Next Street and LISC partnered to explore the potential for blockchain application to solve community development challenges in New York City. Together we identified four significant challenges to using blockchain for social impact: scalability, data recovery, regulatory uncertainty, and lack of implemented pilots. Next Street and LISC are now exploring potential blockchain pilots to address challenges within community development.
Today, organizations with social missions face increasing pressure to track impact data in addition to tracking traditional financial and operational data. Blockchain and other distributed ledger technologies (DLTs) can transform how this is done, providing a new foundation for the secure and trustworthy exchange of services and information. DLTs can help organizations increase efficiency and cut costs without sacrificing trust and data quality.
Most mission-driven blockchain applications are still in the ideation phase, but they are being widely tested—from creating digital identities for refugees to curbing the use of child labor in diamond mines. Now, Next Street and LISC have joined forces to identify pilot blockchain uses that address challenges within community development. We hope to identify whether blockchain solutions could help increase the flow of impact investments to projects, organizations and communities.
As we develop potential applications, we hope you will join us to test new solutions.