Fighting hunger with Blockchain – Tank

Characteristic image courtesy of the United Nations World Food Program, photographer Mohammad Batah

The Building Blocks pilot of the World Food Program (WFP) is using blockchain in refugee camps across Jordan. Refugees can now enter grocery stores and buy food simply by looking at a small machine from the cash register: an iris scanner that reads biometric refugee data, then accesses and spends the WFP meal vouchers accurately from their linked accounts.

Building blocks started in 2016 and are changing the way money transfers work by moving the system from the banks to the blockchain. Blockchain is a digital accounting technology that tracks transactions and maintains an accurate record. The coupons of WFP blockchain system transfer based on Ethereum, a cryptocurrency, to refugees, and therefore refugees can use vouchers to shop.

Food vouchers and money transfers generally constitute an important part of international aid. They allow people to afford food locally and make their own purchasing decisions. In 2015, 9.3 million people received cash transfers from WFP.

Blockchain is already a word of family order in technological news cycles. According to Robert Opp, Director of Innovation and Change Management at WFP, "The interesting part is that these innovations, often developed for markets that are more interesting from a commercial point of view, have the potential to improve the lives of those who are more backward".

It already works on a large scale. Opp says: "All 106,000 Syrian refugees in the camps of Azraq and Zaatari now redeem their cash transfers on the blockchain-based system So far, more than $ 23.5 million of rights have been transferred to refugees through 1.1 million of transactions. "By March 2019, Opp expects additional 400,000 refugees to receive their assistance through a blockchain.

The implications are historical for humanitarian food assistance programs. The blockchain system improves the transparency, efficiency, security and speed of WFP services. Before the use of the blockchain, families sometimes needed to wait days for transfers from local banks and their identifying information was vulnerable in those institutions. Now, the WFP blockchain system encrypts refugee data and allows workers to transfer vouchers almost instantly once refugees are registered. Opp adds: "Because much of the code is" open source "and is examined by a much larger community than can be managed by a closed source code, it's actually safer. [than other transactions]".

For WFP, it has the additional benefits of saving 98 percent of the fees on banking transactions, as well as the money previously lost due to corruption as it passed through several agencies. Opp explains: "Transaction costs have been almost eliminated, offering donors a much better quality-price ratio." All this means that now WFP can give more meals to hungry people.

Opp also anticipates opportunities for collaboration for the benefit of refugees through blockchain technology. Expands, "We believe that a blockchain collaboration platform can benefit the entire humanitarian community for the first time, WFP and the United Nations program for women are now working together on blockchain, giving priority to innovative technology as one the drivers of change and to accelerate progress towards the emancipation of women on a larger scale ".

There are some criticisms of the system: some say that the current pilot is too small to see the benefits of blockchain use, that transaction costs can increase or that there are ethical dilemmas at play when testing new ones technologies on vulnerable populations. Zara Rahman, a researcher at the Berlin organization The Engine Room, is a supporter of caution, saying: "In general, it is essential that human rights workers remain critical and see beyond exaggeration. A certain tool might seem like the simplest option now, what about in two or five years? What would you do with data and who is its owner? "

But according to WFP, there is also the potential that the system could expand to help more refugees and in more ways. Houman Haddad, a WFP executive behind Building Blocks, anticipates a comprehensive identification system in which refugees could operate with an identification that is not dependent on any national authority. Several start-ups have taken over the cause of food aid delivery in several countries: Disberse and Devery are two companies that do just that.

Even Opp is optimistic. He hopes to adapt the blockchain to the uses of the supply chain and continues to look for ways to use technology at the forefront to help vulnerable people. He concludes, "We consider it imperative to try to exploit innovative digital technologies and we are already applying them to our work, as they have the potential to strengthen food systems, shorten humanitarian response times, provide more effective assistance, and extend additional funds. . "

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