Cryptocurrency is powered by blockchain technology, which is a series of authenticated ‘blocks’ of data that possess the entire history of that specific crypto coin. This includes every transfer of ownership and transaction right from the point it was originally mined. This presents a huge opportunity for charities who are looking to reach their next fundraising goal.
Any changes to that crypto – a peer to peer transaction for example – is recorded, time stamped and verified by every computer within the mining network in a new block before the transaction is approved and completed.
This approval process – much like the verification steps your bank takes when you use your credit or debit card – is critical as it prevents what’s known as double spending.
Without the blockchain to serve as a living record, a crypto coin would be little more than an electronic reference, with a value attached that you could trade as often as you want.
The original cryptocurrencies – like Bitcoin – make every record in the blockchain available to the public which is great for transparency but doesn’t make it more or less secure.
New cryptocurrencies produce private coins which, as its name suggests, have a hidden blockchain. It still goes through all the exact same verifications as Bitcoin but the records are not readily available to the public.
Cryptocurrency represents a potentially significant revenue stream for businesses and most notably charities. Accepting the currency, mining it or leveraging browser based solutions to borrow your supporters' processing power to augment your mining efforts all serve as a means to mine cryptocurrency which can be sold for cash or stockpiled as an asset.
To learn more about how your charity could benefit from cryptocurrency, contact Cudo Donate today to speak to one of our data experts.