Blockchain Has Great Potential In The African Market

Technology blog site Venturebeat recently wrote that due to many regulatory policies and increased development costs, the blockchain has gained fertile ground and more opportunities in the African continent. Therefore, the article believes that The blockchain will show great potential for growth in the African market. The following is the main content of the Venturebeat website article.

In early March, a number of celebrities in the global blockchain sector, as well as representatives from the financial, judicial and global technology industries, gathered to discuss the widespread dissemination of blockchain issues. However, the meeting was not held in the Financial Technology Center in London, nor in San Francisco, the birthplace of start-ups, but in Johannesburg, South Africa.

Most African countries are still considered to be developing countries and have been hindered by development for many reasons. However, the blockchain ecosystem that has emerged in many places has shown signs of development on the African continent and may have a huge impact on the economy and society.

Although the African technology ecosystem may not receive the attention it deserves, the region is home to a large number of emerging blockchains and cryptocurrency groups. People in the local blockchain business in Africa are using blockchain technology to deal with social, economic and political affairs, and use blockchain as a springboard to enter the global market.

Emerging blockchain center

Compared with the cryptocurrency centers in Central and Eastern Europe and Switzerland, the blockchain business in Africa is still in the early stages of development, but the blockchain business in countries such as Kenya, South Africa, Nigeria and Sudan has shown steady growth.

Headquartered in Nairobi, Kenya, blockchain accelerator company BitHub Africa, which serves local start-ups, was founded in December 2015. BitHub Africa advises organizations that deploy blockchain solutions across markets such as Africa and the Middle East, and also helps local blockchain start-ups prepare for related work and complete basic operations. An important job of BitHub Africa is to incubate microfinance startups. In addition, the company is working with local regulators to promote Kenya’s blockchain-related technology policies and actively promote regulatory policies that are conducive to ICO and cryptocurrencies.

In South Africa, the Blockchain Academy in Cape Town provides cryptocurrency and blockchain technology-related training services to local start-ups and entrepreneurs, as well as how to fully implement blockchain technology. Incorporate into matters related to the business model of the company to provide consulting services to local businesses. In addition, the institute provides training services at the AlphaCode Club in Johannesburg.

The Blockchain Institute also works closely with local financial institutions and representatives of major banks, including Barclays African Bank, Standard Bank and the Swiss Central Bank, all of which have worked at the Blockchain Institute. Received relevant training. In fact, since the South African Central Bank, the South African Reserve Bank (SARB), based on the enterprise-level blockchain project Quorum and the Ethereine startup ConsenSys launched a new FinTech program, the blockchain has been in the financial sector in South Africa. Unusually popular.

Other relatively small blockchain organizations have emerged in Sudan. In fact, in the Sudan region, since 2015, cryptocurrency-related conferences and events have emerged, and the scale has become larger and the participating institutions have become more active, mainly due to the social media organizations. The role played in this process. A large number of blockchain-related companies have begun to take root in Sudan, including blockchain development company Codexi, block mining technology-based gold mining company SG Mining, etc. SG Mining uses gold assets to support cryptocurrency.

The first Nigeria Blockchain Alliance Conference was held in November 2017 in Lagos, Nigeria’s largest port city. According to the Nigerian Bitcoin exchange, Africa.io, in the past two years, the country’s blockchain business has flourished, a large number of emerging blockchain start-ups have emerged, and the country has also launched The CDIN (Cryptography Development) program is designed to educate and transport to the Nigerian community about the potential benefits of blockchain and cryptocurrency. SureRemit, a Nigerian blockchain start-up, has just raised the largest ICO to date, raising $8 million for its non-cash remittance platform.

solve the real problem

So far, the blockchain has been gradually popularized on the African continent, but the latest use of blockchain technology is dealing with real social, economic and political issues that have a significant impact on hundreds of millions of people, such as anti-corruption and control. Inflation, etc.

The recent presidential election in Sierra Leone has used blockchain technology, which shows that blockchain technology has also begun to penetrate into West Africa.

Application in combating inflation

Cryptographic currencies are playing a special role in the economic arena. In the economic sector, cross-border foreign exchange cash is often subject to many restrictions, and the number of transactions conducted by the public using mainstream banks is also very small, especially in the face of inflation in the local economy. In Zimbabwe, inflation has been extremely strong in recent years, as local people have managed to protect their deposits from devaluation, so bitcoin prices have been soaring everywhere.

Inflation and other problems have led to a lack of public trust in government, central banks and financial institutions. However, as more and more smartphone users in Africa have doubled in the past two years, these high-tech users are now able to download cryptocurrency wallets to keep their funds safer. Smartphone-based financial transactions are not new in countries such as Kenya. In fact, Kenya has become one of the leading countries in the global mobile technology-based P2P lending business.

Today, many African countries tend to use “advanced” technologies, such as the promotion of mobile Internet and the continuous development of mobile technology-based P2P lending business. Some experts in the industry said that the lack of a traditional system may precisely promote the penetration of emerging technologies (such as blockchain) into the market more quickly and smoothly.

Mining cryptocurrencies will bring new opportunities to the African continent and the world

Where government, banks, and regulators rarely intervene, cryptocurrency transactions tend to become more common. In a recent article published on the Bloomberg website, Kenyan bitcoin mining and trading agency Eugene Mutai believes that “the African continent will bring more opportunities to the global bitcoin market.”

Many African bitcoin mining agencies like Mutai are using locally produced computer equipment to dig bitcoins. Although these devices may be difficult to manufacture, and the corresponding costs are high, and they consume a lot of power, they bring a lot of “miners” who can afford the necessary equipment costs and electricity bills. Income-generating resources.

In Egypt, Bitcoin property rights have been regulated by the government (the Egyptian Central Bank refused to accept digital currency), so a secret “mining person” was created. Although “mining” is not a formal illegal activity, miners are often secretly trading cryptocurrencies, and they are still very worried that they will be charged more for trading illegal foreign currency. According to Africa.io, larger cities in Egypt, such as Cairo, have now become the home of multiple secret bitcoin “mines”. Mine miners also exchange mining-related skills, advice and related information through social media and text messages.

Although computer accessories and graphics chips required for “mining” in African countries are more difficult to obtain than in European countries, one of the advantages of African “miners” is that electricity prices are relatively low.

At the same time, the African solar business is booming, and many large solar power plants have been established in many countries in Africa, such as Morocco, Burkina Faso, South Africa, Uganda and Kenya. Some of these countries have the largest solar power plants in the world, generating a lot of energy. In this regard, some experts believe that with the emergence of solar energy resources, Bitcoin “mining” business in Africa may be extremely profitable.

It is essential that developing countries invest large amounts of time and resources in developing opportunities for the blockchain in the economic arena. In addition, as the review of cryptocurrencies and related start-ups in the United States and elsewhere continues to increase, African countries have ushered in more opportunities in the blockchain

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