Standing on Protocol: How blockchain design benefits charitable giving

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“Protocol” is an uncommon word for many and rarely used in a charitable organization. Readers may wonder: what is a “protocol” and how does it operate? We at Angel Protocol are here to answer that question!

At its simplest, a protocol is a set of rules. Anyone reading this document is familiar with at least one protocol and probably uses it every day: the Hypertext Transfer Protocol — HTTP — outlines a widely accepted foundation for data communication online. Protocols can be as simple or complicated as the rules that they outline (for example, a simple summary of the HTTP is available here)

When it comes to blockchain technology, the word “protocol” describes three fundamental elements of Angel Protocol’s approach to charitable giving:
  • Blockchain technology ensures that all donations are fully transparent, easily accessible, and visible to anyone who wishes to examine them

Blockchain protocols run on “smart contracts”, which execute predetermined actions when a set of conditions are met. A protocol can be thought of as the collection of individuals and technologies that define that set of conditions. In the world of blockchain, a protocol combines human decision-making with technology to enable processes that are democratically decided and automatically executed. Put simply: token holders make the decisions, and the code handles the rest.

In the case of Angel Protocol, the community of HALO token holders determines the “rules of the road”. In other words, HALO possesses not only inherent economic value that rises as donations increase, but also the right and obligation to help make key decisions for the project. $HALO token holders are incentivized to participate in the governance of Angel Protocol — and the voting mechanisms ensure that their votes carry weight in the decision making process.

One example of a protocol-based application is the decision to help out victims of natural disasters. A protocol-based approach enables the community to make a decision about how to deploy funds in the case of a typhoon. If the community decides that Angel Protocol should establish an “emergency fund”, then this decision can be codified in smart contracts that disperse funds rapidly to designated relief organizations. This process can occur incredibly rapidly — a critical factor in disaster situations where time is of the essence.

Legacy charitable institutions often struggle to provide transparency around the collection and distribution of funds. Blockchain technology can help address that challenge, but tapping the power of that technology requires engaged stakeholders to determine how best to apply it.

A protocol combines the best of both worlds: combining the human element of engaged, motivated stakeholders with the power of programmed solutions.

Hence it’s an important part of our name. Angel Protocol.