In the wake of the 2007/08 financial crisis, there was general agreement that the world needed a better system. A new system where financial institutions would seize control over the countries’ wealth. In response, Satoshi Nakamoto brought the world bitcoin and blockchain technology, thus launching a massive decentralization movement.
A similar libertarian movement is currently underway in Africa, although at a much slower pace. In general, Africa is a continent pegged with problems that need solving. If indeed blockchain technology is to solve the problems that arise from centralized systems, then Africa will be the backdrop for its successful adoption. With this purpose in mind, the true worth of blockchain technology is more likely to manifest in Africa than anywhere else in the world.
The Best Place for Blockchain-Powered Disruption
Of course, Africa has a lot of problems. At the same time, all these problems can be brought under control with the key principles of blockchain. For instance, the continent has the most corrupt governments in the world, where wealth and power are under a handful of people. Blockchain’s transparent nature can help in elections, international remittance, and stamp out corruption in institutions. Moreover, some initiatives have begun to address the problem of energy distribution and providing financial services to the unbanked population. Certainly, there are a lot of reasons that make Africa the best place for blockchain-powered disruption.
Africa and a Sharing Economy
Firstly, consider the financial system of Africa. The barriers of opening a bank account are high, forcing the majority of the population to rely on traditional forms of storing money. Despite the fact that individual’s retain control over their money, storing your money collectively as a community under the custody of a single individual, is hardly efficient, let alone safe.
Africans have to rely on other rather unorthodox methods to store their money. With blockchain technology, Africans can be guaranteed of social and solidarity finance. In other words, blockchain can eliminate intermediaries, replacing them with peer-to-peer banking, where control and flow of funds are governed by smart contracts. As a result, banking in Africa can be made efficient and less prone to corruption.
Secondly, blockchain technology can facilitate the disruption of energy in Africa. A blockchain solution for energy distribution is under the
Thirdly, blockchain technology for improved cross-border payments and remittance can facilitate intra-Africa trade. Arguably, this can be the best use case for blockchain in Africa. At the moment, traders have to deal with a lot of friction when making cross-border payments. Considering the recent plan by African nations to create a continental free trade agreement, blockchain-powered cross-border payments and remittances could play a pivotal role in Africa’s economic growth.
Clearly, Africa is still years from blockchain adoption, but there are plenty of viable opportunities and already existing solutions.