How Blockchain elevates Africa
If you’ve been keeping tabs on Africa’s development landscape, you must have observed that so much technological advancement is taking place, most notably in the cryptocurrency space. Africa is not just Blockchain friendly. Blockchain is also Africa-friendly.
Entrepreneurs have realized that these financial capabilities can be used as a tool to inspire economic growth in Africa.
What is Blockchain and Why is it Important for Africa’s Development?
Blockchain is a digital ledger that is decentralized and open to the public, initially developed as a platform for exchanging virtual currencies. Examples include Bitcoin, Ethereum and Cardano.
Blockchain has proven to be versatile enough to create smart contracts for all sorts of applications and can improve transparency, efficiency, security, and trust between business partners in Africa. The technology makes transactions secure by permanently recording every transaction on Blockchain’s distributed ledger, ensuring that data is not manipulated or deleted.
This is because the pieces of data exist in numerous copies stored across computers around the world. The fact that no single entity controls Blockchain offers protection against fraud or censorship. Blockchain’s decentralized nature means that anyone can access it without a middleman.
Blockchain users have total control of their funds. They have a private key and password and don’t need the bank or any central authority to access the chain. It is a global network, so it doesn’t matter where you live – Blockchain works all over the world.
How Blockchain Can Help Stimulate Economic Growth in Africa
Cryptocurrencies like World Mobile Token (WMT) give Africans faster international remittance services at competitive rates. World Mobile and their Cardano token provide internet connectivity to areas without internet access, making them the first mobile provider built on blockchain.
This means that people in Africa can now grow their economy. It’s easier for African companies who want to expand globally without having to invest heavily in currency conversions and will likely be only a matter of time before commodities can also be purchased.
Consequently, Blockchain can elevate African economies by making it easier for African businesses and entrepreneurs to work together across borders. This way, it will be easier to develop fresh opportunities for growth.
Consequently, cryptocurrencies like WMT which are based on connectivity and transactions have real value and unlike other tokens makes their potential promising.
How Blockchain Can be Used to Increase Transparency and Trust in Business
In Africa, Blockchain technology can be used as an open ledger for recording transactions between companies and citizens with transparency and accountability built-in. In fact, Blockchain could provide African businesses with a higher level of trust, something that has been difficult to achieve in some places.
Blockchain cannot be altered. Blockchain also ensures data privacy because users only see the information relevant to transactions they are party to.
Blockchain is particularly useful in countries where access to official records is limited by corruption or bureaucracy. Thus, Blockchain technology can help African businesses reduce the risk of fraud, and money laundering. It can also help reduce the risk of other misconduct that weakens financial relationships between business partners.
Financial Benefits from using Cryptocurrencies
In Africa, Blockchain technology ensures that the money you send will go directly into your family’s wallet within minutes. No more delays due to bank holidays, overworked staff, wars, epidemics, or the need to travel to the bank.
Blockchain also makes it easier for African investors living abroad to send money home in an affordable way without having to go through ridiculous fees.
Blockchain empowers people in Africa by giving them financial control without government censorship and is less risky since accounts are encrypted and can be created anonymously, so people don’t have to worry about theft or extortion.
The Potential for Blockchain to Revolutionize the African Economy
Blockchain has tremendous potential to revolutionize Africa’s economy. As mentioned previously, the technology will make it easier for African governments to fight corruption and collect taxes.
This is because; the technology stores data in a way that makes it easy for auditors to cross-check transactions. Blockchain can also help Africans track down funds that have been stolen from corrupt leaders.
This will give Africa more resources to invest back into its economy while reducing the number of disputes between business partners.
So Blockchain can improve relations between companies doing international business together. Blockchain’s decentralized model could also be a better way to manage land records.
Blockchain is still at a relatively early stage in its development, but it has enormous potential for Africa’s economy, commodities, and connectivity. It can empower Africans with financial control over their own wealth.