China start-up launches blockchain-based platform to improve donation efficiency amid virus crisis

A blockchain-based donation tracking platform has been launched in China, aimed at improving the transparency and efficiency of giving at a time when some traditional charities have come under fire for poor distribution of resources to people in need.

Shanzong, which was launched on Monday, tracks what kind of donations are given, from money and masks to medical materials, how they have been matched to areas of need, and when they have been delivered, according to its maker.

Initiated by blockchain start-up Hyperchain and China Xiong’an Group, the platform had recorded information on 500 donations as of Thursday morning. Existing donors include New Sunshine Charity Foundation and Yuegou Living Supermarket, while donation recipients included the Tongshan People's Hospital, Jiayu People’s Hospital and Xiantao No. 1 People’s Hospital in Hubei province – all of which are treating people infected with the coronavirus.

In China, a series of scandals over the handling of public donations and distribution of aid has damaged people’s confidence in some state-backed charity organisations. More recently, some hospitals have reported shortages of masks used by front-line medical personnel to protect themselves as they treat patients, sparking an outcry on social media.

On February 1, the Red Cross Society of Hubei issued a statement on its website saying they were “deeply distressed, blamed themselves and felt guilty about problems with the distribution of donated materials”.

“Shanzong guarantees the authenticity of donation information by putting it on the blockchain, which then cannot be changed or deleted,” Hyperchain said in a statement. “This is the biggest difference [with traditional charitable donations].”