What is blockchain
Blockchain technology is a digital ledger in which records of transactions are recorded chronologically and publicly. It is the most popular application of distributed ledger technology (DLT). The blockchain has a potential to revolutionise the financial system, especially in Africa.
How Does it work
The blockchain is a distributed database that maintains a continuously growing list of data records that are secured from tampering and revision. This makes it an excellent tool for recording transactions between two parties efficiently and in a verifiable and permanent way. Blockchain technology can be used to protect intellectual property, provide proof-of-existence for digital content, track and authenticate ownership of luxury goods such as diamonds or artworks, as well as simplify supply chains by providing transparency throughout the entire process.
There are some African countries that have taken advantage of this new technology by using blockchain to create their own cryptocurrency.
Blockchain in Africa – Kenya
In Kenya, there are now multiple mobile money networks that use blockchain and bitcoin to transfer money across borders at a very low cost, and without any central authority controlling the system.
Blockchain technology is being used in Kenya as an alternative to traditional money transfer networks like Western Union or MoneyGram. A Kenyan startup called BitPesa uses Bitcoin’s blockchain technology to enable payments across borders with lower fees and faster processing times than traditional systems can offer.
Mobile money networks in Kenya are using blockchain technology as well It allows them to process transactions more quickly and cheaply than they could before.
Blockchain in Africa – Nigeria
Nigeria has a population of more than 190 million people and the use of cryptocurrency in Nigeria is on the rise. Bitcoin, for example, has been used for transactions worth billions of dollars.
The advantages of cryptocurrency in Nigeria are that it is decentralized, easy to use and it does not require any government regulation.
The potential for blockchain to improve Africa’s economy is huge because it can make transactions cheaper and faster, especially across borders. It will also provide financial transparency for companies and governments.
Blockchain in Africa is a blessing