Abstract : Binance took the initiative to give up huge profits and announced that it would donate all the listing fees to BCF, and then the outside doubts gradually dissipated.
In July 2018, Binance Blockchain Charity Foundation (BCF) was established.
As a non-profit organization under Binance ecosystem, Binance Charity has taken the “charity and transparency” as a breakthrough, and it has done what traditional charities can't do – donations directly given to beneficiaries by creating a crypto digital wallet for individuals.
In less than one year, BCF did three “tiny” things, but these three things made the blueprint of BCF begin to grow. First of all, Zhao Changpeng repeatedly spoke through large-scale meetings of the United Nations to strengthen the international influence of BCF; Second, a charity platform of 100% transparency was built to ensure that all donations are running on blockchain; Third, BCF Children Project was landed in Uganda, which provided free lunch for local children.
At that time, BCF was seen as a market tool for the global expansion of the Binance, rather than a true charity organization. Until the end of October last year, Binance took the initiative to give up huge profits and announced that it would donate all the listing fees to BCF, and then the outside doubts gradually dissipated.
Athena Yu, executive director of BCF, said in an interview, “Charity is charity. It is not linked to any business.”
Uganda Minister of Education said, “The public has begun to accept charity in the blockchain.”
On October 11, 2018, severe landslides and flooding occurred in eastern Uganda, killing at least 51 people, including many children; and as many as 400 people were missing. After the floods, the living environment of more than 10,000 people had been seriously affected
Under this circumstance, the Ugandan government has taken the initiative to provide relief needs to BCF. After the project review and investigations in the disaster-stricken areas, the two sides reached an agreement. Disaster Relief in Bududa, the first charity project of BCF, Uganda, was started. Subsequently, Binance Children's Project was officially launched in Singapore in January 2019.
Haiyu, the head of BCF, knows that children have always been the most vulnerable group in the face of problems such as disease, hunger and education imbalance. In Uganda, where GDP per capita is only $600, “food is not enough” has become the root cause of most social problems.
In some local areas of Uganda, children often drop out of school because they cannot afford food. There are many students at the beginning of every school year, but the hungry children can't focus and study in the classrooms. As a result, there are fewer and fewer children in the school gradually.
After careful planning, BCF launched a project called “Binance Blockchain Children’s Lunch” supported by blockchain technology in Kampala, the capital of Uganda, and received support from Zcoin, IOST, TRON, CRYPTO.com, Bloq and other institutions.
At the credit level of charity, the blockchain gives a new path of exploration. With the support of BCF, local students in Uganda can receive donations from the outside through the digital wallet, thus realizing the “donator-to-beneficiary” donation model. As for how to distribute the money, you can directly refer to the original intelligent contract, the transfer payment will be made according to the established rules and the payment will be publicly confirmed without human intervention.
Because of the “traceable” feature of the blockchain itself, the source and destination of all the donations are carried out in blockchain. The transactions are completely transparent, which avoid corruption and misappropriation of donations.
According to official information，it shows that Binance Blockchain Children’s Lunch Project has raised a total of 300,000 US dollars. At the end of May, the final beneficiaries reached to 4,500 people.
Athena told Chaindd, a Chinese blockchain APP, Binance Blockchain Children’s Lunch Project not only gives children free lunch, but also gives them hope and opportunities to return to school.
The Jolly Mercy Learning Center is the first beneficiary school for the Binance Blockchain Children’s Lunch Project. At the opening ceremony organized by BCF, Uganda’s Minister of Primary Education H.E.Rosemary Nansubuga Seninde also came to the school.
Minister Seninde saw the start Binance Children Project in Uganda as an important milestone, proving that the public began to accept innovative charity. It will help to further raise awareness of the gap between supply and demand, popularize the application of blockchain technology, and significantly improve the level of primary education.
Seninde hopes to return to school in May and June to observe the changes of children.
Cryptocurrency opens up the charity supply chain. Supplier: this is real money
The operational process of BCF project is as follows:
“The money is transferred directly to the beneficiary’s wallet address. The beneficiary then transfers the digital currency received to the supplier. The supplier delivers the materials to the school according to the student’s needs, and then converts the digital currency into legal tender from the Ugandan Exchange.”
In this process, the most important thing is whether the supplier recognizes cryptocurrency. If they do not accept payments in cryptocurrency, the entire process will not be implemented.
“Suppliers were very alert at the beginning. Digital currency can't be seen or touched. Will it be a scam?” Athena told Chaindd that suppliers were afraid of the risks brought by price fluctuations of digital currencies. These worries are understandable, which are also the most difficult psychological defense they have to break.
Vincent is the first supplier of Binance Children Project. He is a young man whose main job is to collect potatoes at the vegetable market. Due to the long-term involvement in the food supply of charitable projects, Vincent has always had a good relationship with the local government and some charitable organizations. In the long run, his credibility has been recognized.
Like everyone else, Vincent was hesitated to trade in cryptocurrency in the beginning. But he learned about cryptocurrency and knew that the Binance was an organization with good reputation in the industry, so he decided to cooperate and see.
When Vincent was going to exchange cryptocurrency into legal currency on the Ugandan legal currency trading platform, he was very nervous. When the money was transferred to his bank account, he said excitedly: "this is the real money."
Athena said, "At the end of the project cooperation on March, I talked to Vincent and he has become a very determined supporter."
After this transfer experience, Vincent began to promote blockchain and digital currency payment to more friends and business partners. But he hopes to have more digital currency usage scenarios than just charity projects.
Vincent's experiences and concerns are what BCF has always concerned. How to get rid of the legal currency and use the "currency standard" method to make charitable donations? How to avoid price fluctuations in cryptocurrencies?
We can imagine one day in advance: cryptocurrency can be used in a wide variety of scenarios and all transactions are completed through blockchain transparently and traceably throughout the whole process. All on-chain donations use “stablecoins”, so people no longer need to worry about the big price fluctuation of cryptocurrency.
In practice, “blockchain + charity” still has a long way to go.
Strictly speaking, most of the “blockchain+charity” platforms do not really make sense of the blockchain. They often firstly raise cryptocurrency then convert the cryptocurrency into equivalent legal currency, and finally use the legal currency for the purchase and donation of materials.
This is not much different from traditional charitable donation. The children who are funded are always in a “passive acceptance” state. They cannot express their demands directly to the outside world and the outside world does not know what the children’s real needs are. In addition, due to the process of digital currency exchange for legal currency, the blockchain cannot complete the closed loop for the tracking of funds, and there will still be corruption and misappropriation of donations. Therefore, getting the money directly to the beneficiary is the key to solving this problem.
In order to directly reach “the ultimate beneficiary”, the members of BCF team went deep into the front line, found the children themselves, and created a digital wallet for each of them.
But the actual situation is much more serious than what is thought. Aside from the local people’s lack of awareness of blockchains and d cryptocurrency, hardware has become a major factor constraining the emergence of digital currency wallets in the local area.
Athena told Chaindd that most locals do not have bank accounts and are limited by the state of the local communications infrastructure, and people remain in an environment where they are still using "functional phones."
In order to improve the convenience of transactions, these functional opportunities use the built-in USSD (Mobile Payment Code Interface) technology to meet personal payment needs.
Under the harsh local conditions, BCF temporarily chose to donate computers to local schools to help children open cryptocurrency wallet accounts. However, the current solution is not the most ideal. In the future, the company hopes that local people can use the function machine to complete the digital currency. Chaindd has learned that the company is currently conducting relevant technical research.
You are not forgotten by the world because of cryptocurrency wallet
James Kimera Ssekiwanuka is the principal of the Jolly Mercy Learning Center.He said that the root cause of social problems is "ignorance." Technology can not only solve the problem of transparency, but also help children build awareness from an early age. We are letting them know that by opening a wallet, such a small thing can be connected with other people in the world, rather than being forgotten in the corner by the world.
Athena said that the charity staff and volunteers are constantly disseminating knowledge about the blockchain and digital economy to governments, schools and project implementation agencies. In fact, technology is not far from them. Athena also said that technology itself has no good or bad points, but depends on how it is applied, BCF hopes to use technology to guide the industry to do good things and benefit more people.
In the process of charity projects, the government, young entrepreneurs, and ultimate beneficiaries have successively become “students” of BCF. Moreover, their curiosity about the blockchain was unexpected.
For the government, they want to recognize the role of the blockchain in the economic transformation. For young entrepreneurs, they hope to understand the commercial application of the blockchain by understanding the latest technology, thus make the existing business bigger and stronger. For the ultimate beneficiaries, they don't want to be thrown out of the world forever.
A few days ago, ten most influential people in the blockchain industry joined the “BCF Children Program” as goodwill ambassadors. They will work closely with BCF to appeal to the public to focus on blockchain charity and gather the power of the entire industry to promote the blockchain in the charity industry. These ambassadors include Zhao Changpeng, He Yi, Wu Jihan, Da Hongfei, Sun Yuchen, Michael Arrington, Dovey Wan and other famous people in the industry.
To date, BCF has provided free lunches to approximately 3,700 teachers and students in 10 schools in Uganda. The Goodwill Ambassadors Project will support BCF to expand its project and establish a wider-ranged project called “Coin Child Safety” in Africa, providing assistance to more than 100,000 children in 160 schools. In addition to addressing hunger, the project will cover a wider range of materials, including stationery, textbooks, shared LED screens, solar panels and sanitary napkins for children in 160 schools.