Blockchain is more than just a foundation for cryptocurrencies – it’s a tool for solving global challenges. Around 1.4 billion people remain unbanked, losing access to basic financial services, while $2.6 trillion is stolen annually through corruption worldwide. There is a widespread stereotype that blockchain facilitates shadow financial operations, such as bribery and illegal transactions. It comes from the false opinion about the absolute anonymity of crypto, which we debunked in our article "Is crypto that anonymous? Myths and realities of blockchain privacy".

In truth, blockchain now helps to solve a lot of social and legal problems, from ensuring fair aid distribution in war regions to dealing with counterfeit goods in global supply chains, blockchain aligns with the United Nations’ Sustainable Development Goals (SDGs). This article from SwapSpace’s CPO Andrew Wind explores 17 reasons why adopting blockchain is critical for fighting poverty, crime, and inequality, creating the way for a more sustainable future.

Blockchain’s power lies in its foundation: decentralization, transparency, immutability, and security. Unlike traditional systems reliant on centralized intermediaries, blockchain enables peer-to-peer networks that reduce costs and inefficiencies.

Example! Remittance fees for international transfers often exceed 7% globally, costing $37 billion annually—blockchain-powered systems like Stellar have reduced this to less than 1%.

Transparency is another game-changer. The World Economic Forum estimates that $2.6 trillion is lost annually to corruption. Blockchain’s immutable ledger ensures real-time traceability, as seen in IBM’s Food Trust, which reduced the time to trace contaminated produce from 7 days to 2.2 seconds.

Smart contracts further expand blockchain’s potential by automating agreements. Ethereum-based projects, like the UN’s World Food Programme (WFP), use blockchain to deliver aid efficiently, bypassing intermediaries. Thus, blockchain remains to be a transformative technology, uniquely suited to tackle global challenges and achieve the UN's Sustainable Development Goals.

Blockchain’s transformative potential can be categorized into thematic fields aligned with the UN’s Sustainable Development Goals (SDGs): poverty alleviation, combating crime, environmental sustainability, global partnerships, empowering marginalized groups, and innovations in governance.

Blockchain offers powerful tools to fight poverty and foster economic inclusion:

• Financial inclusion through DeFi: Since over 1.4 billion people globally lack access to traditional banking, blockchain-based platforms like Celo and Stellar allow individuals to store, transfer, and earn funds using mobile wallets. Stellar facilitates cross-border remittances with transaction fees as low as 0.1%, compared to the global average of 7%, saving billions annually.

• Transparent aid distribution: Aid programs using blockchain eliminate corruption and inefficiencies. The World Food Programme (WFP) distributed food aid to over 106,000 Syrian refugees in Jordan through blockchain, cutting transaction fees by 98%. Smart contracts ensure aid reaches recipients directly, bypassing intermediaries.

• Blockchain for fair trade: Platforms like Provenance use blockchain to trace supply chains, ensuring fair prices and ethical practices for small-scale producers. Small-scale coffee farmers use Provenance to verify their beans' origins, receiving fair compensation and recognition for ethical production.

• Micropayments and Universal Basic Income (UBI): Blockchain enables UBI programs that provide small, daily income to the vulnerable. GoodDollar uses smart contracts to distribute funds, offering a lifeline to marginalized communities worldwide.

Blockchain is a powerful tool in the fight against crime and corruption, offering unparalleled transparency and security.

• Anti-corruption mechanisms: Since governments lose over $2.6 trillion annually, blockchain’s immutable ledgers enable transparent tracking of public funds, reducing fraud. For example, Estonia uses blockchain to monitor government spending, ensuring real-time accountability and public trust.

• Supply chain transparency: Counterfeit goods account for an estimated $464 billion in global trade annually. Blockchain platforms like IBM’s Food Trust and Everledger ensure traceability across supply chains. Everledger tracks diamonds to combat the $75 billion counterfeit gem trade, while IBM’s Food Trust can trace contaminated food in seconds, preventing fraudulent practices and improving consumer safety.

• Digital identity verification: Identity theft affects over 15 million people annually in the U.S. alone. Blockchain-based identity solutions, such as Microsoft’s ION, provide secure, decentralized identity management. These systems eliminate centralized vulnerabilities, allowing users to control and verify their personal data, reducing fraud risks.

• Smart contracts for justice: Legal systems often suffer from delays and inefficiencies. Smart contracts on platforms like

Blockchain is driving environmental sustainability by enabling transparency, accountability, and innovation in resource management and renewable energy markets.

• Carbon credit tracking: In February 2024, the carbon trading market was valued at over $948.75 billion, but fraud and inefficiencies hinder its impact. Blockchain projects like Toucan Protocol tokenize carbon credits, ensuring transparent ownership and trading. This system prevents double-counting and incentivizes businesses to adopt eco-friendly practices.

• Sustainable resource management: Efficient resource use is critical as global water demand is expected to rise by 30% by 2050. Blockchain solutions like IBM’s blockchain for water management monitor and optimize water distribution in regions prone to scarcity. Similarly, Power Ledger uses blockchain to track and optimize energy consumption, helping communities reduce waste and improve efficiency.

• Renewable Energy Markets: Peer-to-peer energy trading platforms such as LO3 Energy enable consumers to trade surplus solar or wind power directly, bypassing traditional utilities. In Brooklyn, New York, LO3’s platform has facilitated local energy sharing, creating a decentralized and resilient energy grid.

Blockchain fosters global collaboration by enhancing transparency and enabling innovative structures for coordinated action.

• International aid transparency: Over $150 billion in international aid is distributed annually, but inefficiencies and corruption often hinder its impact. Blockchain enables real-time tracking of funds, ensuring they reach intended recipients. The Red Cross uses blockchain to monitor disaster relief efforts, while Oxfam’s “UnBlocked Cash” program in Vanuatu distributed aid via blockchain-backed vouchers, reducing delivery time by 96% and boosting local economies.

• Decentralized Autonomous Organizations for collaboration: DAOs offer a transparent, decentralized framework for managing international projects. For example, KlimaDAO aligns global participants to fund climate action by managing tokenized carbon credits. These organizations allow stakeholders from different regions to pool resources, vote on initiatives, and drive action transparently, bypassing bureaucratic delays.

By improving aid effectiveness and fostering innovative, decentralized collaborations, blockchain strengthens global partnerships and accelerates progress toward achieving the United Nations’ Sustainable Development Goals.

Blockchain is a key tool for empowering marginalized communities by providing equitable access to resources and opportunities.

• Empowering women and minorities: In many developing countries, women and minorities face barriers to land ownership, credit, and political participation. Blockchain-based platforms like Bitland help secure land rights through immutable, transparent records, ensuring ownership is protected. Additionally, blockchain initiatives like SheChain provide women with access to credit through decentralized lending, promoting economic independence.

• Access to education: Over 260 million children lack access to quality education globally. Blockchain-powered systems like Accredible allow individuals to securely store and verify educational achievements, bypassing traditional barriers like credential fraud and access to centralized institutions.

  Important! Emphasizing decentralized databases, it allows individuals to lend, trade, and borrow, bypassing traditional credit scoring and know-your-customer requirements. This model empowers users with more control over their assets and extends credit access to small businesses and individuals lacking formal credit histories, thus democratizing financial services and promoting inclusion.

Blockchain is transforming governance by enhancing transparency, reducing bureaucracy, and improving accountability.

• Transparent elections: Elections in many countries are marred by fraud and inefficiencies. Blockchain-based voting systems, like Follow My Vote, offer secure, transparent, and tamper-proof platforms for casting and verifying votes. West Virginia's pilot blockchain voting system in the 2020 U.S. elections allowed overseas military personnel to vote securely, demonstrating blockchain’s potential in safeguarding democratic processes.

• Decentralized governance models: Blockchain also enables more efficient, decentralized decision-making. Aragon allows organizations to manage their operations using on-chain governance, removing intermediaries and increasing transparency. These DAOs ensure that stakeholders can vote on important decisions, promoting accountability while reducing bureaucratic delays.

By providing transparency, security, and decentralization, blockchain can help with overcoming poverty, combat corruption and improve sustainability. From enabling financial inclusion and transparent aid distribution to ensuring fair trade and more accountable governance, blockchain aligns closely with the United Nations’ Sustainable Development Goals. As global challenges become increasingly complex, blockchain presents innovative solutions that can create lasting, positive change. By embracing this technology, we can unlock new opportunities for a more equitable, sustainable, and just world.