Improving social assistance processes with blockchain and smart contracts: An innovative system proposal

Philanthropy is widely regarded as a moral obligation, with significant funds circulated globally for charity. However, the lack of transparency in fundraising often leads to a loss of trust from donors toward charitable organizations. Many charities face challenges like poor management, high operational costs, and a lack of transparency in donation flow, causing donors to feel insecure about how their contributions are utilized. Blockchain technology offers a powerful solution by providing transparency, accountability, and efficiency in distributing social assistance. This thesis aims to organize aid distribution using the secure and traceable nature of the Ethereum blockchain. A hybrid decentralized application (h-DApp) was developed, integrating centralized and decentralized components to improve user interaction and donation efficiency. Smart contracts were employed, enabling donors to automatically manage their contributions based on predefined conditions, allowing them to specify how their donations are used. The system also facilitates the direct distribution of in-kind donations via QR codes through partner companies, eliminating intermediaries. This approach ensures donations are delivered quickly and directly to those in need, reducing logistical costs and ensuring that aid reaches its intended recipients. Additionally, a need-based scoring system was developed to ensure fair and appropriate distribution of aid. By addressing the shortcomings of traditional methods, this blockchain-based approach enhances the efficiency of social aid distribution. The thesis is expected to serve as a model for future social assistance applications.