The Waryer platform runs on the Ethereum blockchain, which is a reliable technology for recording and executing smart contracts in a secure and decentralized manner. Cross-border transactions on the blockchain can be carried out with minimal costs, as opposed to the hefty fees traditional donations incur. As well, the smart contract releases funds only to the intended recipients, and no one else.
The Waryer smart contract can also be customized to include conditions for the release of funds, such as development milestones that the beneficiary must meet. In addition, since all donations are recorded on the blockchain, there is an increased level of transparency, allowing the public to audit the flow of money.
Verification of Beneficiaries
It is important to know the recipient address for donations on the Waryer network is indeed the same entity it claims to be outside the network. Waryer implements a multi-level verification process that assigns labels to the beneficiary depending on its status in the process. This gives donors more confidence when making a contribution.
Each beneficiary on the network is asked to submit information such as website, email address, physical address, 501 c3 registartion number and any relevant documents for verification. Such information will be made public for all users to see. This means anyone on the network can perform audits on any beneficiary. If anything abnormal is noticed, a participant in the network can flag the suspicious beneficiary. Verification statuses can be revoked at any point, even after completing all levels of the process, if enough participants flag the entity as illegitimate.
- Email verification : Waryer sends an email to the address submitted, containing a unique verification link. It would be very difficult for the verification applicant to have access to the link unless the applicant has access to the
- Phone verification : Waryer makes an automated call to the phone number with a 6-digit code. The applicant must enter the code on the web verification interface within a specified time window.
- Website verification : Waryer generates a HTML meta tag with a unique hash value that only the applicant of the verification can see. The applicant is to include the meta tag on their main website. If Waryer sees the unique hash when visiting the website submitted by the applicant, we know the applicant is the owner of the website.
- Manual verification : Our own Waryers on the ground can perform manual checks on the beneficiary in a variety of ways. This may include performing online searches, calling the phone number submitted, or even visiting the physical address.
More advanced verification schemes may be added in the future depending on the need as decided by the community to minimize fraudulent activities – specifically to filter out malicious parties posing as known registered organizations.
In addition to the general verification process, we have plans to directly reach out to established nonprofit organizations around the world. Since these organizations are onboarded manually, they may be exempt from part of the usual process. However, they remain subject to community vetting and verifications at all times, to ensure the highest level of validity and transparency.
There have been a number of initiatives by leading nonprofit organizations to implement transactions and donations using blockchain, as the technology gained more popularity and mainstream attention in recent months. Many of these efforts seek to eliminate the prominent problem of corruption by various approaches. Looking forward, we expect this trend to continue and there would be more innovative solutions addressing the current inefficiencies in the operation of nonprofit organizations.