Blockchain for Development: New platforms boost growth in Africa
A lot has been said about the potential of Blockchain. Bitcoin kick-started the Blockchain revolution, showing its potential to change entire industries thanks to its distributed ledger feature. Blockchain is revolutionary because it could shake up the current establishment, overthrowing the traditional powers for good.
This is particularly important in emerging markets, in which Blockchain could help enable significant economic growth and empowerment of the societies concerned. The potential is huge: the extent of which most people don’t realise. Recent announcements of crypto platforms committing to spur economic growth and transparency indicate that Blockchain will indeed be a game-changer for developing economies.
Apart from using Blockchain to create an efficient consumer chain for farmers developers are now applying Blockchain to improve other agri-tech businesses in Africa.
Recently, Cardano partnered with the Ethiopian government to employ local developers to apply Blockchain technology to Ethiopia’s agri-tech sector. The agreement states that participants in the project would be able to use Blockchain to track the coffee supply chain, as well as recording land registry processes.
Cardano’s co-founder Charles Hoskinson said that the purpose of introducing Blockchain to these communities is to have a long term positive impact. For this reason, education is at the core of the project, with plans to train local developers in Cardano Blockchain, so they could continue working on it independently.
According to Crypto Currency News, Hoskinson hopes that Blockchain will address several land registry problems in countries like Rwanda, Kenya and Ghana, where landowners are at risk of having to leave their own properties because of a lack of adequate record keeping.
Property registries based on blockchain systems that identify the land in question via GPS coordinates would mean land ownership processes could be verified and transferred efficiently and at a low cost.
The Cardano announcement came shortly after cryptocurrency exchange Binance entered a partnership with Uganda-based Crypto Savannah to spur economic development in the country.
Launched only in September last year, Cardano (ADA) is one of the most promising altcoins and has already conquered a place among the top 10 crypto coins by market cap. The first altcoin to be developed by a team of academics and scientists, including Charles Hoskinson — who co-founded Ethereum — Cardano is no ordinary cryptocurrency.
Cardano was developed as a community where every ADA holder has the right to suggest changes. When a holder makes a suggestion, other members of the network will vote on it and if the proposal receives an acceptable number of upvotes, the development team will implement it accordingly.
On top of that, Cardano is a decentralised public blockchain and cryptocurrency project, and is fully open-source. Cardano is developing a Proof-of-Stake system, instead of the so far most common Proof-of-Work approach.
The Proof of Work process, used in mining Bitcoin, consumes lots of energy — as much as the energy of countries like Denmark — as well as being lengthy and heavy to for the network to process.
Proof-of-Stake systems are more energy efficient, as the principle is that the more coins a person holds, the more transactions they can validate or mine, which means that mining power increases as the coin balance increases. Proof of Stake was introduced by Vitalik Buterin, creator of Ethereum, and is growing as a concept in crypto. Apart from speeding up transaction time and minimising energy use, Proof-of-Stake also ensures that only legitimate transfers are validated and completed.