The Stellar network, an open-source decentralized protocol, has recently been utilized to raise funds for Brazilian flood relief efforts. This initiative, spearheaded by the Brazilian engineering firm CheesecakeLabs, is a testament to the power of blockchain technology in empowering individuals and communities to make a real difference during times of crisis.
Leveraging Stellar Blockchain for Crypto Fundraising
In response to the devastating floods that hit the northern region of Rio Grande do Sul, Brazil, CheesecakeLabs launched a crypto fundraising campaign on the Stellar blockchain. The fund aims to provide aid to affected families, schools, shelters, and charitable organizations, leveraging the unique capabilities of the Stellar network.
“It’s incredible to see builders in the ecosystem who recognize the power of these solutions mobilize them to help their communities in times of crisis,” noted Stellar in an X post.
Marcelo Gracietti, the CEO of CheesecakeLabs, highlighted that crypto donations can be made using USDC, taking advantage of the Stellar protocol’s zero-fee and instant transfer capabilities. Donations in XLM, Stellar’s native digital asset, are also supported.
Why Stellar Blockchain Technology?
Stellar blockchain technology inherently provides a transparent ledger, allowing donors to track their contributions and gain confidence that their aid reaches its intended target. Additionally, the blockchain’s cross-border capabilities enable a wider donor pool to contribute to the relief effort, regardless of geographical location or financial standing.
The Stellar Consensus Protocol (SCP), an in-house consensus mechanism, forms the bedrock of Stellar’s lightning-fast transaction confirmations, typically completed within 3 to 5 seconds. SCP is environmentally friendly and demands negligible energy consumption compared to energy-intensive mining practices synonymous with Proof-of-Work systems like Bitcoin.
Stellar’s Track Record in Humanitarian Aid
The use of Stellar for crypto donations in Brazil is not the first instance of the network’s involvement in humanitarian aid. Last year, Stellar disclosed that the UNHCR is leveraging its open-source disbursement platform to send donations to Ukraine. This demonstrates the versatility and potential of blockchain technology in supporting positive social impact.
As the Stellar ecosystem continues to rally for the Brazilian flood relief efforts, it serves as an inspiration to the broader blockchain community. This development showcases the immense potential of these solutions to empower individuals and communities during times of crisis, transcending geographical boundaries and financial constraints.
