Page 24 - ARUBA TODAY
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A24    TECHNOLOGY
                 Saturday 6 OctOber 2018
            Aid groups now using the same data technology as bitcoin




            By ROBERT STEVENS                                                                                                   ity,  AidTech,  had  a  social
             Associated Press                                                                                                   worker  bring  the  medicine
            LONDON  (AP)  —  In  the                                                                                            to  her  the  following  morn-
            Za'atari  refugee  camp  in                                                                                         ing.
            Jordan, Amar Al-Eid heads                                                                                           "We're  able  to  show  more
            toward  the  checkout  of                                                                                           data on the first two wom-
            the  food  distribution  store                                                                                      en using the platform than
            carrying supplies for his two                                                                                       the   organization   could
            children.  The  shopkeeper                                                                                          with  over  10,000  women
            raises  a  black  box  to  his                                                                                      when  they  were  using  a
            face  and  scans  the  Syrian                                                                                       paper-based  system.  That
            refugee's  iris.  The  transac-                                                                                     means we can be far more
            tion  goes  through  and  a                                                                                         responsive,"  said  Joseph
            day's rations are secured.                                                                                          Thompson, founder of Aid-
            The  data  technology  that                                                                                         Tech.
            underpins  virtual  curren-                                                                                         The  system  does  have  its
            cies like bitcoin is now also                                                                                       downsides.   In   practical
            used  to  deliver  aid  more                                                                                        terms, having aid released
            efficiently  by  dramatically                                                                                       only  upon  an  iris  scan
            lowering  the  risk  of  bribes                                                                                     means a busy mother, say,
            and fraud by local officials                                                                                        would  not  be  able  to  ask
            —  a  huge,  longstanding                                                                                           her child to go get the aid
            problem in the industry. The                                                                                        rations for her instead.
            so-called blockchain keeps                                                                                          The  way  the  transactions
            a record of all transactions                                                                                        are verified can also be pa-
            and buyers, making sure re-                                                                                         tronizing.  The  blockchain
            cipients like Al-Eid get their                                                                                      aid  for  the  homeless,  for
            goods  without  the  added                                                                                          example, ensures the mon-
            costs of graft or bank trans-                                                                                       ey  is  used  for  productive
            fer  fees.  And  donors  can                                                                                        purposes  like  shelter  rather
            track  the  use  of  their  aid                                                                                     than  alcohol  or  drugs,  im-
            money,  all  the  way  to  the                                                                                      plying  a  lack  of  trust  that
            refugee  family  it  helps  sur-                                                                                    can  be  degrading  for  the
            vive.                                                                                                               receiver.
            "It's  a  very  easy  process   In this Sunday, May 21, 2017 file photo, David Beasley, the new executive director of the World   And  there  are  broader
            and  it  doesn't  have  any   Food Programme, speaks to The Associated Press, in Amman, Jordan.                     questions  about  privacy
            complications," says Al-Eid,                                                                       Associated Press  rights,  as  the  data  can
            before  taking  the  food  off                                                                                      track  the  actions  of  indi-
            to his family.               chain  technology  helps  it  accountability,  and  com-  entering a bank's vault.     viduals.
            The  UN's  World  Food  Pro-  know  where  every  cent  is,  munication   across   the  The blockchain doesn't use  While  personal  details  like
            gramme  has  been  test-     from  the  moment  it  is  do-  board."                   middlemen  like  Western  names  are  encrypted,  the
            ing  the  use  of  blockchain  nated to when it is spent on  Because the data is spread  Union  or  PayPal,  mean-  record  of  transactions  is
            technology    since   2017  a physical good.              across  so  many  comput-    ing  the  costs  of  transfer-  viewable  to  anyone  with
            to  manage  aid  for  over  And  that  can  mean  huge  ers,  a  thief  would  have  ring  money  are  reduced  access  to  the  blockchain.
            100,000 refugees in camps  savings.                       to  take  control  of  the  en-  by 98 percent for users like  The  issue  is  all  the  more
            in Jordan, which hosts over  Former  UN  Secretary  Gen-  tire  network  —  potentially  the WFP. That translates to  delicate  when  the  people
            740,000 people from neigh-   eral  Ban  Ki  Moon  has  said  thousands  of  terminals  —  savings of over $40,000 per  tracked are vulnerable, like
            boring  countries  like  war-  that  in  2011,  some  30  per-  to fudge the numbers and  month for the UN agency.  stateless refugees.
            torn Syria. It aims to extend  cent  of  aid  donations  -  make  off  with  the  money.  Smaller  charities  are  also  Some UN officials are aware
            it  to  500,000  refugees  by  around $40 billion, accord-  That would require an enor-  testing out blockchain.    of these risks, and there is a
            the  end  of  March.  Other  ing to one estimate - failed  mous  amount  of  comput-   Last  year,  the  London-    debate  about  whether  to
            international  organizations,  to  reach  intended  recipi-  ing power, so it wouldn't be  based homeless charity St.  ramp up its use across aid
            including  the  World  Bank,  ents  because  middlemen  profitable.                    Mungo's  tested  a  block-   and development projects.
            UNICEF and the Red Cross,  skimmed  some  off  of  top  That  doesn't  mean  smaller  chain  platform  to  monitor  "We will not store any sensi-
            are  looking  at  ways  to  im-  and  corrupt  officials  often  thefts can't occur. So far in  the  use  of  donations  and  tive personal data (on the
            plement  blockchain  into  took a cut.                    2018, about $1 billion worth  prove  they  were  being  blockchain),  especially  of
            their own projects.          Ultimately, the system helps  of virtual currencies backed  spent on improving the re-  such  a  vulnerable  popu-
            Blockchain is an online led-  those  who  receive  the  by  blockchain  has  been  cipients'  lives.  Only  then  lation  as  refugees,  with  a
            ger  of  transactions  spread  money by making more of  stolen, according to cyber-    would  more  donations  be  technology  that  still  needs
            across a global network of  it  available  and  reduces  security firm Carbon Black.  released.                     to  prove  its  merits,"  says
            computers  that  use  their  the  concern  among  do-     But  these  thefts  are  typi-  The  data  can  also  help  Karl  Steinacker,  a  deputy
            processing  power  to  verify  nors  that  their  money  will  cally  carried  out  through  make aid more efficient by  director at the UN refugee
            any changes. It is most fa-  actually be used for the in-  hacks of the end users by,  tailoring  the  service  to  the  agency.
            mous for being used to sup-  tended purpose.              for  example,  entering  the  needs. For example, in one  For  Al-Eid,  such  questions
            port  virtual  currencies  like  "We  have  this  rapid  abil-  email account of a person  project  in  Tanzania,  the  are  secondary  while  he
            bitcoin, but can in practice  ity  to  understand  where  to  get  their  passwords  to  blockchain  system  could  tries to keep his family safe
            be  used  to  track  any  sys-  our  money  is  throughout  open  their  virtual  currency  show  that  a  particular  and nourished.
            tem  of  payments  or  data  the  process,"  says  Gustav  accounts  and  take  the  woman regularly visited the  Without     the   donations,
            transfers. In the refugee aid  Stromfelt,  one  of  the  proj-  money. The thieves do not  local doctor once a week  "people  wouldn't  be  able
            system  it  is  testing,  the  UN  ect  managers  working  on  take  control  of  the  block-  to  buy  medicine  for  her  to live," he says on his way
            does not use virtual curren-  the  WFP's  program.  "It  im-  chain system. It's like com-  child.  So  when  she  missed  out of the food shop. "The
            cies but dollars. The block-  proves  the  transparency,  paring  pickpocketing  to  an appointment, the char-      assistance is very good."q
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