The blockchain is one of the main innovations that are driving the next industrial revolution. The nations are constantly looking to improve the state of the industry and government with technology. It is safe to say that even the most conservative countries are getting interested in the blockchain and all the things it can help with. Today we will be focusing on the potential use of blockchain in Africa.
Blockchain in Africa
In the last couple of years, cryptocurrencies have become one of the favored investment options for young African entrepreneurs. The increasing interest in digital assets led to the rise of Africa-based crypto exchanges, helping meet the demand for cryptocurrencies on the market.
When first Bitcoin ATMs were installed in Africa, there was a boom of interest and demand for digital currencies, especially Bitcoin. According to Coinatmradar — there are 7 Bitcoin ATMs in Africa. The leading country is South Africa with 4 Bitcoin ATMs, while countries of Zimbabwe, Kenya, and Djibouti each have 1 Bitcoin ATM.
The progress in this field shows that African nations are not afraid to explore the potential applications of blockchain technology. Still, if they want to make a significant impact, the countries need to invest more in the implementation of the blockchain in different sectors of the economy.
Potential Use Cases of Blockchain In Africa
Blockchain could be the solution for unstable systems found in the majority of African countries. With the introduction of the decentralized functionalities, it would effectively put an end to the inefficient ways of governance and aid business operations. Here are a couple of use cases where blockchain could bring a lot of value to the users:
1. Improvement of Cross-Border Supply Chains
Africa’s economy is focused on the exports of goods, farm products, and oil. However, the supply chain systems in place are often inefficient. There are numerous middlemen in the system, increasing the costs and reducing the return on investment. The implementation of blockchain in combination with smart contracts could help fix those problems.
2. Healthcare System Improvements
Furthermore, one of the biggest challenges the African nations are facing is the healthcare system inefficiency. The medical staff is not well equipped and many healthcare facilities still use outdated storage systems. The blockchain could make things better in this area, as well as preserve the privacy of the patients while promoting transparency in the industry.
3. Energy Supply Regulation
There is a number of companies interested in building energy infrastructure such as solar panels or windmills in Africa. The only thing holding them back are potential misuses from the moment when the grid takes over the energy. Blockchain could help tackle this problem by recording all transactions and regulate supply according to demand.
4. Property and Identity Management
Blockchain could help in this area too. Narigamba Mwinsuubo, the founder and CEO of Bitland, a blockchain-based land registry startup, hopes that the project will help Ghanaian farmers lift out of poverty by making it easier for them to document and confirm land ownership. The banks refuse to give loans without proof of land ownership, and often do not trust the documents as they are easily forged. By having the ownership confirmed by an immutable blockchain, the authorities could be sure that the land actually belongs to the owner and help them get all the benefits.
The other sectors in Africa that could be disrupted by blockchain include:
- Voting systems
- Food supply chain
The blockchain is present in Africa in the same measure it is present in the rest of the world. Every day there are more and more projects exploring the blockchain technology. The areas of particular interest are agriculture, banking, and governance.
As soon as the blockchain-related regulations are introduced by African governments we will, without a doubt, see rapid growth in the development and implementations of blockchain technology all across the African continent.