The word Blockchain immediately brings about certain popular terminologies attached with it like bitcoin and cryptocurrency. Certainly blockchain is the technology behind such cryptocurrencies. But what is a blockchain and how does it help?
It is a decentralized, peer to peer, immutable storage network. It is completely censor free and regulator free because of the absence of one single controlling unit. So this technology helps in providing a method to make electronic payments without needing any financial institution as a go-between. It is definitely the future of financial services providing ultimate benefits to the users in terms of low cost, high security and innovation over competitors. In the simplest form, it is the digital ledger that goes on forever.
Adaptation in Africa
African countries are new to the blockchain space but the banks have started to see the potential in it. Apart from financial institution other sectors also could benefit from this technology. It is gradually becoming a home to a number of crypto communities which are using blockchain technology to grow in their respective fields.
To mark the importance is this technology Kenya’s president Mr. Uhuru Kenyatta launched a blockchain and AI task-force for the purpose of deploying crypto technology in the country’s economic framework.
Simultaneously in Ghana, the government is shaking hands with the local tech junkies to make certain blockchain system that will help the citizens in one way or the other.
Similarly Sierra Leone also implemented this technology to tally votes during recent parliamentary elections.
Realization of Blockchain’s importance
So how is that the entrepreneurs and government of Africa is able to quite evidently understand the underlying benefits of this technology. There seems to be certain explanation for the rise of such complex thing in African world.
One of the main reason for African Banks being a fertile testing ground for such technology is comparably low customer base and smaller assets.
The electricity problem due to crypto mining can be mitigated with the completion of large solar farms in Morocco, South Africa, Uganda.
The ease in regulatory laws and policies when it comes to adoption of such technologies.
There is a long way to go before it becomes acceptable continent wide but it definitely is going to be an interesting watch.
It won’t be a matter of surprise if in future we witness the rise of an African cryptocurrency which will have a higher value than local currencies also in terms of stability and acceptability.