The blockchain is one of the major tools to drive the next industrial revolution. Therefore, nations are constantly fine-tuning the technology for various applications as the potential embedded in it are limitless. It is safe to say that the current blockchain craze is slowly creeping into even the most conservative territories. As such, we will be focusing on the progress and potentials of blockchain in Africa.
Blockchain in Africa
Over the years, bitcoin and other cryptocurrencies have become one of the favored investment options by young and informed African entrepreneurs. As a result, the number of Africa-based crypto exchanges has increased exponentially to cater to the increase in demand for cryptocurrencies.
Earlier this year, the bitcoin boom in some territories in Africa was highlighted when bitcoin ATMs were installed in Zimbabwe, South Africa, and Kenya. At the moment, there are four functioning Bitcoin ATM on the continent.
These developments prove that citizens of African nations are not afraid to explore the possibilities and applications of the blockchain. However, if the continent is planning on catching up with the rest of the world, it has to do more to support the implementation of blockchain in various sectors of its economy.
What Are The Potentials Of Blockchain In Africa?
Blockchain would thrive in flawed and unstable systems found in the majority of African nations. Its decentralized functionalities will effectively put an end to the inefficient ways of doing business in Africa. Therefore, let’s take a look at some of the potentials of blockchain technology in Africa.
1. Blockchain Can Improve Existing Cross-Border Supply Chain Systems
Africa’s economy thrives on the exportation of goods, farm produce, and oil, however, the existing supply chain system is flawed. However, there are many middlemen in this system, therefore, returns on investments are meager. The implementation of blockchain-based systems that will run on smart contracts will correct this system.
2. Blockchain Can Improve the Healthcare System
Moreover, one of the major challenges facing many African nations is the inefficacy of healthcare systems. Medical practitioners are not well equipping as many healthcare facilities still utilize outdated storage systems. The introduction of blockchain to this sector will help practitioners make the correct diagnosis while promoting the transparency of the industry.
Meanwhile other sectors in Africa that would be positively disrupted by blockchain include:
- Voting systems
- Identity verification systems
- Food supply chain
- Land Registry
- Electricity distribution system
The blockchain is not a new concept in Africa. There are many blockchain projects exploring in various territories in the continent. In May, Coinpedia reported that Ethiopia is exploring ways blockchain could be implemented in agriculture. A month later, South Africa Reserve Bank announced that it had successfully utilized DLT for some of its operations.
However, the introduction of blockchain-related regulations by African governments will fast-track the implementation of these projects and many more in the pipeline.
Additionally, you can find more relevant coverage here:
- Will Blockchain Replace the Existing Technology?
- Scope of Blockchain and Cryptocurrency in South Korea
- Top 50 Largest Public Companies Exploring Blockchain
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