Improving Grant Management with Blockchain Technology

Asia Blockchain Review
January 27, 2020

The U.S. Treasury Department and the National Science Foundation (NSF) have developed a blockchain-enabled system that allows the payments and terms of grants to be better monitored, while using a blockchain-powered Letter of Credit (LC) to facilitate peer-to-peer fund transfers.

Testing Blockchain-enabled Letter of Credits

According to GCN, the U.S. Treasury Department and the NSF have been conducting tests on the use of blockchain-enabled LC that will help improve the process of grant management.

Craig Fischer, Innovation Program Manager at the Treasury Department, revealed that instead of relying on reports from the prime and sub-grantee recipients, the NSF will be able to use blockchain technology to monitor grant payments as well as whether the terms of the grants are observed by grant recipients.

Meanwhile, grant recipients will be required to submit fewer documents to the NSF.

Fischer added that the Letter of Credit will also allow peer-to-peer fund transfers, while grant recipients will need to set up an e-wallet to receive the tokenized LC.

Adopting Blockchain in the Scientific Community

Additionally, Fischer revealed that the Treasury Department’s innovation group has been jointly developing the project with San Diego State University, Duke University, and the NSF since September 2019. The project is expected to be finalized within January 2020.

Meanwhile, the department has been seeking blockchain-based solutions to improve the management of grants and properties for the past few years.

In 2018, a pilot project was established to develop a blockchain system to improve the management of the department’s physical assets, as the agency has deemed that the technology possesses “great potential for streamlining burdensome reconciliation operations that are involved in many financial transactions.”


About Asia Blockchain Review

Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. It aims to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

Our goal is to cultivate and encourage a collaborative community for our members to gather, share their experiences and endeavors in the blockchain space, and brainstorm the potential uses of blockchain technology.

Follow Asia Blockchain Review on:

    Related Article
    Disrupting the Blockchain Landscape with EMURGO – The Official Commercial Arm of Cardano
    Asia Blockchain Review recently spoke to Ken Kodama, CEO of EMURGO — the official commercial and ven...

    December 9, 2019

    Lightbulb Capital Founder on the Future of Blockchain in Finance
    Asia Blockchain Review recently spoke to Daniel Liebau, Founder of Singapore-based Lightbulb Capital...

    November 18, 2019

    Tackling the Challenging Scalability Issue with Matic Network
    Asia Blockchain Review recently spoke to Chandresh Aharwar, VP of Marketing and Strategy at Matic Ne...

    November 3, 2019

    Developing the Proof of Believability for Decentralized Networks
    Asia Blockchain Review recently spoke to Terrence Wang, co-founder of IOST, an ultra-fast, decentral...

    November 2, 2019

    We provide information about Asia Blockchain Review latest activities as well as global blockchain news and research. Subscribe to our Newsletter now or Contact us