Blockchain And Its Impact On The Developing
Nations The Impact of Blockchain on developing nations
In this video I will take a step back and look at how Blockchain can help developing
countries improve in areas such as democracy , supply chain management, immunization as
a replacement to the local fiat currency. Maybe you If you are interested in Blockchain
and want to how this technology can improve the lives of people living in developing country
then this video is definitely for you. Hopefully with this video you will understand
why I am so passionate about the technology as I believe it will improve many peoples
lives. Since I do not want to waste your time I will
post timestamps to the key parts in the video in the description below.
The main reason why I say blockchain technology can change the world is because it has a huge
potential to improve the economy of developing nations such as India, Pakistan, Bangladesh,
Nigeria and many other countries that are densely populated with population soaring
as high as 2 Billion. Even though the penetration of blockchain
technology in developed countries like the US, Australia, Switzerland and Japan is still
very low it is way more than that of developing countries.
In my opinion, developing nations can benefit from blockchain technology the most compared
to developing nations. let’s get down to the direct impacts of blockchain
technology and cryptocurrency on the developing economies of the world. Elections Elections are a vital element in a democracy.
There have been many cases where the election numbers have been rigged, ballots stolen or
lost by the government, dictator or even manipulated by another country. (russia meddling with
us voting). the best way to secure a transparent and secure
election is to implement blockchain technology in the election process by chosing a verification
process where voters can consume media that has been stamped with a unique cryptographic
identifier. This would prevent fake news Furthermore, the distributed blockchain ledger
can store data in a secure way that allows the vote of each voter to be tokenized and
encoded with his/her biometrical information. This information is then recorded on the blockchain.
By using zero knowledge proof it is possible to know that some data is correct without
knowing what is in the data. blockchain technology can also help the voters
become the auditors to audit his/her own ballot to confirm the total votes. Some of the countries
that have tried blockchain voting are Sierra Leoneand Estonia. A secure and fair election
which has not been manipulated is what many developing countries need. With better leaders,
the country will hopefully benefit on many levels such as less corruption, better economy
and better guidance. Agriculture Many developing nations have a big portion
of their GDP from the agriculture sector. One of the main reasons that farmers in the
developing nations have a hard time is the lack of proper infrastructure for them to
sell their crops to the right buyer. ?What do i mean with infrastructure?
Supply chain management. It is difficult for the buyers and sellers (farmers and middlemen)
to trace where the crops go in the market. You might wonder why that is important. Imagine
farmer bob is a very good farmer. He uses legal pesticides to grow his crop. Farmer
fred uses many different ilegal pesitcides and chemicals to grow his crop a lot faster.
At the moment very often these two types of crop get mixed together and no one knows who
is at fault. The good farmer bob gets the short end of the stick as his crop is not
worth as much. With the help of blockchain technology, the
farmers and buyers get to know the status of the crop from the time of the seed plantation
to the delivering of the crop. However, with the help of Blockchain technology,
the process is simplified in just single distributed ledger, thus saving money to all the stakeholders.
For a developing nation that is heavily dependent on agriculture, the implementation of blockchain
indeed makes a huge impact on their economy. Immunization There are many deadly diseases spreading across
developing nations, it is crucial to keep of the vaccines available in those regions.
According to a report by Aaron S. Wallace, the mean vaccine wastage rate in Nigeria is
around 18 to 35% blockchain technology helps in identifying
who owns what, where and when the vaccine is in the supply chain. All this information
can be tracked in real-time. Vaccines are stored in small containers which
are identified using QR Codes and the tracking is done by an internet-connected device that
helps the user to know the exact location of the vaccine and the temperature. the final step of vaccination is confirmed
by inputting the biometric of patients on the blockchain which gives the most precise
and accurate figure of vaccine coverage as compared to previously used methods.
This helps in further vaccine campaigns market research and statistics.
A country which not only deals with diseases but also with the lack of vaccines due to
poor supply chain management, the implementation of blockchain technology indeed impacts the
health of its economy in a positive way. Alternate Source of Fiat Currency The depreciation of the domestic currencies
against the world’s leading currencies such as USD, EURO and Swiss francs makes the citizens
of developing country worry a lot about the continue loss of value of their local currency.
A sad example is the hyperinflation which is currently happening in Venezuela. Based
on the IMF records, In 2018, the annual inflation rate reached
929,790% and is expected to reach 10,000,000% by the end of 2019. According to the April
2019 World Economic Outlook report, Venezuela’s inflation rate of 10 million is the highest
in the world. The reason for such failures of the domestic
currencies can be attributed to the bad economic and fiscal policies adopted by the very own
government. However, with the help of blockchain-based
cryptocurrency, the people of the developing nations get an alternate way to buy products
and services within their country. Cryptocurrency Remittance payments have increased by a large
percentage. Venezuela has recorded a massive increase
in trading volume on localbitcoins. The value of cryptocurrencies doesn’t depend
on the fiscal and economic policy of the government or for that matter any centralized authority
in the world. One such example is Bitcoin which is vastly
being accepted in various parts of the world as an alternative to fiat currency. These were some of the ways through which
blockchain technology impacts the developing nations.
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