At its core, blockchain is a distributed digital ledger that stores data of any kind. A blockchain can record information about cryptocurrency transactions, NFT ownership or DeFi smart contracts. While any conventional database can store this sort of information, blockchain is unique in that it’s totally decentralized. Rather than being maintained in one location, by a centralized administrator—think of an Excel spreadsheet or a bank database—many identical copies of a blockchain database are held on multiple computers spread out across a network. These individual computers are referred to as nodes. As fresh data is added to the network, a new “block” is created and attached to the “chain.” This involves all nodes updating their version of the blockchain ledger to be identical. How these new blocks are created is key to why blockchain is considered highly secure. A majority of nodes must verify and confirm the legitimacy of the new data before a new block can be added to the ledger. For a cryptocurrency, they might involve ensuring that new transactions in a block were not fraudulent, or that coins had not been spent more than once. This is different from a standalone database or spreadsheet, where one person can make changes without oversight. Transactions are typically secured using cryptography, meaning the nodes need to solve complex mathematical equations to process a transaction. “As a reward for their efforts in validating changes to the shared data, nodes are typically rewarded with new amounts of the blockchain’s native currency—e.g., new bitcoin on the bitcoin blockchain,” says Sarah Shtylman, fintech and blockchain counsel with Perkins Coie. There are both public and private blockchains. In a public blockchain, anyone can participate meaning they can read, write or audit the data on the blockchain. Notably, it is very difficult to alter transactions logged in a public blockchain as no single authority controls the nodes. A private blockchain, meanwhile, is controlled by an organization or group. Only it can decide who is invited to the system plus it has the authority to go back and alter the blockchain. This private blockchain process is more similar to an in-house data storage system except spread over multiple nodes to increase security. Source: Forbes

Cryptocurrency is a form of payment that can be exchanged online for goods and services. Many companies have issued their own currencies, often called tokens, and these can be traded specifically for the goods or services that the company provides. As of October 2021, more than 13,000 different cryptocurrencies are traded publicly, according to CoinMarketCap.com, a market research website. And cryptocurrencies continue to proliferate, raising money through initial coin offerings, or ICOs. The total value of all cryptocurrencies on Oct. 22, 2021, was more than $2.5 trillion, having fallen off an all-time high above $2.6 trillion days earlier. Source: Nerdwallet

Improving Our Operations Our primary work is around building sustainable infrastructure for communities that have historically struggled with attaining resources. Blockchain can increase traceability and efficiency within logistical systems, markets, and supply chains. It can also help Human Needs Project to improve access to resources and remove barriers for people who have historically been unbanked or disenfranchised. Growing Our Impact Cryptocurrency holders and web3 communities represent a growing segment of the population, many of whom are passionate about creating a better and more just future for our planet and its people. HNP’s fluency around crypto opens new portals for fundraising and support wherein international donations are easier to accept. This enables us to grow and magnify our impact at a level that would be unattainable otherwise. Education and Technology HNP is committed to sustainability, education, and thoughtful use of technological solutions. Teaching blockchain and cryptocurrency management skills allows for us to strengthen the sustainability and independence of our students, so their families and communities become more adaptable and resilient in the face of change.

Blockchain technology and cryptocurrency are frequently accused of having significant negative environmental impacts due to their energy use and carbon emissions. Historically there has been a strong case for this perspective, as early blockchain ecosystems -- most specifically bitcoin -- relied on energy-intensive proof-of-work (POW) consensus mechanisms that, when not powered by renewables, led to high levels of fossil fuel consumption. While there is still a great deal of work to be done, most of today’s blockchain tech has evolved to circumvent this challenge. POW technology has been largely supplanted by a new consensus mechanism known as proof-of-stake (POS), which is vastly more efficient than POW. The energetic requirements of POS are only a tiny fraction of what a similar-size POW ecosystem would require. There is no debate that cryptocurrency can be environmentally damaging. The early years of bitcoin taught us that. That said, we are learning, and the sector is improving at an incredible rate. When developed thoughtfully and managed responsibly, cryptocurrency has the potential not only to achieve sustainability, but to actually increase efficiency, bolster renewable energy, and reduce the environmental impact of our financial systems as it replaces conventional banking infrastructure with digital decentralized systems.

While HNP does accept bitcoin donations, we are committed to ensuring that our participation in this space has a positive overall impact on our planet. All donations received via BTC will be spent exclusively on projects aimed to neutralize/reduce the carbon footprint of our operations, creating a net decrease in carbon vastly outweighing the carbon incurred by the BTC transactions themselves. Our expertise is in infrastructural development projects that minimize carbon output; we are extremely interested in using BTC to power projects such as this as an abrogation device for the carbon output of bitcoin. HNP is actively soliciting partners for case study work to explore the impacts of BTC vs the potential of low-carbon infrastructure development. If you or your organization would be interested in helping to support this work, please get in touch with us.

In essence, cryptocurrency offers the opportunity for many individuals to take control of a greater degree of their financial welfare. Being able to store value in a decentralized digital ledger can help distance marginalized groups and individuals from the economic confinement that often stems from the current global financial system, especially in countries that have weak or unpredictable currencies and unstable or corrupt government structures.

In many ways, yes! Cryptocurrencies allow donors to take advantage of blockchain technology that can provide secure fund transfers, low transaction costs, and in many cases, near-instantaneous transaction speeds.

Please contact us to get information about confirmed blockchain partners. If you see a project that claims to support us, please check with us first before donating.

We are happy to share our experiences and offer guidance in this space. Please reach out to our development team if we can be of any assistance!

Yes, we can manually generate cryptocurrency donation receipts for those who request them beforehand. Please email us BEFORE making your donation. The IRS classifies cryptocurrencies as property, so cryptocurrency donations to 501(c)3 charities receive the same tax treatment as stocks. Donating cryptocurrency is a non-taxable event, meaning you do not owe capital gains tax on the appreciated amount and can deduct it on your taxes. This makes cryptocurrency donations one of the most tax-efficient ways to support your favorite cause. Contact your tax or financial advisor for more information.