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Blockchain for NGOs
Gisli Olafsson - NetHope

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NetHope empowers
committed organizations to
change the world through
the power of technology.

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Agenda
• What is Blockchain?
• How can NGOs make use of it?
• Open discussions

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What is Blockchain?

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• Underlying technology for cryptocurrencies like Bitcoin
• Distributed Ledger Technology that is applicable to many sectors
• Combination of existing technologies like peer-to-peer networks and cryptography
What is Blockchain?

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Ledgers
• Ledgers have been used for centuries to
capture various types of transactions.
• Have certain issues:
• Centralized – one master copy
• Susceptible to tampering
• Require intermediaries
• Double-spend

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Distributed Ledger Technology
• A Distributed Ledger Technology System…
• enables a network of independent
participants to establish consensus around…
• the authoritative ordering of
cryptographically-signed transactions.
• These records are made persistent by
replicating the data across multiple nodes and
are…
• tamper evident by linking them to
cryptographic hashes…
• establishing an authoritative record in each
node.

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Distributed Ledger Technology

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Money transfers today

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Money transfer using DLT

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Centralized vs. Distributed

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• A network of nodes
• A shared ledger
• A consensus algorithm
Key components of DLT

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A Network of Nodes
• A node is set up on each of the computers
participating in the network.
• The node system operates via a peer-to-peer
network (aka, P2P).
• The network can be vast and widely geographically
distributed, but the nodes do need to be able to
communicate with each other.
• A node is typically directly connected to some, but
not all, of the other nodes.
• When one node sends a transaction to its peer
nodes, those peers then forward that transaction to
other peers, who in turn forward it to yet still others,
thereby reaching the entire network of nodes in
short order.

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A Shared Ledger
• The shared ledger is the data component that
resides in system.
• The nodes in the network update the data in the
ledger and the consensus algorithm manages the
system to assure that only one true version of the
ledger exists.
• The most common method for implementing a
shared ledger is through the use of a blockchain.
• As transactional data is received, it is grouped
together into units, called blocks.
• Each block is then verified and appended to the
previous block, thereby creating a chain of blocks.
• As a block is copied to the chain, it is distributed to
all the nodes in the network, thus keeping the copies
of the blockchain in harmony.

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A Consensus Algorithm
• The consensus algorithm sets the rules
for the system that determine how the
nodes will arrive at a single view of the
ledger.
• Different DLTs use different approaches
to consensus
• All consensus algorithms are there to
make sure that each node is qualified to
write their data to the ledger and to
assure there is a consistent and
trustworthy ledger.

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Smart Contracts
• A smart contract is a digitized
contract that is stored on the
blockchain
• Contains programming logic
that can automatically
execute the terms of the
contract.
• Smart contracts can be
looked at as the business
logic layer of the DLT stack

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How can NGOs use DLT?

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DLT and NGOs
• Use cases
• Crypto Philanthropy
• Financial Inclusion
• Cash Programming
• Monitoring and Evaluation
• Beneficiary Identification
• Land titling
• Supply chain tracking

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Financial Inclusion

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Crypto-Philanthropy

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Cash Programming
10%

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Monitoring and Evaluation
5-15%

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Land Titling

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Beneficiary Identification
1.1 BN

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Supply Chain

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DISCUSSION
What are you using DLT for?
What are the challenges we face in leveraging DLT?
How can we work together?

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WE ARE BUILDING A PLATFORM OF HOPE
NetHope brings together global leaders in the nonprofit and
technology sectors to tackle the world’s toughest challenges through
collaboration and innovation.
Together, we build a platform of hope for those who deliver aid and
those who receive it.

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