In 2022, just as blockchain technology began to emerge in more tangible, visible, and practical ways, our TANGO Partners Perspective

asserted that “blockchain technology is poised to profoundly reshape the professional for- and non-profit spheres, from day-to-day transactions, to relationships, to essential structures and functions.” But what, exactly, is blockchain, and how does it have the potential to serve non-profits? Although best recognized in the context of cryptocurrencies, blockchain offers an ever-evolving opportunity for nonprofits to adapt to new models for growth and to confer and receive a series of other benefits.

What is Blockchain?

In order to best understand how blockchain might enhance and enrich the nonprofit (and for-profit) space, the CT Blockchain Association has produced legible, concise video guides to blockchain basics, beginning with the fundamental questions “what is blockchain?” and “how does blockchain work?”  

A blockchain is a transparent database of information stored across a vast, traceable digital network that verifies and concretizes each financial exchange.

Blockchain technology’s very make-up and function are essential to the advantages it offers.

An introductory understanding of these concepts begins to elucidate the ways in which blockchain’s applications can have real-world reach.

Practical Applications

From smart contracts to supply chain, blockchain offers transparency, security, and traceability, enabling smarter, more efficient decision-making, record-keeping, and metric analysis.

But what are smart contracts? And how does blockchain have the potential to impact the supply chain? Watch below for insights into two of blockchain’s many practical applications.

How Blockchain Can Improve Supply Chains

Nonprofits can track, analyze, and report more effectively with the use of blockchain technology. Day-to-day transactions and interactions have the potential to become more clear, reinforcing the durability of the institution as a whole. 

Business Boon

Blockchain enables DeFi (decentralized finance) and provides a higher level of cybersecurity, two very timely issues in donor-based transactions. Blockchain has the potential to eliminate a third-party, leading to more efficient use of funds dedicated to a nonprofit. On the topic of transparency, blockchain offers complete visibility to its donors, staff, and recipients of its services.

Learn more about DeFi here:

And explore the ways that blockchain offers greater cybersecurity here:

Decentralized finance, increased cybersecurity, and other emerging facets of blockchain technology stand to become essential tools in a nonprofit’s arsenal of effectiveness.  

Endless Possibilities

The boon of blockchain to nonprofits is its ability to support the mission through facilitating communication, creating greater ease and efficiency in financial transactions, and reinforcing trust in transparency. 

Pat LaVecchia, CEO of Oasis Pro and CT Blockchain Association board member, said of blockchain in a recent interview: “It creates efficiencies, lowers costs, it’s safer, it’s transparent, and the possibilities are endless.” 

 “Blockchain is a digital ledger that’s immutable, so you can’t make changes…that’s really powerful. Imagine everything we do, from the legislature, to contracts, to trade receivables, to securities transactions, to just purchases: if everything is on a public blockchain–eventually we’ll get there, I believe–there’s a record.”

Watch the full interview with Pat LaVecchia here:

Blockchain technology will likely become more and more accessible, as more institutions adopt its advantages. CT nonprofits have the potential to become leaders in embracing blockchain technology (just as the for-profit space has a similar opportunity), and for being at the forefront of an evolution in the way that nonprofits can grow and thrive.

Alan Deckman is the President and Principal Owner of TCORS Capitol Group, LLC, a full-service government relations and association management firm that has provided the highest quality of expertise and knowledge in the areas of lobbying and association management for more than 30 years. Mr. Deckman is also the Founder and President of the Connecticut Blockchain Association, whose mission it is to develop, promote, and advance blockchain technology and to establish Connecticut as a leader for blockchain innovation.

Videos produced by the CT Blockchain Association and Adam Chiara.