TiD emerges from the need to revisit how investment is done in developing countries. Current investment is done via a series of middle entities (governmental, intergovernmental, financial, corporate, nonprofit, non-governmental, etc.) which makes the contribution process and project selection highly centralized. These entities are driven by donor or investor compliance, which can be individuals, corporations, governments, or financial institutions. Moreover, the funding narrative might vary with the interests of the local community, lagging on a bilateral collaboration with more potential to have a long-term positive impact on the community of a developing region.
The historical origin of some of the major middle entities, happened after periods of social disruption. This is, after events such as the abolitionism, World War I, or World War II among others. This historical heritage drags traditional structures of governance, which slows the involvement of new technologies. The usage of technology is aimed to empower communities in a more efficient way, and to create new forms of organizations where local communities are more involved.
Blockchain technology presents advancements in administration, communications, and transparency. Its application in this industry contributes to the efficiency of the funding allocation processes, leaving more resources to empower local communities. Its decentralized nature creates novel entities that democratize decision making in projects and policies carried out in developing nations. Lastly, it presents transparency in the funding allocation process, providing confidence to the investor, previously treated as a donor. TiD steps at the front of this innovation movement, and helps existing organizations to adapt to new technologies.
TiD wishes to bring current efforts in funding developing countries to the next level of evolution. In our view, Blockchain technology will set the new paradigm for Impact Investing.