Non-fungible tokens, which often take the form of collectible art, are now a multi-billion-dollar industry, with collectors scrambling for the hottest tokens in hopes they can sell them down the line and profit from the investment. However, NFTs are not just a quick cash-grabbing scheme, as some critics believe. Because they’re digital assets that can’t be exchanged, altered or split into parts, they have tremendous potential to ensure transparency in economic transactions while promoting social change and responsibility.
The following are just four examples of the many ways NFTs are already being used for the collective good of society.
1. Raising funds for charity.
With the help of NFTs, charitable organizations can raise much-needed funds for their most important causes. For instance, an organization could create an NFT to represent a donation to a non-profit organization or specific cause, such as providing access to clean water for communities in need. These NFTs can then be distributed via social media channels and other online platforms, encouraging people to support the cause by purchasing these tokens and contributing to the fundraising efforts.
By tapping into the vast network of crypto enthusiasts and collectors passionate about supporting social change, these organizations can easily crowdsource donations and support from all over the world. For example, Shelters on the Block uses NFTs to support homeless shelters in the Los Angeles area. Through its online platform, donors, either individually or with the help of an NFT project funding advisor, can purchase tokens representing a night’s stay at one of these shelters. The proceeds from this sale go directly to funding food, shelter, and other essentials for families in need, as well as providing recipients — who often lack access to traditional bank accounts — with crypto wallets and educating them on their use.
Other organizations like GiveTrack also use NFTs as a way to promote transparency and accountability in philanthropy. Using blockchain technology, donors can track exactly where their contributions are going and how they are being used by those who benefit from their generosity.
2. Ensuring individual and corporate responsibility.
NFTs also offer the potential for promoting greater social responsibility among individuals and businesses alike. By utilizing blockchain technology, which enables users to keep track of all transactions involving NFTs, organizations can more easily monitor their impact and track how every donation gets used. This level of transparency allows individuals and companies to see exactly where their contributions are going and how they are making an impact on society. It also enables consumers to hold organizations accountable for their charitable claims and ensure donations are used for social good as promised.
3. Conserving community resources.
With NFTs, it is possible to create more sustainable and responsible fundraising models that put the community’s needs first. For example, a charity could issue digital tokens representing real-world assets like land, natural resources, or renewable energy. These tokens would then be auctioned off to donors for small amounts of cryptocurrency or other forms of payment. The raised funds would then be directly invested into projects and programs that benefit the community. NFTs enable organizations and charities to move to the digital world. Doing so ensures physical resources go where they are needed and community resources aren’t wasted.
4. Providing financial transparency.
NFTs can also be used to promote transparency and accountability within financial systems. By recording all transactions on a public blockchain ledger, these tokens provide a clear audit trail for regulators and policymakers to follow. Furthermore, as NFTs are untraceable by design, they help minimize organizational corruption and fraud by ensuring that transactions are legitimate and fair.
Overall, NFTs bring immense potential to the table for promoting social change. Whether used for charitable causes or fostering greater trust in the financial system, they unlock exciting possibilities for doing good and making a better world around us.
David Siemer is CEO at Wave Financial. The Wave team has been pioneering the bridge between traditional asset management and cutting-edge technology, helping clients invest in digital assets, blockchain technology, and income-generating products.