stimulus-integrity

Using Blockchain to enhance integrity within stimulus relief

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Integrity within Stimulus Aid

In the midst of this pandemic, Congress and the United States government have already disbursed $2 trillion, an act signed into law as the Coronavirus Aid, Relief and Economic Security (CARES) Act. The bill is aimed towards providing much needed, urgent relief to Americans and organizations negatively affected by the Covid-19 pandemic. Shortly after the bill was passed, it has become apparent how much of a logistical nightmare it has been to issue this aid, with numerous headlines bringing to light the systemic failings this bill has surfaced - not reaching many that it was intended for in the first place. Some of these headlines include the following:

The handling and distribution of these stimulus checks are in dire need of enhanced integrity and auditability, something that is very difficult to do without Blockchain at this sort of scale, to ensure that the funds reach the intended recipient safely and securely. Furthermore, the high-performance capabilities of EOSIO specifically are best suited for this particular use case, as the volume of checks to be sent in such a short timeframe will require the increased speed and utility that EOSIO provides over other blockchain protocols.

We have built a web portal as a demonstration of how integrity can be imbued into the disbursement of these stimulus aid packages using Blockchain technology.

To summarize:

  • A private EOSIO blockchain can be spun up by the IRS (or the controlling authority in charge of disbursing the funds), to which potential recipients can go to the portal and register an account on the blockchain.
  • This registration may include a KYC/AML process to ensure that each individual/organization controls a single, unique account.
  • Once potential recipients are registered and verified, they may sign in to fill out a survey to determine how much aid they are eligible to receive.
  • The execution of this survey process is implemented within a smart contract. This way, requests for aid can be handled quickly, affordably, and efficiently, and an auditable log is recorded on the blockchain of each recipient’s submission and how much they are owed.

Since this is built with EOSIO, it is prepared for the large influx of people and organizations seeking aid and unemployment insurance, unlike many of our current systems that struggled after a large spike of stimulus requests and unemployment claims. It is also much easier and cheaper to audit for the IRS since auditability and transparency of the records are baked into the EOSIO blockchain itself. All in all, using EOSIO makes sense here as it would allow us to disburse funds adaptably at scale with lightning speed while remaining safer and far more secure than any other system available to us today.

Note: this demo was modeled after the New York State Department of Labor Benefits Claims process

We hope this demonstration can shed light on a better way to distribute aid quickly, affordably, and verifiably to those in need during times like these. Many are still waiting to receive long-promised aid as they struggle to pay the bills. Some are told they will receive payments automatically and others are left confused when the amount they receive is not the same as the amount they were promised; either way, they have no way of verifying when and how these payments will arrive. And speaking to a real human on the other side is almost impossible when all else fails, with the IRS telling recipients NOT to call. It does not have to be this way.

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