Blockchian-Powered Micro Scholarships Enter Education Market
An online education platform has announced the launch of an open-source micro scholarship system that is powered by blockchain.
BitDegree launched the scholarship system that will allow donors to monitor how their contribution is used in real-time. Using blockchain technology, the system works similar to the way advertisers run Google ad campaigns. It allows individuals who donate to set the rules for their contributions and control how to spend the amount as well.
“All of this is possible because of the system that BitDegree has developed for recording educational achievements, where they are inscribed into blockchain as immutable credentials at the most granular level,” the platform said in a release.
“Blockchain credentials serve as secure and transparent rails on which then decentralized payments can run. Sponsors can issue scholarships, educators get paid for their work, learners can receive sponsored education and financial incentives for motivation.”
According to Giving USA 2019: The Annual Report on Philanthropy for the Year 2018, American individuals, bequests, foundations, and corporations gave an estimated $58.72 billion towards education.
The new system developed by the company will directly transfer scholarship amount to the accounts of recipients bypassing the intermediaries like education charities, which will also ensure an overall cost-effective implementation. It also provides direct grants to learners to cover the opportunity costs of learning or simply motivate them to learn.
“The solution also enables sponsors to implement targeted education funding for a new market that was previously underserved due to the complexity of reaching and motivating it. ,” the company added.
Currently, the scholarship system is only available on BitDegree platform and is open for other interested organizations and charities to join.