1. BLOCKCHAIN TECHNOLOGY IN AFRICA:
Introduction
Have you heard about the Internet of things (IOT) and cloud computing? Then, think about Blockchain as one of the latest innovations in that sequence. It is a distributed ledger technology with a huge potential to cause major economic, political, environmental and social transformations in Africa.
According to the World Economic Forum (WEF), blockchain is considered as one of the computing ‘megatrends’ that is likely to shape the world in the next decade.
In simple terms, a blockchain is a data structure that makes it possible to create a digital ledger of transactions and also share them securely.
The absence of a central authority or a middleman such as financial institutions and the extreme difficulty in changing or removing data blocks recorded on the ledger, helps to reduce transaction costs and integrity violations (for example, fraud and corruption).
Blockchain Technology in Africa
Over the past decade, more African countries have embraced digital solutions for money transfers and have experienced the advantages of using such technologies.
Yet, Sub-Saharan Africa has over 350 million of unbanked adults (the second highest population) in the world and two-thirds of Sub-Saharan Africans don’t own a bank account. Nonetheless, foreign remittance remains a primary source of income for many African communities and households
All these point to the fact that a new way to move value on the continent is important. Blockchain technology — distributed ledger solutions — is rightly positioned to solve the problems. Thus, there is a greater potential for socio-economic inclusion, through enhanced financial security.
Three Opportunities of Blockchain Technology in Africa
1. Cross-border transactions: Most African countries use different currencies and this has led to difficulties in making seamless financial transactions with each other. The introduction of cryptocurrencies (a form of Blockchain technology) has solved this problem, leading to seamless and reliable trade between countries. As bitcoins (and other coins) become a common currency in Africa, it is poised to create millions of jobs in the private and public sectors.
2. Easy Market Access: The introduction of distributed databases has removed barriers such as intermediaries (e.g. banks), which means that financial transactions can be executed faster, with a reduced transaction fee.
3. Improved Business Environment: Small-scale and medium enterprises (SMEs) contribute greatly to the economy in Africa, blockchains can facilitate better credits to small businesses leveraging on smart contacts.
Challenges of Blockchain Technology in Africa
Poor Infrastructure: block chains run on the internet and through digital devices, yet several African nations still struggles to develop the infrastructural facilities to speed up development. Several households still lack electricity and are unable to access the internet, thus they won’t be able to use blockchain technologies.
Government Policies and Political Will: Most Governments in Africa are skeptical about the blockchain technology and their vote of skepticism will keep most citizen to ignore it as an alternate and seamless mode of transaction. The slower the change in policies to move to modern technologies, the slower the acceptance rate of the blockchain technologies on the continent.
Conclusion
Over the past 10 years, blockchain technology has shown promise and brought innovation in its application across many domains (such as security, education and health) on the African soil. This means Blockchain has come to stay in Africa and will lead more innovative solutions in the future.
OFFICIAL LINKS
website: (coming soon)
twitter: https://twitter.com/scrate_io
telegram: https://t.me/scrate_io
medium: https://scrateio.medium.com/
