Transparent Funding Transactions

A transactional system that provides transparency, auditability, and security to the state budget of social assistance to ensure that it is not used for political clientelism and corruption.

The specific problem I am trying to solve has existed everywhere for many years. However, more specifically in Argentina and other regions of Latin America, this has never been solved or given sufficient relevance.

I am discussing political clientelism, which consists of manipulating needy people with social assistance or other things through political pointers with the sole objective of obtaining votes (in Argentina, approximately 49% of the population). If someone does not do what they want, they start using all kinds of threats to change their minds.

This action of the political caste is illegal and ruinous since it attacks democracy and freedom in all its expressions. This also generates inefficiency in state budgets. For example, in Argentina, more than 69% of the money collected goes to social assistance. Moreover, this causes a massive level of corruption.

Why is this happening? This is simply because the state does not directly provide money to the beneficiary through a transparent and auditable system. Nonetheless, it goes through numerous useless intermediaries who retain some of them.

My transactional system consists of hybrid Smart Contracts, a particular type of instruction saved in the blockchain. They auto-execute actions according to a series of programmed parameters. The information necessary to complete smart contracts is found in official databases from the government to provide the exact quantity of money to specific people. To reach this connection between the decentralized network (Smart Contracts) and the world (official databases from the government), the My Transactions system uses Chainlink. This secure and decentralized modular oracle network connects information to the blockchain.

A certain amount of money (in this case, social assistance) is sent to a wallet software with easy access, high security, and reliability that arrives directly to a person already registered only with an address, which is created with a private key that provides the exclusive use of the funds.

With this innovative transaction system, we achieve many fundamental objectives, such as avoiding intermediaries and thus annihilating political clientelism. A list of verifiable and auditable transactions is generated through smart contracts, thereby destroying corruption.

Additionally, it is an economical and efficient system that can effectively use state budgets. Our system makes more than 30000 transactions to the average price of one of its competitors (antiquated systems).

In addition, we are sustainable because we take advantage of energy, reducing the amount of energy spent by 100% compared to the current system.

My solution will primarily affect all people who receive some type of social assistance given by the state (in Argentina twenty-two million people, annually, it costs $1.555.000.000) because it is responsible for sending state money without any intermediary. To avoid all possible forms of manipulation or political clientelism that are currently occurring.

In the lives of these people, there will not be a substantial change, since they would withdraw their money in a similar way to the previous one. Nonetheless, this solution has a large number of advantages.

Analogously, this measure applies to taxpayers and is mainly attributable to their benefit from the effective use of their money. On the other hand, it will attack the great social chaos caused by massive levels of corruption, because our proposal generates auditability, transparency, and security for the national budget.

When someone wants to develop a service, they must know their customers properly. That is why I previously served these people through volunteering and charity. Providing them with all possible advice and helping them avoid political clientelism. I believe that all inhabitants of Argentina or underdeveloped countries can understand what I am talking about. However, I have had a personal experience with this circumstance for years ago; some relatives belonged to this vast group of people manipulated by corrupt and malicious politics.

My experience as a founder and development leader of the Youth Financial Education Program in Argentina marked my short career. I have conducted a wide range of different activities, such as meetings with Deputies, Ministers and Senators to obtain their support in carrying out the proposal to the various provinces and also to know and understand the target audience to provide an adequate and integral service. I am certain that these experiences are vital for developing the current project.

In addition, I consider that negotiating is a key skill in ensuring the success of this initiative, so in the legislation of my country, I am promoting and supporting bills, which aim to use the blockchain to provide a good administration of state resources, such as in the Autonomous City of Buenos Aires.

Overall, I want to highlight that my solution is the first worldwide with the initiative of such an enormous scope consisting of blockchain technology and smart contracts.

On the other hand, my system is based on Web 3 technologies. That is why, I must know this topic properly, therefore I started a degree in web 3 at Alchemy University, regardless my age of fourteen years old.

To be able to understand the needs of the target audience and to achieve a service that comprehends the demand from the population, I have done several volunteers to consolidate a direct deal with future users where I also listen carefully to their problems with current services to build an adequate solution to their requests.

To obtain an inclusive and successful result, I received advice from future consumers on how to build a transaction system that is useful and not one of the many unproductive and failing systems.

To establish an overview and macro of this situation, I rely on various national statistical studies for better comprehension.

Transactions are controlled by people all over the world; therefore, we depend completely on the actions of these transactions. So, what would happen if someone uses this system flaw to illicitly enrich themselves?

In short, it generates massive inefficiency in all institutions and entities, harming only common citizens. Unfortunately, this happens everywhere and is called corruption. Therefore, dependency can be considered a significant disadvantage.

Hence, Transparent Funding Transactions will revolutionize this situation through innovation by making these transactions executed by algorithms in smart contracts and taking out the human intermediary.

Thus, once and for all, we will destroy the corruption business, in addition to avoiding manipulation and political clientelism, if we refer to transactions with state funds.

Additionally, a precedent is set that generates impacts and positive changes in all global markets through modifications in the operation of transactions.

The objectives of Transparent Funding Transactions are clear and concise.

Changing the lives of more than twenty-two million Argentines (recipients of social aid) makes them never suffer political patronage or manipulation.

Destroy and stop all massive levels of state corruption.

We are improving the state budget's efficiency, effectiveness, and usefulness.

Provide taxpayers with certainty about where their money is going.

Deliver solutions to social conflicts generated by social assistance.

Expand the use of this transaction system in the Latin American region since they suffer from the same problems.

To achieve these objectives, we must establish a system of auditable, transparent, secure, and low-cost transactions; therefore, in 12 months, I will follow this plan:

Finalize the integral development of Hybrid Smart Contracts and ensure the approval of the bill of application of blockchain on social assistance in the National Congress of Argentina (currently in process).

Then, we conducted experimental tests on specific and determined groups of people who received social assistance. Make all pertinent changes to the algorithmic code of smart contracts.

This system of transparent transactions should be increased Gradually and strategically until it reaches the entire population benefiting from this assistance.

Finally, we began the expansion to Latin America through specific planning for each region of the American continent. In a few words, it would work the same way as in Argentina, but with minor changes.

The main technologies used in the solution are as follows:

Blockchain uses this technology to make a single record that generates synchronized copies to make all transaction data immutable, making it impossible to manipulate them.

Hybrid Smart Contracts implemented in Ethereum and programmed in Solidity, execute the transaction when the predetermined conditions are met. The information for completing the contracts comes from Chainlink, which is a secure and decentralized modular oracle network. In this case, it is used to connect Smart Contracts to official databases from the government. After execution, information about the transactions is stored on the blockchain.

Wallet Software here goes the money sent by the Smart Contracts that is then withdrawn by the person to whom the social assistance has been sent.

By using these technologies in combination, we obtain an efficient, effective, fast, secure, auditable, transparent, and low-cost transaction system.

In the coming years, I plan for my solution to directly assist more than twenty-two million people, which will happen with complete certainty if the aforementioned work plan is fulfilled. In addition, it indirectly affects the entire Argentine population.

In the next two years, my solution will reach the vast majority of Latin American regions that provide some form of social assistance (approximately hundred and fifty million people).

I am entirely sure that I can achieve my objectives for the following year; however, some obstacles might appear along the way.

When we talk about making a change in the functioning of the state, it is obvious that privileged sectors that take advantage of system failures will manifest against this solution.
Fortunately, we are currently promoting a bill to force the political caste to accept a transparent and auditable transaction system for social assistance using blockchain.

In the development of services, the culture of future users is essential to success.
Therefore, I designed this system based on many experiences to provide inclusiveness and integrality. It is also important to highlight the tiredness of social aid beneficiaries due to the abuse of the policy sectors.

However, financing is a vital issue for all projects. In this case, a low-cost system generates resources that need to be reduced. Therefore, I plan to finance it at the expense of the current system, as well as the development of investment capital from technology companies that want to investigate innovative transaction systems.

I am currently working with Microsoft Founders Hub and negotiating with investment and incubation funds. In addition, I deal with deputies, senators, and legislators to promote bills on a transparent transaction system.

It provides value to the population since it avoids manipulation and political clientelism among the beneficiaries of social assistance and also generates financial inclusion through virtual wallets.

On the other hand, it creates confidence in taxpayers since they know where their money goes and prevents corruption, which causes enormous efficiency in the state budget.

The service I will provide will be a transparent, auditable, immutable, secure, and low-cost transaction system. I am using blockchain technology, Hybrid Smart Contracts, databases, chainlink, and other things to ensure these characteristics.

Directly, it will not provide a service to the beneficiary of social assistance but will give the transaction system to government entities.

This process will not affect when receiving assistance, so for the beneficiary, it would be the same, but with all its advantages.

This system is needed globally, but specifically in countries with high rates of corruption and leverage by politicians towards people in vulnerable situations. It destroys the main causes of the problems mentioned above, such as intermediaries, lack of security, and credibility in transaction records.  

The transaction system will be financed mainly by contracts with the government, and after the development of the system is finalized, and when it is established as the next official system, the state will pay for it, as it does with the current system for the service we will provide.

On the other hand, we will also finance ourselves through the investment capital of different companies because they are fully interested in the transaction system, which will improve the operation of the payment and collection areas. We are going to provide our transaction system as a service to all the companies.

Currently, we are financed by Microsoft Founders Hub (approximately an offer of 370.000$). 

Also, We are negotiating with investment and incubation funds.