‘Nigerian environment perfect for web3, blockchain technology to thrive’ | The Guardian Nigeria News
Mouloukou Sanoh is the co-founder of Cassava Network, a Web3 platform, committed to driving Web3 adoption in Africa. He was with Mansa Capital, an investment advisory firm that helps African startups raise money. In this interview, he tells TOBI AWODIPE about Web3 adoption, why Nigeria is ready to explore the metaverse and why government regulation is needed to protect the space.
Crypto, metaverse and blockchain technology are new terms in Nigeria but not many people know exactly what they mean and how they work?
Blockchain technology can be considered a second or even third iteration of the Internet; they are decentralized nodes that are immutable and this means they cannot be tampered with. Everything stored on the blockchain will remain there forever as it is built on decentralization, meaning it is a trustless protocol in the sense that there is no central party controlling it. Crypto can be considered the fourth iteration of money, we went from silver/gold to paper cash, then digital currency and now to crypto.
The metaverse can be considered and defined as the virtual realm built on the blockchain, which uses digital currencies such as crypto as means of payment. Everything we do now focuses on educating our customers and audience, which is why on all our social media handles, most of our posts focus on educating users on terms like blockchain, wallets, NFTs; their future potential and how people can benefit from it. We believe that when we educate the general public, it will lead to mass adoption. We have just signed a partnership with Pan-Atlantic University (PAU) and Lagos Business School, together with Emurgo, one of the co-founding entities of the financial blockchain and one of the world’s largest crypto companies with a market capitalization of $12 billion.
In addition to being a co-founder of the Cassava network, I am also an investment manager with the latter. The partnership is centered around blockchain courses, we will also conduct research with the universities’ IT departments and hold boot camps; all in an attempt to further education in the blockchain area. We are also releasing a book, The ABC’s of Blockchain, this quarter, which explains the basics of blockchain and provides examples. It will be co-published with PAU and issued free of charge. Cryptocurrencies and the metaverse live on the blockchain.
What are the immediate and long term benefits of the three for average Nigerians?
Nigeria’s problems are Africa’s problems and they include, among others, inflation, currency devaluation and difficulties in sending money within and across Africa. Africa also has a huge unbanked population; around 397 million people remain unbanked or underbanked. Crypto can help with this. Mobile phone penetration is quite high and this can act as a mobile wallet; they can send and receive money through a crypto wallet as long as there is a SIM card and Internet connection. Think of small farmers in remote villages; he can send and receive digital currencies, get financial history and apply for loans. Cryptos have what is called a stable coin, like the USDTs, which are a digital version of the US dollar.
Anyone trying to hold US dollars to hedge against inflation can buy a stablecoin like a USDT. I can send money from here to that farmer in Kano state and he would get it in seconds compared to the traditional system which takes hours, sometimes even days or weeks. From my corporate account in Hong-Kong, I can’t send money to Nigeria because Nigeria is blacklisted there. These are the barriers that cryptocurrency easily overcomes, helping the unbanked and underbanked easily access financial services, hold US dollars, and send and receive money.
You are building a Web3 platform focused on games and non-fungible tokens, among other things, how do you want to do this?
We have a multi-chain wallet where users can send and receive cryptocurrencies across different blockchains like Binance and Ethereum and other different chains. It also allows them to hold NFTs among other things. We are also building an NFT platform in partnership with Boomplay and working with stars like Burnaboy, Wizkid, Davido and helping them create NFTs that help them stay close to their fans. We also want to work with digital and physical artists and create a reward platform where users are rewarded for using the various platforms. For example, you are rewarded for listening to a song on Boomplay or by playing a game, sending money and so on. We also partnered with global Web3 games, helping them organize activities across Africa. We focus on Web2 verticals because it is easy to move from that to Web3 and we look to be the bridge that connects users.
Are there concerns that Web3 might not gain rapid adoption here given the level of internet literacy in this region?
Not at all, web3 is made for Africa and other emerging markets. Nigeria has a large youth population with a large number who grew up with the Internet; this is the perfect environment for web3 to thrive. We must continue to educate users and ensure that our products continue to improve their lives, make them more efficient and provide them with opportunities to earn money. I also believe that when the government sees the positive impact it has on the people, they will come to adopt it fully. It is a long game, but we are committed to Web3 and Africa.
Is the Nigerian ecosystem ready to explore the metaverse as well as blockchain technology since crypto is still not legally recognized?
The government cannot stop crypto completely; Nigeria, South Africa and Kenya are among the world’s highest holders of cryptocurrencies per capita, and Africa has the world’s highest Peer-to-Peer (P2P) transaction rate for cryptos, so I’m not worried. Last year, the Nigerian government signed an agreement with Binance to create a crypto city. I believe that regulation is the way to go because there are many scammers out there and these scams are flourishing due to no education about what crypto is and it is perceived as get-rich-quick scheme and also regulation does not allow companies to be transparent and open; help users make informed decisions. The government should adopt regulations that promote innovation and crack down on fraudsters.
How do you intend to deal with the issue of trust, which is largely eroded in the ecosystem?
I will answer this from the Cassava Network and then the investor perspective. From the perspective of the former, we are not a financial risk company. We do not facilitate payment, we help users earn rewards, expand their means of income, help them discover and access other Web3 companies and services. From the investor’s perspective, it is about understanding the user’s pain points and solving the same. There are few very successful crypto companies we have invested in, like Bitmama, which was founded by a woman, Ruth Iselema.
It’s all about understanding pain points, solving them and educating users. Banks are centralized entities while most crypto companies are decentralized, no one can take the money in your online wallet. Crypto does not close, it lasts 24 hours and you have full control over your money at all times. Compared to traditional banks, the fees are very small, depending on the blockchain used. Money held in crypto wallets is very safe and even if the stock market goes down, your money is still safe. The main difference between crypto and the current financial system is the reach and scope of the former, which is larger.
What innovation is Cassava Network bringing out this year?
We are launching the second version of our products where users can earn rewards by completing tasks. We also signed a partnership with Grammy award winning producer, LeriQ’s NFT platform, African Valuables Collective. We are also doing a music camp next month inviting top Nigerian and South African artists to make music and sell the album as a NFT; with additional benefits such as the album, merchandise, early warning and discounts. We also want to work with big festivals like Afrochella, Afronation and help them sell concert tickets like NFTs. We will work with our partners, launch marketing campaigns and hold events.
