Recent years have seen a gradual rise in the popularity of the blockchain innovation discussion, as more countries assess the potential that blockchain technology offers. People have been looking for better ways to pay and be paid throughout history, from barter systems and bargain frameworks, to coins, cheques, credit cards, and most recently, blockchain-powered cryptocurrency. Due to its potential to transform industries like banking, finance, health, insurance, telecommunications, entertainment, gaming, early-stage startups, and e-commerce, blockchain has since emerged as a major topic of discussion in the global economy.
Blockchain is a decentralized database that is free from any central authority or organization, making it the ultimate winning element. It should not come as a surprise that Blockchain has established its own standards in Africa, creating a variety of opportunities, some of which include luring investors and convincing them to make substantial cryptocurrency investments in the African Continent. Blockchain technology has a substantial advantage that is already being felt in nations like Ethiopia. The Ethiopian government officially announced in April 2021 that it has signed an agreement to use a decentralized digital identity solution to build a national database of student and instructor IDs. According to multiple sources, including Down To Earth, this agreement calls for 5 million students across 3500 schools to be provided with identification, which will then be utilized to maintain academic information.
All Africa applauds the deployment of blockchain technology by the African Continent. Blockchain dominates e-payment platforms in Africa, whether in Kenya, Zimbabwe, Ethiopia, Nigeria, or South Africa. Blockchain technology is frequently operating in the background, serving everyone from the tech-savvy younger generation in Africa who have acclimated to rapid technological advancement to the daily wagers looking for dependable and secure payment ways.
What does this indicate for Africa’s economic development? According to a report by Briter Bridges, there are significant blockchain technology trends that aid African businesses in overcoming many of the structural obstacles and shortcomings that have traditionally prevented them from competing on a global scale. It’s simpler for African businesses to go worldwide without having to invest much in currency conversions, and it won’t be long before commodities can be bought as well. Therefore, by making it simpler for African enterprises and entrepreneurs to collaborate across borders, blockchain can boost African economies. It will be simpler to create new growth prospects in this manner. The logistics sector in Africa has a tremendous amount of room to grow thanks to the adoption of cryptocurrencies and the increased trade freedom made possible by the African Continental Free Trade Area Agreement (AfCFTA).
Blockchain innovation has made a noteworthy impact on the gaming industry. Without a doubt, the future of gaming is blockchain gaming, the most recent trend in the industry. Blockchain technology has created new avenues for gaming, revenue generation and player rewards. Blockchain-based in-game assets that players earn have value and come in the form of cryptocurrencies and non-fungible tokens. According to a Quartz Africa survey, 186 million Africans are currently active online game players. Over half of the population is under the age of 25. Gaming businesses that use blockchain technology can gain a lot from these figures.
We could borrow a page from Nairobi, Kenya-based Usiku Games. Usiku Games is strategically incorporating health insurance savings into the fundamental structure of gaming in an effort to wring some social gain out of gaming and to enroll more Africans in the national health insurance schemes. In a pilot scheme, players can actually “spend” their winnings on purchasing health insurance by storing them as digital tokens on a blockchain system. This is supported by Quartz Africa, which claims in a recent article that Usiku Games is encouraging young Africans to obtain insurance by doing so.
While Blockchain has all these significant benefits, it’s vital to remember that not everything that glitters is gold. The drawbacks of blockchain are not insignificant. To reduce the amount of fraud, countries are regulating it. For instance, the Ethiopian government has outlawed cryptocurrency use in an effort to manage it. According to a recent report by Africa News, the National Bank of Ethiopia (NBE) issued a warning that digital currencies are being utilized in money-laundering schemes and shady financial activities. According to EuroNews, this is true for a number of African nations, including Algeria, Egypt, and Ghana. These nations have openly outlawed the use of Bitcoin and other cryptocurrencies, and anyone caught transacting in them faces severe penalties.
Within acceptable standards of use, blockchain technology is yet another game changer for
Africa. With useful inventions and technologies, the continent is steadily evolving and progressing every day. Although blockchain adoption is still in its infancy in Africa, it is already having a significant social, cultural, and economic impact. If you still do not employ blockchain technology, it is imperative that you do so after reading about its advantages, and benefit from this exceptional money-making asset.