Binance recently entered the charity space, with a recent announcement stating that they will be donating all of their trading fees to charities. More recently, they released an article detailing the architecture of their newly created Blockchain Charity Foundation [BCF].
The Blockchain Charity Foundation is set to have Helen Hai, the Goodwill Ambassador of UNIDO at its head. The President of Malta, Marie-Louise Coleiro Preca will also fill in as the Chairman for the senior advisory board of the foundation.
Changpeng Zhao, the CEO of Binance, published a blog post that detailed the system that the foundation would follow for donations. He also elaborated on issues that could be faced while implementing the architecture.
CZ mentioned that the program would involve a 3 or 4 layer donation tracking system. The layers would be made of the donors, charity programs associated with the BCF, and the ultimate beneficiaries. There is also an optional layer of including charity partners as well.
Zhao began by speaking about the donors and clarified that they could choose from various charity programs to donate. Moreover, they are also given a choice between the donations being public or anonymous.
He also clarified that the Foundation could donate directly to the beneficiaries, or work with charity partners who distribute the funds. Most importantly, CZ aims to utilize the blockchain in order to track the movement of the funds from the donor to the beneficiaries in a “transparent manner”.
In order to allow for easy accessibility to the data of the moving funds, Binance aims to create a website for tracking them. This is proposed as a “tracking platform” where transactions can be tracked, and present them in a way that the general public can understand.
Binance also expects to receive donations from multiple projects across various cryptocurrencies. This would mean that the tracking platform needs to be able to utilize tracking across chains. The website will include transactions on the blockchain, along with facilities for the registration and verification of users under KYC and AML norms.
CZ has strictly stated that they are against creating a new blockchain for the purpose the BCF, as it “will severely limit the ability or interest of existing coins to participate”
He also fleshed out a few issues that the foundation might have, such as educating the beneficiaries on how to utilize cryptocurrency. This responsibility will fall on the BCF or a partnered charity, which is aimed to be solved using the Binance Academy educational videos.
They also stated that they will require a certain level of ID verification in order to combat fraud. They aim to do this while ensuring the privacy of the beneficiaries. This is set to be solved using a “multilevel permissioning system”, wherein volunteers can be assigned to do the verification process.
CZ also mentioned that they will announce a “list of participating partners shortly”, implying that there are more charities that will be on board with the BCF.