Team ATL-NY Team members: Fanyun Peng, Zexin Liao, Zexi Yuan, Tong Jin, Xiaojie Yang
Challenge: Supply Chain
Problem: Auditing has become one of the most important tools in fighting against financial frauds and thefts in business and administrative both privately and publicly. The integrity of auditing in public sector is especially crucial as it measures how transparent public organizations process public budgets and funds. When it comes to non-governmental organizations, such as charities, the result of a clear audit trail with high integrity level is closely related to their reputes as well as public credits. However, normally crowd funding charities and small Kick starters do not have technical and financial abilities to conduct large-scale auditing. Some organizations rely on basic statistical software, such as Microsoft Excel and Google Drive, to manage their funds. This can lead to operational mistakes and organized frauds. Moreover, due to limited tracking and tracing features of those applications, it is very difficult and time-consuming to find out the source of mistakes and frauds during auditing processes. Therefore, it is necessary for small charities to adopt a more advanced structure that is highly traceable and strictly accountable. Our team believe that blockchain technology is a good solution.
Why: Our team focuses on using blockchain technology to eliminate potential mistakes and frauds during fund raising and management processes of small charities. We will be working on supply chain challenge. Our target organizations are kick starters and small charities. We believe that blockchain technology has congenital advantages to prevent fundraising frauds. First, blockchain prevents anyone from amending previous blocks. This eliminates unlawful changes before and after audit trail. Second, blockchain gives each participant a unique identity and such identity is not shareable. This allows participants to hold full accountability to their activities. Moreover, blockchain technology is highly efficient and affordable. This lowers financial barriers that prevent small charities from upgrading their structures.
With a significant growing market size of small charities, we believe that our application of blockchain for charity, compared to traditional trusted authority, is more trustworthy by adding transparency towards all donators. More and more people participate in online kick starting events via social media these days. A peer-to-peer network will give public more clearance to supervise and engage.
Current solutions: The standard way of fund management in small charities is to use a third-party software and hire an independent management company. For public auditing, charities cost considerable money to hire third-party auditors. This method is costly and very time-consuming. With a blockchain-based application, charities are able to manage their funds, to conduct public auditing and to increase civil engagement all at the same time.