Africa in 2018 emerged as one of the most hospitable climates for blockchain innovation in the world.
An incorruptible digital ledger, blockchain was originally developed to enable financial transactions and cryptocurrencies such as bitcoin. But blockchain technology is now being applied in a huge range of situations.
Virtually immune to hackers, since the blockchain simultaneously hosts data on millions of computers rather than on any one central platform, transactions, contracts, even your identity, virtually any valuable information can be stored on a blockchain. With still-developing infrastructure, weak governance and the lingering effects of destructive colonialism that have given African citizens little reason to trust their governments, the platform is particularly attractive in African nations.
Playing a key role in building an inclusive global economy, at the same time, restoring public faith in government by eliminating inefficiencies and high transaction cost, blockchain has the ability to improve the financial services in the developing world.
Facing massive challenges with transactions and doing business, blockchain technology can provide simpler and cost-effective ways of working; reducing fraud; increase security and transparency, and remove human error and inefficiencies in the African continent.
Growing rapidly in the finance sector, the blockchain technology in Africa promises secure, transparent, seamless and convenient transactions. Although a relatively new technology, it seems promising in the banking industry. Banks are now starting to explore ways to adopt and apply this technology to the practical needs of the users.
Holding the potential for a massive impact in many areas of finance, blockchain’s adoption in banking could further push this technology across other industries. But moving funds in Africa can be costly, slow and complicated. Yet, the blockchain technology has the potential to enable access to financial services that too instantaneously.
But to achieve mainstream blockchain in Africa needs to overcome these challenges –
Not only financial institutions but even other industries, the entire ecosystem needs to adapt to the changes the blockchain application will bring with it. Doing business in a developing country is rather cumbersome with many stakeholders involved and the main challenge is how to make all these stakeholders trust and use blockchain technology.
The African government will need to enforce regulations that would enable African entrepreneurs to operate on a global scale.
Only 31.2% African population have access to the internet connection and to use blockchain a good internet connection is a must.
Undoubtedly Africa is slowly yet steadily moving to blockchain technology but it will only be able to adopt global blockchain to bring prosperity to the African continent when these small hurdles will be cleared.
That being said, Africa also has a significant advantage over other continents. With few legacy systems in place, the African innovators have an opportunity to jump over outdated technologies and jump straight to the latest innovation of the blockchain technology.