The Spanish Red Cross launches the blockchain aid distribution system RedChain, balancing transparency of funds flow and recipient privacy protection.

The Spanish Red Cross officially launches RedChain, a blockchain-based aid distribution system that ensures transparent and verifiable flow of donation funds while fully protecting the privacy of beneficiaries. This system is seen as an important practical example of combining blockchain and privacy technology in humanitarian aid, addressing the dual needs of donors and public welfare organizations for “traceability without exposing personal data.”

Digitalization of the Entire Donation to Distribution Process

The core goal of RedChain is to digitize the entire aid process from donation, allocation, to actual use. Developed jointly by Barcelona-based blockchain infrastructure provider BLOOCK and zero-knowledge proof company Billions Network, the platform uses the Ethereum blockchain as its verification layer.

In practice, the Spanish Red Cross issues ERC-20 style aid points on Ethereum, replacing traditional paper vouchers or prepaid cards. Beneficiaries can receive points via mobile wallets and use QR codes at participating merchants, making purchases just like with regular electronic payments.

Personal Data Not On-Chain, Blockchain Only Acts as a “Witness”

Unlike typical blockchain applications, RedChain deliberately separates “transparency” from “identity information.” The names, contact details, and case records of beneficiaries are kept entirely within the Spanish Red Cross’s internal system and are not written onto the blockchain.

The public blockchain is only used to record transaction hashes, timestamps, and integrity proofs, ensuring that each aid distribution and usage record cannot be tampered with afterward, without involving any personally identifiable information. Donors and administrators can verify fund flow and usage without being able to deduce any beneficiary identities.

Responding to Donor Accountability Pressures While Protecting Beneficiaries’ Dignity

The Spanish Red Cross states that the design of RedChain is a response to the dual pressures faced by humanitarian organizations in recent years: on one hand, donors demand higher transparency and verifiability; on the other hand, the privacy and dignity of vulnerable groups must also be protected.

Francisco López Romero, CTO of the Catalonia branch of the Spanish Red Cross, explains that aid seekers should not be forced to choose between “receiving aid” and “protecting privacy.” By integrating digital points with everyday shopping scenarios, beneficiaries can check out at supermarkets without being labeled as aid recipients, reducing social stigmatization risks.

Hybrid Trust Architecture, Making Blockchain a “Public Notary”

Technologically, RedChain adopts a hybrid trust model: aid points and verification proofs are recorded on-chain, while actual eligibility checks and transaction details are stored in off-chain databases, linked through cryptographic proofs.

BLOOCK CEO states that this design allows blockchain to act as a “public notary,” only responsible for proving that certain events occurred, without revealing content or identities. Billions Network uses zero-knowledge proof technology to enable beneficiaries to prove their aid eligibility without revealing their identity or personal attributes. These proofs are stored by users in their wallets, not in centralized identity databases.

Providing a Replicable New Model for Humanitarian Aid

Overall, RedChain is not just a technological upgrade but also offers a replicable governance model for humanitarian aid: maintaining high transparency and accountability while avoiding turning vulnerable groups into traceable data objects. As encryption technology and privacy protection tools become more mature, such “privacy-first” blockchain applications are likely to play a more critical role in public welfare and social governance in the future.