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Tokenization into Action

Sphereon puts Tokenization into Action Aiding Children in Poverty

Every six months the municipalities of Weert and Nederweert in the Netherlands organize a clothing day event for children from low-income families. 

These families are typically awarded between €150 and €300 of credit to make purchases at supporting retailers.

Although highly successful, the administrative costs associated with organizing this event were found to be very high due mainly to the time required to double-check the expenses claimed by retailers and ensure the scheme wasn’t being abused. 

After hearing about this problem Sphereon, a company specializing in applying Factom Protocol’s blockchain technology to real-world problems decided to develop an app to solve this. 

The eBurgerPas app now allows municipalities to allocate tokenized funds to qualifying families. These funds are put into an electronic wallet which can only be spent by the families themselves during the specific days the clothing fair is run. 

When a purchase is made, a transaction is immediately recorded onto the Factom blockchain ledger. This makes the transaction immutable (unchangeable) and ensures that an entitled family has actually approved a transaction with an authorized provider at a recorded time. (Incidentally, no personal information is recorded on the blockchain.)

"Children sometimes just need a warm jacket. It is important that they get that. Through this initiative, children in poverty receive new clothes, instead of second-hand clothes. This contributes to their self-esteem and prevents bullying by other children. I greatly appreciate this initiative from the municipality and shopkeepers. It shows that everyone counts, on their own or with the help of the community. We do not leave children in the cold! "
Deputy Robert Housmans
Social Agenda, Care and Safety

With the payment process being conducted this way it means financial settlement between the municipality and retailers can be fully automated. The large amount of administrative work normally required is completely avoided, with the security to prevent abuse being embedded directly within the system. 

The use cases of this app could also be extended much wider and in the future, it is expected that this app will be extended to allow families free access public services such as theaters, swimming pools, and food banks.

“This is so nice. She has been able to buy beautiful Fila shoes and new jeans and a nice sweater. We just didn't have the money for that, I could never have given her that. ”
- A mother

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