Blockchain’s potential extends to poverty alleviation

The technology can help to bypass traditional barriers to women’s empowerment.

When women and girls in Afghanistan were barred from going to school, many turned to online courses to continue their education.

Blockchain, with its public accessibility and pseudonymity, can help them get globally recognized tamper-proof and portable credentials.

It has the potential to transform education by addressing infrastructural and institution-related costs typically faced by less developed and geographically remote communities. But blockchain’s ability to empower women striving to escape poverty goes beyond education. It can improve social inclusion by giving equal opportunities to every individual regardless of background and status. Blockchain technology provides women with financial inclusion and entrepreneurial opportunities to achieve independence and self-sufficiency. It offers small business owners affordable and efficient cross-border payments and can help women access previously inaccessible financing.

In countries that still prohibit women from owning property, women can turn to blockchain or cryptocurrencies to bypass restrictive cultural norms and gain financial access outside the traditional banking system. Women micro-entrepreneurs without assets for security can turn to crypto-financing to fund their business. For example, the Grameen Foundation offered blockchain-enabled microfinance to support women entrepreneurs in the Philippines during COVID-19. Blockchain technology has also been used to help female refugees in humanitarian crises.

Immigration systems can provide unidentifiable and displaced persons with verifiable personal identification on a blockchain-based database. Financial assistance can be deposited in the form of digital currency or cryptocurrency at minimal transaction costs in their accounts to give them access to basic facilities.

Since the emergence of Bitcoin in 2009, blockchain technology and distributed ledger technologies (DLT) have been widely adopted in various sectors. A recent report by accounting firm PricewaterhouseCoopers revealed that blockchain technology has the potential to increase global GDP by $1.76 trillion over the next ten years.

As a revolutionary technology, blockchain has significant potential to empower women in vulnerable and marginalized communities. It can improve their livelihood which then reduces household, community and national poverty.

The two most critical aspects that can help women achieve equality are better access to education and income-generating opportunities. Blockchain technology can be the tipping point for social inclusion and poverty reduction.

(This story has not been edited by Devdiscourse staff and is automatically generated from a syndicated feed.)