centralized or decentralized exchanges (DEX) to Civil Society Organizations (CSOs) or charitable institutions. It is also necessary for crypto donations to know which cryptocurrencies will be accepted by the institution or organization.
After the intense earthquakes that occurred one after the other in the Pazarcık and Elbistan districts of Kahramanmaraş and affected ten provinces, there was great public demand for crypto donations. After the signature campaign, in which Web3 Technologies Association also participated, with the approval of MASAK, the Ahbap Association began to accept crypto donations. For this, the Ahbap Association began to collect crypto donations by creating a crypto wallet. The wallets BEP20, ERC20, and Avalanche were announced, respectively. Later, other aid organizations such as AFAD, Red Crescent, and Needs Map also began to accept crypto donations by creating crypto wallets. Thus, people who own an account on a crypto marketplace and a wallet became able to help earthquake victims via the blockchain.
Among the donations made to the crypto wallets created with the aim of charity, it was planned for the high-valued tokens to get transferred BtcTurk and exchanged into TL and for the lower-valued or risky ones to become exchanged into different assets through decentralized marketplaces. It was converted into Turkish lira and transferred to official donation accounts. Meanwhile, the following development occurred: On February 15, 2022, cryptocurrencies began to increase. For example, Bitcoin has gained worth by over 12%, while Ethereum has gained more than 10%. Thus, the value of collected donations also increased: the crypto assets in some crypto wallets for donations reached a worth of more than 3 million TL.
Among the donations made to the crypto wallets created with the aim of charity, it was planned for the high-valued tokens to get transferred BtcTurk and exchanged into TL and for the lower-valued or risky ones to become exchanged into different assets through decentralized marketplaces. It was converted into Turkish lira and transferred to official donation accounts. Meanwhile, the following development occurred: On February 15, 2022, cryptocurrencies began to increase. For example, Bitcoin has gained worth by over 12%, while Ethereum has gained more than 10%. Thus, the value of collected donations also increased: the crypto assets in some crypto wallets for donations reached a worth of more than 3 million TL.
