Africa: you may like cryptos, but you should love the blockchain. ( part 1/2)

How we act in society is, in some cases, largely impacted by our surroundings. Therefore changing yourself begins with adjusting your environment. As a child, we all have dreams to develop and reach our full potential. Nobody goes through life intending to be unsuccessful; while this is valid around the world, it is even more so when growing up in Africa. At a young age, you are taught all universal values, but as you advance in life. Reality starts catching up with you, and you become affected by the environment you find yourself in.

The lack of « trust » in the system becomes even more critical as you begin your adult life. Unfortunately, this struggle is not just an African story, but a very common one in geographies where the system fails to provide a healthy amount of « trust. »

Solving this hindrance is not an easy task and requires more than just a political will. Over the years, advanced economies have developed and implemented initiatives, including institutions that support and protect companies as well as consumers. However, these tools are not mature and sometimes not available everywhere around the world. Moreover, as we are evolving in the modern age, not all nations have the luxury to enjoy stability and prosperity. As a result, the gap between rich and poor is ever widening. 

Re-designing « Trust » in Africa and around the world is overdue, and there is a solution. Together with smart contracts, the blockchain has the power to address the problem in a very radical way. In this article, we will explore further how these two technologies can help. 

What are « the blockchain » and smart contracts?

Before we dive deep into the detail, let’s first define the « blockchain. It is a system used to record the information in blocks, making it difficult or impossible to alter, hack, or cheat. Furthermore, data stored in a blockchain is decentralized; therefore, the attacker would need a considerable amount of computing resources to make a dent in the system of record. On the other hand, smart contracts are only programs saved on a blockchain that operate transactions when predetermined requirements are fulfilled. In perspective, this type of system would allow farmers to sell their goods on a platform without the fear of being cheated and avoid high fees imposed by the bank to secure the transactions between parties. In order words, « trust 3.0 » is enforced by the blockchain and can be applied to several other use-cases. 

Why Should you care? Because it matters for many people around the world.

According to Pew research center, « Crime and corruption » rank among the Top Problems in Emerging and Developing Countries. In addition, there is a quote by Tupac Shakur « Before we find world peace, we gotta find peace in the war on the streets. » solving 21th-century problems in Africa starts by restoring trust, and the blockchain is one of many solutions to consider for that.

This article does not suggest blockchain, and smart contracts will solve all the problems people face worldwide. But it will help build the bridge to that vision of a more just future for everyone. 

In part 2 of this article series, I will talk about one project that aims to build a « trust 3.0 » network.

Are you already involved with a blockchain project in Africa? Which sectors?