Every once in a while a technology comes along that changes everything. To most observers, the latest to follow that trend is blockchain. It has the potential to revolutionize everything from currency to supply chains. Moreover, blockchain has the potential to bridge the gap between the developed world and developing nations like Nigeria like never before.
Does It come as a great surprise that emerging economies have the highest potential for adopting blockchains’ disruptive potential to the highest degree? Perhaps not.
What is Blockchain & How does it work
Blockchain is a distributed ledger that can do only one thing — record data and information immutably. This information could be anything from the details of a money transfer, digital identity, ownership record of a digital collectible, or your mark sheet where you scored terribly.
Similarly, what gives blockchains the real potential and rationalizes the hype around them is the way they do what they do. They provide a global, immutable, transparent, and decentralized way of storing data.
Blockchains are decentralized and are operated, updated, and secured not by a central entity but by peers using the blockchain. Anyone can participate in a blockchain and become a node to collaboratively govern and operate the network.
In simple words, blockchains create a network that is operated and governed by the common people and code instead of laws and institutions. There could be hundreds or even thousands of peers for a blockchain who become nodes to help process transactions and write new records on the transparent digital ledger.
Blockchain and emerging economies
here are a number of reasons why emerging economies are in many ways at the forefront of blockchain adoption. For many reasons, blockchain is becoming a must have technology. Developed countries are slowly reflecting their advancements in using this technology, whereas developing countries and emerging markets are gradually becoming the frontrunners in embracing its application. China, India and Nigeria are particularly some of the countries whose citizens are investing in blockchain.
So, why is this so you may ask;
1. Financial Inclusion and Security
Blockchain wallets can enable citizens of these hyperinflation-stricken countries to store fiat-pegged stablecoins such as USDT or cryptocurrencies like BTC which will offer them better financial security. Banks, of course, can hardly enable us to do that.
2. Social Welfare
The only way we can assure that the money reaches the people who need it is by ensuring it doesn’t vanish midway. To do that, we need a transparent system… which brings us to our beloved blockchain. Blockchains can record every transaction, every movement of the funds on a public ledger. This will force the middlemen to carry out their tasks without trying to falsify records. No more chances of passing money from beneath the table or hiding something inside the pockets.
When donors know exactly where their funds are going, more of them will come forward and make contributions, thus aiding welfare programs to help more needy people from developing countries.
We are already seeing real-life implementation of this. In fact, even the United Nations used the Ethereum blockchain in 2017 to send funds to Syrian refugees in Jordan.
3. Political Improvements
Whether or not we like to admit it, most things about politics are a bit shady to say the least. For one, corruption in the voting system plagues many countries. Using a blockchain-based voting system to register votes can ensure that no one can tamper with the vote count or register multiple votes without everyone noticing the change.
Besides, if combined with digital identities stored on a blockchain database, the voting procedure can be completely digitalized and made more secure. This will make voting more efficient, and save a considerable amount of money and time spent on elections.
4. Low transaction fee
Blockchain has a significant advantage — the transaction fee for sending money abroad has a lower transfer cost than other familiar money transfer services such as Western Union or MoneyGram.
As for cryptocurrency transfers — you can send your money as much as you want, anywhere you want, and at any time. Also, you don’t pay huge fees to a large number of intermediate banks. After all, when you transfer money using the blockchain, you have full 100% control over your money.
Blockchain systems can improve the lives of billions of the world’s poorest people.
Yes, blockchain is now new technology for the world. At first glance, it may seem that it is not worth being trusted. But all technologies, even the internet, passed through this barrier of doubt and mistrust, and today’s life without it is impossible!
We must take a sober look at the situation that at the very beginning new things seem uncomfortable and uncertain. All this has an unpredictable nature during the period of integration into people’s lives.
But it is what technology does to us: it always brings us new things that make life easier.