Why should Africa promote blockchain in an emerging economy?
Several African countries qualify as emerging economies due to their rapid growth in gross domestic product (GDP), increasing per capita income, and rapid increases in debt and equity market liquidity. Such economies are well on their way to developing market economies and should be equipped with appropriate infrastructure to contribute to the transition to standards in the developed world.
Blockchain technology has been around for over a decade and has championed disruptive change in multiple industries. It is clear that blockchain companies such as 3air, which provide blockchain-based internet connectivity using proprietary technology to provide high-speed, reliable and affordable internet, have a place in Africa’s future.
Why does sub-Saharan Africa need blockchain technology?
Several African cities have experienced an increase in population. As people continue to embrace town and city living, most cities have been forced to adapt to high population growth without proper infrastructure. In many developed market economies, broadband internet is available and was laid out in cable form.
Internet cabling requires proper planning and expensive resources. Digging trenches to lay cables is not only cumbersome, but also expensive. Due to the lack of proper cabling, African countries must rely on innovative and realistic options to achieve the desired broadband connectivity.
The 3air blockchain project provides an amazing solution that is significantly more cost-effective than conventional cabling. The proposed ISP solution is not affected by harsh weather conditions that are often experienced in some African countries; works optimally in the same way in all terrains and provides long-distance connectivity that minimizes the need to set up many base stations.
Since blockchain records are immutable, the 3air solution, in partnership with K3, provides a robust telecom infrastructure that can be used to document all clients since many Africans are undocumented. The immutable records can be an essential service delivery tool for the ISP services, while also providing banking services to the unbanked.
The new technology simplifies the introduction of new clients through the “Own your hardware” program. A loyalty system established on the 3air blockchain platform will ensure that tokens are locked for the value corresponding to the hardware value. Clients must pay for tokens or release tokens to own the ISP hardware. The data is stored securely and processed efficiently to ensure smooth service delivery.
Why do the unbanked need blockchain technology?
A significant part of the African population is unbanked. Creating more financial institutions cannot solve this problem. Sub-Saharan Africa, with around 350 million unbanked adults, accounts for 17 percent of the global total. A system that can provide detailed documentation to marginalized areas can benefit from the blockchain.
The successful deployment of internet broadband sharing solutions produces important data from customer interactions, including payment information, credit scores and internet usage. Such information will be sufficient for 3air to extend its services to other sectors, for example banking services to unbanked, by extending financial services with security to users.
Conclusion
Blockchain is a revolutionary technology that can be used in emerging economies in Africa to accelerate development. The deployment and use of blockchain-based internet service provider solutions provides the opportunity for cost-effective, reliable and efficient solutions that can bring Africa’s economies on par with other developed economies and potentially become a frontline in blockchain applications.
