Whereas blockchain know-how nonetheless could be thought of to be in its infancy, some areas, significantly Asia, have superior of their blockchain-related developments and integrations.
In the meantime, in Africa, for a area replete with many notably corrupt governments, just a little extra embrace of blockchain know-how might come useful in serving to to unravel points referring to cash laundering, electoral malpractices, and identification administration.
In response to a survey performed by Transparency Worldwide in 35 African international locations 2016-2018, greater than half of all respondents stated that corruption is getting worse of their nation and that their authorities is doing a foul job at tackling corruption.
How can blockchain assist? If it may possibly assist in any respect.
Tackling cash laundering
Cash laundering is probably one of many notable challenges of most African economies. The prevalence of siphoned funds from authorities officers to cyber fraudsters begs the necessity for an entire overhaul of the present anti-money laundering (AML) transaction monitoring course of.
Presumably, blockchain might assist automate the method of AML fraud detection.
The true-time registering of transactions made on the blockchain could be made obtainable in a public ledger for straightforward reference which might make the combat in opposition to cash laundering simpler, clear, and extra result-oriented.
For instance, the South African Reserve Financial institution and main blockchain firm ConsenSys partnered to develop Undertaking Khokha. “As soon as Undertaking Khokha achieved its targets for efficiency, scalability, resilience, confidentiality, and settlement finality, the crew shifted its focus to the sharing of know your buyer (KYC) and anti-money laundering (AML) fee info between banks,” in response to ConsenSys.
Enhancing electoral transparency
Most African international locations follow democracy however nearly all battle with electoral malpractices. Can blockchain be an answer to this?
Whereas this use case continues to be controversial as a consequence of its complexity, significance, and a number of dangers, some international locations are already attempting to implement it, however the outcomes are blended.
In the meantime, throughout presidential elections in Siera Leone in 2018, Agora, a Swiss basis centered on digital options, was reportedly accredited as an unbiased observer by the Nationwide Electoral Fee (NEC) to check its permissioned blockchain know-how throughout elections. Nevertheless, again then, the NEC harassed that it “has not used, and isn’t utilizing #blockchain #know-how in any a part of the electoral course of.”
In both case, as makes an attempt to make use of blockchain in voting are nonetheless being made, it would convey new viable options sooner or later, serving to increase transparency throughout Africa too.
Using blockchain know-how to bolster identification administration can also be a serious potential use case wherein blockchain might assist scale back fraud in African international locations susceptible to identification theft.
With a blockchain managed identification system, each people and establishments may need higher management over their private knowledge and stop identification theft.
For instance, in 2016, blockchain-as-a-service software program firm BanQu, now with places of work within the US and South Africa, tried to create blockchain-based digital “financial identities” for refugees in Kenya. Nevertheless, on the web site of the corporate, there aren’t any different particulars about this challenge and its outcomes.
Non-blockchain challenges stay
And whereas blockchain-powered options are nonetheless being explored, different challenges would possibly forestall them from being applied throughout Africa even when they show to achieve success.
In November 2017, the United Nations Financial Fee for Africa (UNECA), stated that if Africa is to make use of blockchain know-how as an inclusive issue of growth, nonetheless, there are lots of challenges remaining, similar to coverage and regulatory implications, entry to ICT infrastructures, safety and belief features, and vitality consumption.
Let’s hope that each one these blockchain-related and different challenges shall be solved ahead of anticipated, giving Africa a brand new probability to assist its individuals.
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