Little Drops Of Water: How Giftcoin Works

Giftcoin - How it works 

Giftcoin as I have introduced in the earlier part of this series is a decentralized platform and cryptocurrency created to solve the major existing problems with the charity industry. It is important nevertheless to understand how the platform works.
Photo by rawpixel.com on Unsplash 
Giftcoin platform is governed by a smart contract for execution of transactions and will work based on the principle of “End-to-end-giving”. What does this mean? It basically means that all transactions carried out on the platform from the donation of funds to a charity using Giftcoins, the receiving of the funds by the charity, to how the money is being spent is recorded publicly on a distributed ledger “the Blockchain” and  can be tracked every step of the way.

How Do Donors Donate Money To Charity?

Donation process on Giftcoin platform follows three stages; Accumulation of giftcoin, donating to a cause and tracking of donations made.
Donors are required to possess Giftcoin which can be acquired either by purchase or accumulation from spending Giftcoins.
The donors willing to donate money for charitable causes will be required to browse through the different charity causes on the Giftcoin’s decentralized app and then using Giftcoins donate what they want to without having to worry about paying transaction fees or proof of payments because it is automatically represented on the blockchain.
The same happens when a particular milestone is reached i.e. a specific need is met by the charity organization with the donated funds; it is represented on the Blockchain and can be seen by the donors which will in turn boost their confidence in the system.
Photo credit  Whitepaper
little drops of water, they say makes an ocean

How is Giftcoin Accumulated?

Giftcoin is basically a currency and can be used in basically any form of transaction; however the deal is this; while spending Giftcoins in transactions Giftcoin is designed to round up transactions to the nearest dollar and then converts the extra cents to Giftcoins which can then be donated to any charity of the user’s choosing.
At mass adoption, Giftcoin will boast amazing features like; supply chain systems that allow payment of goods or services with Giftcoins, sophisticated smart contracts for specialized causes and easy to use applications for mobile phones. These among many more features will allow for easier use of the platform.
Example: A real life example of Giftcoin’s accumulation method can be likened to VAT paid on purchased goods. Just like when we spend on goods daily and VAT is being deducted in negligible sums without most people noticing, Giftcoins also rounds up the cents on every spend to the nearest dollar which after a while sums up to something substantial and can then be donated towards helping people.
Some people often want to wait till they have a substantial sum of money to donate to charity before they make donations; however with Giftcoin they can slowly be saving up little cents like some $0.50 here and $0.15 there from their daily spend. This adds up to whatever into something substantial down the road and is donated as it is or added to the amount the donors are willing to give.

Solutions to Existing problems

The solutions however are simple as well as they are innovative,
  • Giftcoins Solution to Internal Fraud – with a complex smart contract designed charity causes, the individual milestones of projects are broken down into phases in such a way that the smart contract only releases funds for the next phase when the present milestone has being completed and recognized on the Blockchain. This tackles internal frauds as mismanagement of funds will be open to the whole world.
  • Giftcoins Solution to External Fraud – Giftcoin powered by the Blockchain and partnerships with well-known and reputable charity organizations, will source adequate data and do due diligence to ensure scam charities don’t get listed on its platform i.e. by using the Giftcoin platform a donor can be confident his money is going to the right destination.
  • Giftcoins Solution to High Transaction Fees – In charity every penny counts and by this ideal Giftcoin introduces feeless transactions within the Giftcoin ecosystem as funds will be moved between different parties without any penny being paid. However to ensure  the sustainability of Giftcoins a 1% transaction fee is charged on conversions from fiat to Giftcoin and vice versa which is a lot lower than is being charged for transactions on the traditional charity platforms. Gofundme for example charges around 5% of the donated funds.
Photo credit  Whitepaper
Giftcoin is a revolutionary concept of charitable giving which shows the route from the pound to the project. This is exactly what the charitable sector needs in the C21st. An open, protected and satisfying digital method of giving
Lady Astor of Hever - Giftcoin advisor
Reference; Whitepaper
In the next part of this series I will be looking into why I believe Giftcoin will be a successful project.
Get involved with the conversation on the Giftcoin telegram community https://t.me/GiftcoinCrypto  and visit the website https://www.giftcoin.org/  ANN thread https://bitcointalk.org/index.php?topic=2828871.0  or download and read the Whitepaper https://www.giftcoin.org/GiftCoin_Whitepaper.pdf  for more information about the project and token sale.
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