Innovation Brown Bag

Blockchain Technologies in the Humanitarian Sector

#disrupthunger @WFPInnovation WFP Innovation Accelerator

Poll
How much do you know about blockchain?
(please select one)

1. Know the word, know bitcoin, and nothing

more

2. I can name at least 5 popular

cryptocurrencies other than bitcoin (without
googling)

3. I understand Blockchain applications beyond

cryptocurrencies

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Agenda

01 Unpacking Blockchain

02 Watercooler - Blockchain Trivia

03 Blockchain Applications

04 Blockchain @ WFP

05 Questions & Answers

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Unpacking Blockchain
What is
Blockchain
"A technical way to
create trust used in
digital processes"

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Trust enables Scarcity (without intermediaries)

Internet of Information

Internet of Value

Notes:
● Cryptocurrencies is just one application
on top of this infrastructure
● Blockchain is a type of Distributed
Ledger Technology (DLT)

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What decentralization means to DLT?
Logically

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What decentralization means to DLT?
Logically

Architecturally (ex.)

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What decentralization means to DLT?
Logically
WFP UNHCR
Architecturally (ex.)

Politically (ex.)

External Local
Provider Government
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Practical Example: Value Transfers

Financial System as Trust Providers Technology acting as Trust Machine

Expensive May be a cheaper approach
Bonus Point: Programmable money

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Characteristics of DLT/Blockchain Networks

Transparent
Tamper-proof (not all of them)
Append-only

Resilient to
crash and dominance Different level of
energy consumption
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https://pixabay.com/illustrations/energy-efficiency-consumption-1616966/
Some Trends

NFT
Source: https://gigaconnect.org/patchwork-kingdoms/

Stablecoin

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Not without issues

Financial Risks
Black Markets Technology Bugs

Link with
outside
world

Illegal Transfers
Source: https://hbr.org/2018/06/what-blockchain-cant-do
WatercoolerApplications
- Blockchain Trivia
Blockchain Trivia #1
Bitcoin is the first blockchain application & cryptocurrency
created by (please select one):

1. Yoko Ono

2. Aya Nakamura

3. Satoshi Nakamoto

4. Kazaya Kamenashi
Blockchain Trivia #2
This cryptocurrency is the 2nd largest public
blockchain based on market cap created by
Canadian-based Vitalik Buterin (please select one):

1. Bitcoin Cash

2. Ethereum

3. Algorand

4. Celo
Social Impact Applications
 Impact of Blockchain
Central Bank
Digital Currencies

Crypto Asset Crypto

Remittances Philanthropy

Crypto Asset Decentralized

Cash-Based Transfers Disaster
Recovery

Decentralized
Decentralized
(Financial) Inclusion
Supply Chain

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Emergency Aid - Ukraine Crypto Relief Fund
● At the outset of the conflict, Ukrainian officials published their digital wallet
addresses on Twitter to enable donors to send their contributions.

● Since then, more than $100m worth of crypto has been raised through
the “Crypto Fund for Ukraine” run by Michael Chobanian, founder of the
Ukrainian crypto exchange Kuna, which accounts for 60 percent of all
donations.

● Crypto donations are funding daily rations and bullet-proof vests and
helmets.

● The value of crypto donations to Ukraine lies in the fact that they are less
influenced by geopolitical and macroeconomic factors.

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Impact Market
Impact Market is a
decentralized poverty
alleviation protocol that allows
the creation and distribution
of UBI - unconditional basic
income between communities
and their beneficiaries,
according to their needs.

Claimed as UBI - $2M

Countries - 32
Beneficiaries - 34.3K
Communities - 198

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Seedtrace - Building transparent supply chain
for Cocoa farmers
Koa and Seedtrace set out to solve one of the most challenging problems
in the cocoa industry. Unfair labor conditions and exploitation along the
supply chains of our favorite products remain a major challenge in global
trade. The goal of this collaboration is to prove each and every payment made
to cocoa farmers in Ghana, while tracing cocoa batches back to their source.
The supply chain data is easily accessible to B2B buyers and consumers,
and can be clearly communicated through the seedtrace platform. With a
QR code scan, buyers of chocolate bars are able to verify in an instant, how
much farmers received from their purchase.

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Practical Limitations of Blockchain

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 Blockchain @WFP
Applications
Questions & Answers
Building Blocks - from pilot to scale
Bangladesh | Jordan | Lebanon

WFP’s Building Blocks project is the humanitarian sector’s largest

blockchain-based cash distribution system, a beneficiary-centered
neutral humanitarian blockchain network aimed at harmonizing and
optimizing the collective humanitarian assistance and maximizing the
impact for the people we serve.

It provides recipients with a blockchain-based e-wallet to make cash

transfers faster, cheaper and more secure, allowing WFP to transact
directly without the need for banks or other financial institutions.

assisting over processed over

1 million US$ 350 million
Syrian and Rohingya cash based transfers through 15
refugees in Jordan and million transactions
Bangladesh

CONFIDENTIAL

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Digital & remote work:
EMPACT, cLabs, Appen, Corsali

A mobile microwork platform that gives anyone in the world

with a low-end smartphone the ability to safely earn money
from home, leveraging stablecoin crypto-payments with
Celo.

EMPACT has already impacted 55,000 people in Iraq,

Lebanon, Kenya, Colombia and Turkey through online,
remote, local and global work.

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Next Steps…
Helping you with your Blockchain needs

Join our upcoming deep dive and hands-on workshops on Blockchain

01 WORKSHOPS
Topics covered: financial inclusion, financial aid & emergency, supply chain, and others
Apply for our call for application to incubate promising blockchain startups and
02 INCUBATION ideas

Help us match promising startups/blockchain solutions that can meet your

03 COLLABORATION needs

Wondering how your non-blockchain project might benefit from blockchain?

04 TECHNICAL SUPPORT Book a one-on-one meeting to consult with our blockchain experts

Please reach out - we are here to support you!

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 Applications
Questions & Answers
Appendix

#disrupthunger
Smart Contracts
Computer programs executed by DLT/blockchain nodes. The results of the Not smart!
execution are validated by all the node using the consensus algorithm. No real contract!

Rules/Data Value transfer

Application domain: +
automation

Application without
DLT/blockchain

Smart contracts

DLT/Blockchain
infrastructure

Internet 29
https://pixabay.com/illustrations/energy-efficiency-consumption-1616966/
Trust Creation improves Digital Processes

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Practical Example: Bank Transfers

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FAQs…
Take away bits of information
Q: How are cryptocurrencies used? Q: Are cryptocurrencies Ponzi schemes? Q: Are cryptocurrencies regulated? Q: What is the most valuable
A: Cryptocurrencies regulations are currently cryptocurrency?
A: Cryptocurrencies today are used as A: Bad cryptocurrency projects can be, it
investments, payment methods, is therefore necessary to educate yourself contained within borders or states. Countries or A: Due to its seniority, bitcoin is
donations, and digital records of physical before investing, using it or building it. states with full or some crypto regulatory currently considered the most
assets to list a few. requirements include: US, Switzerland, China… valuable cryptocurrency.

Q: How can I access cryptocurrencies?

Q: Would cryptocurrencies ever Q: Are cryptocurrency transactions slow? Q: Who are the people investing in
completely replace the dollar? cryptocurrencies? A: You can buy crypto directly from a
A: Some cryptocurrencies such as bitcoin
peer, from an exchange or an ATM. You
A: This is highly unlikely right now, but it process transactions slowly (7 tranx/sec) A: According research, it is primarily affluent
will need to create a digital wallet to hold
might be the case in the future. vs. Visa (1,700/sec). white men, averaging 38 yr old and
your cryptocurrency.
$111K/year in income.

Q: Is crypto bad for the environment? Q: How can the environmental burden of Q: Are most crypto applications
Q: What percentage of crypto investors are A: It is tough to say with precision, but cryptocurrencies be reduced? running on just a few consolidated
women? preliminary research shows that Bitcoin A: It can be reduced via the implementation servers?
A: According research, only 26% of crypto consumes about 200 TWH per year, the of faster processing mechanisms and the A: Yes, most crypto transactions
investors are women. equivalent of Thailand’s annual energy use of renewable and recyclable energy. leverage 2 primary remote servers
consumption. managed by Alchemy and Infura.
Emergency Aid - UNICEF Crypto Fund
A prototype fund designed to finance early stage, open-source
technology benefiting children which exclusively accepts
donations and makes investments denominated in
cryptocurrencies
1. Three new donors contributed 2267 ether and 8 bitcoin to
date
2. A total of 1225 ether and 1 bitcoin was disbursed, the
equivalent of $304k USDa, to 12 projects
3. The average settlement time for each transaction was under
10min and the average cost of transaction was $3.62 USD
4. The CryptoFund enabled 100% transparency in the
movement of funding – a first for UNICEF
5. A new product suite Juniper was developed allowing anyone
to see donations and investments, while enabling UNICEF to
easily manage balances and to follow best practices.

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DAO
A DAO is defined as a "Group organised around a mission that coordinates through a shared set of rules enforced
on a blockchain“ . DAOs strive to employ these tools to enable trustless, completely decentralised governance.

● Grants and Investment DAOs: Communities donate funds and vote on how that capital is allocated in the form of governance proposals. Grants
DAOs that collectively pool capital and invest for (monetary) returns instead of donating are usually referred to as Investment DAOs.

● Protocol DAOs: Governance of crypto projects and protocols through tokens. Token holders have authority to propose and vote on technical
changes to the network.

● Service and Business DAOs: Application of digital governance to organise and provide fully digital services (e.g., matching individuals for currency
exchange) or contract talent to perform various services. Examples range from legal, creative, marketing, development, media to management
services. Performed work is often rewarded with tradeable tokens of the specific network.

● Social Experience DAOs: Focus on social capital over financial capital, DAO membership comes along with exclusive social experiences or is
focused on social interaction. E.g., Boring Ape Yacht Club.

● Social, Political, or Territorial Self-Governance DAOs: More complex and goal- driven than simple social DAOs. (Geographically distributed)
individuals sharing values or goals can coordinate using DAOs that can enable secure, efficient decision-making mechanisms to self-govern
movements, unions, communities, or territories.

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Add’l Blockchain Applications: Art & Fashion
Art Fashion
$27.7M sold by Sotheby auction house Create and Earn a living remotely using NFTs

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Add’l Blockchain Applications: Satchel (UC Berkley & Unicef)

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Add’l Blockchain Applications: Coffee Supply Chain by Farmer Connect

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DeFi
Decentralized finance, also referred to as “DeFi” or open finance, aims to recreate traditional financial systems (such
as lending, borrowing, derivatives, and exchange) with automation in place of middlemen. Once fully automated, the
financial building blocks of DeFi can be composed to produce more complex capabilities.

● Decentralized lending. Programmatically take out a loan on the

blockchain. No bank account required.
● Decentralized exchanges. Buy and sell cryptocurrencies through
a blockchain, rather than a centralized exchange like Coinbase. In
principle, a machine can trade on these.
● Collateralization. Provide digital assets to collateralize your
decentralized loans, providing the lender some recourse in the
event of default.
● Decentralized Identity. Identities are used in the context of
smart contracts for things like assessing your creditworthiness for
a decentralized loan.

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NFT
Blockchain-based NFTs are a medium of conveying ownership. Blockchain enables this information to be publicly
verified and updated. if the profile picture on social media is a cat,They can prove the said cat is associated with
their public key. What this means depends on what they want to prove, especially with the proliferation of NFT
contracts. .

● NFTs can cover an extremely wide variety of areas given they are
simply digital representations of ownership but there has been
significant growth within art and gaming in particular.
● NFTs are powerful because, when combined with other financial
building blocks on Ethereum, they allow anyone to issue, own, and
trade them.
● This makes interacting with NFTs significantly more efficient than
in traditional platforms.
● NFTs are still early, and will evolve. Their utility will increase as
digital experiences are built around them, including marketplaces,
social networks, showcases, games, and virtual.

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DAO
A DAO is defined as a "Group organised around a mission that coordinates through a shared set of rules enforced
on a blockchain“ . DAOs strive to employ these tools to enable trustless, completely decentralised governance.

● Grants and Investment DAOs: Communities donate funds and vote on how that capital is allocated in the form of governance proposals. Grants
DAOs that collectively pool capital and invest for (monetary) returns instead of donating are usually referred to as Investment DAOs.

● Protocol DAOs: Governance of crypto projects and protocols through tokens. Token holders have authority to propose and vote on technical
changes to the network.

● Service and Business DAOs: Application of digital governance to organise and provide fully digital services (e.g., matching individuals for currency
exchange) or contract talent to perform various services. Examples range from legal, creative, marketing, development, media to management
services. Performed work is often rewarded with tradeable tokens of the specific network.

● Social Experience DAOs: Focus on social capital over financial capital, DAO membership comes along with exclusive social experiences or is
focused on social interaction. E.g., Boring Ape Yacht Club.

● Social, Political, or Territorial Self-Governance DAOs: More complex and goal- driven than simple social DAOs. (Geographically distributed)
individuals sharing values or goals can coordinate using DAOs that can enable secure, efficient decision-making mechanisms to self-govern
movements, unions, communities, or territories.

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