Direct Charity with AI & Blockchain
The traditional charitable system in society indeed has enormous friction costs: administration, verification, fundraising, publicity, and multiple layers of transfer, which can reduce the proportion of original donations reaching the intended recipients to only 30–60%. If we want to “bypass charitable organizations” and get money directly to those in need, several approaches can be considered:
1. Identity Verification & Needs Assessment
- AI verification mechanisms: Use AI to detect whether an applicant genuinely needs help, for example by cross-referencing medical data, social credit, geographic location, and living conditions.
- Dynamic needs tracking: AI can analyze an applicant’s living data (income and expenses, utility bills, medical needs) and automatically determine whether assistance is truly required.
- Fraud prevention: Use AI + blockchain to prevent the same person from receiving funds multiple times or impersonating others.
2. Decentralized Cash Flow
- Blockchain / stablecoins: Use cryptocurrencies or central bank digital currencies (CBDC) to transfer money directly to the recipient’s digital wallet without intermediary deductions.
- Smart contracts: Rules can be pre-set, e.g., “this donation can only be used to pay medical bills, utility bills, or buy food,” with transparent tracking of the recipient’s spending.
- Automated micro-distribution: AI can instantly distribute global donations to the people who need them most, rather than through large foundations.
3. Crowdsourced Intelligence + AI Matching
- Real-time needs map: AI can analyze news, social media, and satellite imagery to identify regions affected by disasters or poverty.
- Peer-to-peer assistance (P2P): Donors can directly see “a specific recipient’s story and needs,” so money goes straight to that person without large organizations in the middle.
- AI arbitration: To prevent fake stories from scamming donations, AI can automatically cross-check background information to ensure authenticity.
4. AI-driven “Digital Charity Platform”
Imagine an “Uber for Charity”:
- Donor → deposits money directly into the platform
- AI → immediately matches it to the families or individuals who need it most
- The entire process is transparent and real-time, and donors can even specify the type of people they want to help (children’s education / medical care / impoverished households)
- Administrative costs are nearly zero because the algorithm handles operations automatically.
5. Social Credit & Rating System
- Every donation → has a publicly visible record
- Recipients have a “credit score”: if they genuinely improve their lives, they receive more assistance; if they abuse resources, their score decreases and future aid is limited
- Transparency addresses the trust issues humans often have with opaque charitable systems
Ultimate Concept
If society can accept “transparent money flow + decentralized automated distribution,” charitable institutions will gradually be replaced by an AI + blockchain platform. At that point, administrative costs are minimal, and almost every donated dollar reaches the recipient.