Programmable Payment Release Systems for Humanitarian Aid Using Blockchain Escrow Contracts

Abstract

Humanitarian aid programs frequently encounter challenges such as fund leakage, corruption, delays,
and limited donor visibility, particularly in regions with weak governance and fragmented delivery systems.
Traditional financial disbursement mechanisms depend heavily on intermediaries and manual verification
workflows, increasing the risk of fraud and mismanagement. This paper proposes a blockchain-enabled
programmable payment release system that leverages escrow-based smart contracts to improve transparency,
accountability, and trust in humanitarian financing. In the proposed model, conditional disbursements are automated
based on predefined triggers, including validated delivery receipts, biometric attendance, IoT-verified logistics, or
digital proof-of-service records. Donors, implementing agencies, and beneficiaries interact within a decentralized
ecosystem that ensures immutability, auditability, and tamper-resistant fund flows. The programmable logic
embedded in the smart contracts ensures that funds are released only when verified milestones are achieved,
significantly reducing administrative overhead, enhancing compliance monitoring, and improving the traceability of
aid spending. The system also incorporates multi-signature validation, oracle-based data feeds, and tiered
governance structures to support credible decision-making. Findings suggest that blockchain escrow mechanisms
can transform the humanitarian aid landscape by increasing efficiency, strengthening donor confidence, and
ensuring that vulnerable populations receive timely, protected, and results-based financial support.