Decentralized protocol Stellar Lumens has designed a new blockchain solution dubbed Stellar Aid Assist. According to the protocol, the new solution is a “first-of-its-kind blockchain solution to deliver instant and transparent digital aid at scale.”
The platform aims to ensure easy deployment of financial aid especially to those who are in dire need of monetary assistance.
Markedly, the platform will harness the functionality and blockchain infrastructure of the Stellar protocol to run its services which would include prompt and transparent aid delivery to those concerned. On-time delivery has been one of the hurdles faced by many aid providers over the years. It starts with the disbursing agencies that takes a long while before finally reaching out to the beneficiaries of the aid.
Another shortcoming has been the issue of a reduction in the amount of aid disbursed due to corruption on the part of the agencies involved. A handful of funding organizations are faced with this problem regularly. Considering a few of these factors, Stellar Aid Assist was launched to make a drastic difference in the way this particular sector has been operated in the past.
Stellar Network Offers Lower Rate
The protocol understands that such aids are meant to provide a means of survival for millions of people. Hence, Stellar Aid Assist has come to help these beneficiaries receive funds at the lowest rate possible. Its current large coverage as a digital payment platform in several regions makes it easier for the blockchain protocol to reach these millions of beneficiaries all over the world.
Already, the United Nations High Commissioner for Refugees (UNHCR) tapped the Stellar blockchain to send aid to Ukraine after its entanglement with Russia. Stellar Foundation would offer the United States dollar-backed stablecoin USD Coin (USDC) to Ukrainian refugees through the Stellar-based non-custodial mobile digital wallet Vibrant.
All USDC given as financial aid can be redeemed at any MoneyGram office. Eventually, the recipient of these funds can convert them to either dollar, euro or the Ukrainian local currency hryvnia.
With Stellar Aid Assist, any organization that wishes to give out aid would have to go through five steps amongst which is the distribution of funds to approved recipients over the Stellar Network. No information has been issued as to whether these aids will only be distributed in stablecoins.