Blockchain Application For Transparency And Accuracy Charitable Activities In Vietnam

The blockchain technology in the charity sector is a promising initiative, which is a new boom, bringing transparency and safety to all publicly recorded and non-modifiable transactions in the controller’s ledger. Although this technology has been applied, it is not yet popular in Vietnam because of more difficulty to control transactions and the mechanism of operation is difficult. The legal basis of blockchain in Vietnam has not yet been widely disseminated. Blockchain technology can help improve the traceability and transparency of donations through distributed ledger. This system is built on Node.js written in JavaScript; the algorithms required for the system. This article will build a complete system of blockchain technology for charities and donors to bring high efficiency. We propose three main functions in the charity of funding transaction process including: transparency, decentralization, safety and security. Using blockchain can help increase contributor trust and ensure that their funds are used for the right purpose. With the development of blockchain technology, we can enter a future where philanthropy is more transparent and efficient. Research Purpose: The primary purpose of this research is to propose a blockchain-based system aimed at enhancing traceability, transparency, and security in the charity sector. This system seeks to address current inefficiencies in managing and verifying charitable donations by leveraging the benefits of blockchain technology to ensure that all transactions are immutable, publicly recorded, and efficiently managed. Research Motivation: The motivation behind this study stems from the limitations of traditional information management systems in charitable organizations, which often face challenges in providing transparent and efficient tracking of funds. Blockchain technology offers a promising solution to these issues, yet its adoption remains limited in Vietnam due to regulatory hurdles and complexities in implementation. This research aims to explore the potential of blockchain to overcome these challenges, particularly in the context of the charity sector. Research Design, Approach, and Method: The study employs a design and development approach, utilizing Node.js and JavaScript to build a blockchain system that ensures transparency, decentralization, and security in charitable transactions. The system is designed to manage the flow of donations through a distributed ledger, implementing key blockchain algorithms to safeguard transactions and improve accountability. This research follows a system-oriented method, focusing on practical implementation and performance evaluation of the blockchain system in a charity context. Main Findings: The research reveals that the application of blockchain technology in the charity sector significantly enhances transparency and trust among donors. The decentralized and secure nature of blockchain ensures that donations are traceable, reducing the risk of misallocation and increasing overall operational efficiency. The system also contributes to improved trust between donors and charitable organizations by ensuring that funds are used for their intended purposes. Practical/Managerial Implications: The findings suggest that charitable organizations can benefit from adopting blockchain technology to streamline donation processes, increase transparency, and strengthen donor relationships. By implementing blockchain systems, organizations can reduce administrative overhead, mitigate risks of fund misuse, and enhance their overall reputation, potentially leading to increased contributions and better operational outcomes.