Why Africa Should Think Blockchain

Whenever blockchain is mentioned, people usually picture cryptocurrencies such as Bitcoin and Ethereum. While it is true that cryptocurrencies run on blockchain tech, the technology itself can do so much more.

The origins of this technology can be traced to a desire to fix flaws in the banking system like high transaction fees, slow payment validation, etc. The resulting developments in blockchain technology can be applied to many different areas.

Africa might lag behind the rest of the world in terms of technology adaptation, but it is certainly a greenfield market with huge untapped potential. African Tech companies can take advantage of this potential by developing applicable blockchain technologies to improve process and efficiency in different business sectors, to position themselves for growth and international competitiveness.

Some of the key areas where blockchain technology can be harnessed include:

• Equities trading.

The system is a perfect fit for equities trading systems as it settles transactions quickly. No waiting time for validation and settlement of completed transactions and instant access to funds.

• Payment processing and money transfers.

Transactions handled over the chain can be promptly settled in seconds, with the system processing 24 hours each day. It can reduce money transfer settlement times including overseas remittances.

By reducing processing time, payable fees, and phishing risks this is a huge opportunity especially given the size of the African population in the diaspora.

• Monitor supply chains.

Businesses can set up private blockchains to expedite supply chains by locating goods in real-time as well as quickly locating inefficiencies within their supply chains.

By removing man and paper, the system is efficient and cost-effective.

• Online voting.

The system is transparent such that the possibility of vote tampering is effectively eliminated. Given that the system is not subject to manipulation, is secure and fast, blockchain technology is definitely to be considered in the electoral process.

• Backup systems.

Cloud systems used for backup are subject to hacking. This technology, therefore, offers a secure and immutable way to keep data safe. It can be used by cloud data centers as a backup source.

• Real estate.

This technology has the potential to revolutionize real estate trading by providing the means to confirm legal ownership in real-time within seconds. The immutable nature of the tech means that scammers who dupe people into buying the same stands and houses, on the basis of a fraudulent agreement of sale, will not be able to do so.

With the levels of fraud in real estate trading in Africa, this could be a game-changer.

• Solar energy smart grids.

The use of solar energy is on the rise in Africa, but the caveat with solar energy is that sometimes you have excess but on other days, not enough. This creates the opportunity for smart grids, where this tech will be used to manage the pool of solar energy such that any excess energy can be channeled into the grid, and when you do not have enough you can simply buy from the grid.

Imagine if communities connect on this solar grid that would create an alternative power source on another level.

These are just highlights of how blockchain can be used to drive improvement in processes and derive efficiencies. All indications show that this technology is set to define the future of doing business.