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Digital anthropologist Margie Cheesman has examined the effectiveness of blockchain technology in humanitarian projects, revealing that it often introduces more problems than it solves. Her research, detailed in the paper "Conjuring a Blockchain Pilot: Ignorance and Innovation in Humanitarian Aid," published on August 13, explores the impact of blockchain on a humanitarian initiative pseudonymously referred to as "Cash4Work."
Cheesman conducted her investigation from May 2018 to December 2019, focusing on a project based in the Al-Za’atari and Al-Azraq refugee camps in Jordan. The aim of Cash4Work was to provide cash assistance in exchange for work performed by refugees. The project utilized a blockchain system managed by a separate entity, known in the study as “The {Blockchain} Pilot,” to handle and process data.
Despite the promotional claims made by The Blockchain Pilot—asserting that blockchain would revolutionize humanitarian aid by improving efficiency and transparency Cheesman found that the technology delivered minimal benefits and introduced additional costs. The Blockchain Pilot was designed as a private, permissioned blockchain, limiting transaction processing to aid administrators rather than empowering recipients.
The research highlighted several key issues:
1. Complexity and Miscommunication: The use of blockchain created a fragmented and complex experience for both aid workers and recipients. The technology introduced new problems, such as miscommunications between supermarket cashiers and camp staff, resulting in confusion and inefficiencies.
2. Lack of Understanding: Many aid workers and recipients were unfamiliar with blockchain, further complicating the system. This lack of understanding led to ineffective use and management of the technology.
3. Perpetuation of Ignorance: Cheesman argues that blockchain projects often rely on "key forms of ignorance"—including confusion, illusion, disappearance, and misdirection—to attract funding and maintain power structures, rather than genuinely benefiting those in need.
While the report acknowledges that blockchain may have reduced transaction fees by bypassing local banks, it found no definitive evidence to confirm this benefit. The study’s findings echo concerns raised by a Digital Humanitarian Network report, which similarly noted that many blockchain applications in humanitarian projects fail to deliver substantial improvements.
