Digital identity for Africa: Future technology conquers emerging continent

Digital identity for Africa: Future technology conquers emerging continent

Since the successful run of Bitcoin and other currencies, crypto and blockchain technology have been the talk of the town. But reducing them to Bitcoin falls short.

In the shadow of Bitcoin, more technically mature cryptocurrencies have developed whose revolutionary potential is now becoming visible.

The developers of one of the most significant so-called altcoins, Cardano, have now joined Ethiopia’s education minister in announcing the world’s largest practical application of blockchain technology:

In Ethiopia, five million final-year students and all undergraduates will be provided with digital identity credentials.

Their IDs will be stored in a decentralized manner on the Cardano blockchain, documenting grades and degrees.

Subsequently, the digital ID will also securely and immutably store land ownership, credit scores, and voter registration.

Cryptocurrencies Are Revolutionizing the Financial Market

It is hard to argue that modern civilization is dominated by modern technologies, although the degree of their popularization varies from region to region.

It seems that Africa lags behind in technological innovations, but many forex broker experts see it as having the greatest potential for the development of the digital financial market.

The financial services market is moving with the times. The idea originated in 2009 by Satoshi Nakamoto Bitcoin was based on the assumption that fiat currency is full of flaws.

The solution to this problem was to be a cryptocurrency based on blockchain. In this way, the payment system was created not only secure and fast, but also completely anonymous – each transaction takes place only between one and the other party (peer-to-peer), and also this solution removes all geographical restrictions.

The cryptocurrency market has become such a significant sector that many governments around the world are interested in it. Everyone can try his investing skills on the cryptocurrency market with exness mt5.

Africa Will Be the New Center of the Digital Financial Market

Blockchain technology has great potential, which does not mean that it is free from criticism. It is often pointed out that it is conducive to money laundering or financing terrorism, for example.

Nevertheless, it turns out that it can bring many benefits to the poorest countries, including African countries.

Increasingly and willingly, they have recently been testing blockchain-based platforms, giving them better opportunities to introduce different types of innovations.

Currently, the most interest in cryptocurrencies is shown by Kenya, while one of the few African countries that are still skeptical of digital money is Zimbabwe.

The most popular factor in the spread of blockchain technology in Africa is the fact that the black labor market rules this continent, where there is no official governing body.

Blockchain-based systems enable the creation of new jobs for entrepreneurs using cryptocurrencies.

One cannot forget that thanks to blockchain, residents of the continent have the opportunity to open their own bank accounts. On top of that, cryptocurrencies facilitate online transactions for Africans and allow them to conclude contracts loans in Bitcoins.

What Differs African Countries from the Rest of the World

In the Western world, our identity – and thus access to public and private services – is recorded in our passport, e-card, or credit card. In the developing world, however, we are lucky to have a birth certificate.

For this reason, Cardano is not rolling out its practical applications in technically saturated countries, but where the benefits and thus the impact of the innovation are greatest.

But there are other reasons why Ethiopia in particular is acting as a pioneer country: Prime Minister Abiy Ahmed has studied cryptography and declared digitization a central goal in the state’s development plan.

The population is young and ready for innovation, as evidenced by the proliferation of mobile money in East Africa.

The Impact That Has Cardano

For Cardano founder Charles Hoskinson, this is just the beginning. Despite being only 34 years old, the mathematics graduate is a veteran of the crypto scene, co-founded the second-largest cryptocurrency Ethereum and is convinced that blockchain technology is as disruptive as the Internet and smartphones once were.

The areas of application are large: the global remittances of the diaspora to their families totaling around 415 billion dollars per year are to be made via cryptocurrencies without any charges.

Loans are to be lent “peer to peer” via decentralized, blockchain-based applications with low-interest rates.

Considering that today remittances, which are mostly made with small amounts under 200 dollars, incur 5% to 10% fees and bank loans are inaccessible or unaffordable for the majority of Africa’s population, one can imagine the potential of blockchain applications in this future continent.

But this requires successful use cases, scalability, and network effects. The pioneering project in Ethiopia is expected to deliver all of these.

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Author: admin