SahayChain: Intelligent Welfare Aid Traceability System

Abstract

Most of the charitable organizations face inefficiencies, mistrust among donors, and misutilization of funds due to a lack of transparency in their usually cash-based donation mechanisms. This work proposes SahayChain-an intelligent welfare aid traceability system that will integrate blockchain and artificial intelligence to develop a transparent, accountable, and efficient donation ecosystem. Item-based donation is offered on the platform, wherein the donors fund the verified NGO requests fulfilled by registered suppliers. Blockchain maintains immutable logs of transactions with automated fund release via smart contracts. AI modules enhance the reliability through anomaly detection, demand forecasting, supplier recommendation, and sentiment analysis. The hybrid architecture ensures traceability of every contribution from donor to delivery, hence reducing fraud and maximizing the impact. Experimental validation confirms that the model has improved transparency, fairness, and trust for all stakeholders and is further positioned as a scalable model for digital humanitarian aid management.

Introduction

The document presents SahayChain, a blockchain- and AI-powered platform designed to improve transparency, trust, and efficiency in charitable donation systems, especially in welfare contexts like orphanages and NGOs.

Problem

Traditional donation systems are mostly cash-based, opaque, and prone to misuse, making it difficult for donors to track how funds are used. Existing digital solutions also lack full transparency and intelligent automation, leading to low trust and inefficiency.

Proposed Solution

SahayChain introduces an item-based donation system where donors directly fund specific needs of NGOs, and verified suppliers fulfill those needs. The entire process is made transparent and traceable using blockchain, while AI handles decision-making and fraud detection.

Core System Components

• User Interface (ReactJS): Separate dashboards for donors, NGOs, and suppliers
• Backend (FastAPI): Manages requests, APIs, and system coordination
• Blockchain Layer (Ethereum smart contracts):
  • Immutable donation records
  • Escrow-based fund release after delivery confirmation
  • Transparent audit trail
• AI/ML Layer:
  • Fraud/anomaly detection (Isolation Forest)
  • Demand forecasting (LSTM/Prophet)
  • Supplier recommendation system
  • Sentiment analysis for feedback evaluation
• Database & Cloud: PostgreSQL + cloud storage with blockchain-linked verification

Workflow

1. NGO submits item-based request
2. AI checks for fraud or abnormal requests
3. Approved requests are shown to donors
4. Donor funds request → smart contract holds money
5. AI selects best supplier
6. Supplier delivers items
7. NGO verifies delivery
8. Smart contract releases payment
9. Feedback is analyzed to improve supplier ratings

Key Innovations

• Shift from cash donations to item-based traceable donations
• Combination of blockchain (transparency) + AI (intelligence)
• Automated supplier selection and fraud detection
• Sentiment-based feedback system for continuous improvement

Results

Compared to traditional systems, SahayChain provides:

• Full transparency via blockchain (vs limited manual tracking)
• AI-based fraud detection (vs none in existing systems)
• Automated supplier matching (vs manual processes)
• Quantifiable donor feedback and impact reports

Overall Summary

SahayChain is a fully integrated intelligent donation ecosystem that ensures donations are traceable, fraud-resistant, and efficiently distributed, improving trust between donors, NGOs, and suppliers through a combination of blockchain immutability and AI-driven decision-making.

Conclusion

This paper presented SahayChain, an intelligent welfare aid traceability system that leverages blockchain along with artificial intelligence to establish transparency, accountability, and efficiency in charitable donations. The proposed framework replaces traditional cash-based donations with item-based and verifiable transactions, linking donors, NGOs, and suppliers into a unified ecosystem. Smart contracts based on blockchains will provide immutable records, automated fund release, and confirmation of tamper-proof delivery of aid. AI and ML modules comprising the process for fairness, optimization of resources, and prevention of fraudulent activities include anomaly detection, demand prediction, supplier recommendation, and sentiment analysis. Partial implementation is done to validate the feasibility of integrating blockchain and AI technologies to provide solutions for real-time humanitarian sector challenges related to transparency. Initial results demonstrate increased donor trust with more operational reliability that allows traceability. Scaling SahayChain up to support large NGO networks, deployment of the system on a public blockchain network, and enhancing the AI models using real-world data to make them more accurate and adaptable are the future scope of work for SahayChain. This integration of emerging technologies positions SahayChain to serve as a sustainable and scalable solution for transforming the management of digital humanitarian aid.

References

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Copyright

Copyright © 2026 Anshu Jaiswal, Sujal Vishwakarma , Prajwal Kotian, Sunita Naik. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.