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Jul 29, 2020
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Poor countries may benefit from blockchain technology in various ways

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When many American investors heard the term ” blockchain “, they immediately thought of cryptocurrency, and for good reason. The impressive new technology provides the necessary support for the decentralization, anonymous tracking, and transactions of global digital currencies. However, as many industries have discovered, blockchain technology has many other uses and applications.

From insurance and real estate to crowdfunding and data management, the potential applications of blockchain technology are numerous, and there may be new ways to adapt this technology to the mainstream business world in the future. However, an important use of blockchain technology may not be in mainstream business: some of the poorest countries in the world may benefit from the integration of blockchain technology in various ways.

The Democratic Republic of the Congo is a Central African country that has suffered from a devastating and protracted war that has killed millions of people and is generally ranked as one of the poorest countries in the world. Now, a report from Bitcoin News highlights a project scheduled to be launched later this year that can help protect children there from forced labor. The project will provide a guarantee for global manufacturers of high-tech devices such as smartphones to ensure that the cobalt used in lithium-ion batteries will not be mined by children. In the Democratic Republic of the Congo, informal mining farms have serious problems, many of which include child labor.

The country has half of the world’s cobalt reserves, which may benefit a weak economy in the coming years, especially as electric vehicles are becoming more popular. Indeed, in 2016, Congo mined 54% of the world’s 123,000 tons of cobalt.

In Venezuela, hyperinflation has triggered a severe shortage of basic necessities and food, and Bitcoin and other cryptocurrencies may help ease the pressure. Given its global use and the relative convenience of cross-border payments and transfers, for many Venezuelan citizens, cryptocurrency has become a viable alternative to the increasingly troublesome local legal tender.

According to the recent census, Haiti has been hit by hurricanes and earthquakes in the past ten years, with a per capita gross national income of only $810, and it will also benefit from the blockchain. The Haitian government suggests that blockchain technology can be used to record and register property transactions, voting, intellectual property, and other aspects of bureaucracy.

For Paul Domjan, head of global research, analysis, and data at investment bank Exotix, emerging countries are the most promising beneficiaries of blockchain technology. He believes that because “Latin America, sub-Saharan Africa, and South Asia’s frontier markets lag far behind [ownership records] in terms of ownership records, and the average performance is less than half of the best-performing economies, so they are powerful. “For the benefit of the blockchain.

Amnesty International researcher Mark Dummett expressed cautious support for the integration of blockchain into efforts to solve these and other problems faced by developing countries. He said: “You must be vigilant against political and economic issues. Technical solutions to the problem, but blockchain may help. We are not against it.”

In addition to the applications listed above, supporters of blockchain believe that it can enhance the distribution of government services in these countries, help provide identity services, and even help enhance freedom of speech and anti-corruption activities. All these ideas are promising on paper, but although many companies and projects are discussing plans and potential applications, so far, the implementation of major projects has not yet taken shape.

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