Challenges
We all know the common problems people facing in developing countries. Few to say are unemployment, education, sanitation and many others. In few countries like India, Myanmar, and Brazil the technology is helping people to enhance their current economic situations. People are still suffering to get their basic needs such as food, shelter, and sanitation in some group of communities in many countries. In almost all the countries there are a group of people, who wants to do good for underdeveloped communities, but the chances to get succeeded is very less, because of corruption and regulations. Today I will list out, some areas where we can use blockchain technology to address the challenges in developing countries.
1. Eradicating Corruption:
Today, in any developing country the major challenge we are facing is corruption. The monopoly of government organization leads to more dependency on employees who represent those organizations. It’s worthwhile to mention that corruption is significantly more in government entities rather than the private sector. Corruption is more in government divisions like Transportation, Public relations, Deeds and many government leading sectors. We can apply a blockchain-based solution to the majority of the industries like transportation (for issuing Driving License, Vehicle Registration, etc.), Deeds Registration (Maintaining property details in decentralized private blockchain), and identity documents for internal and external affairs like Aadhar & PAN card in India. I am not saying that corruption is going to end, but to the maximum, we can control by using blockchain technology.
2. Banking & Finance
As per World Bank, in India, there are 41% of people who don’t have access to financial solutions. With people’s daily average income of less than $2-3, they cannot afford to open a bank account. Lack of proper identity verification and unreliable credit history of individuals are other reasons for exclusion. It is a fact that people in rural areas have no access to basic banking needs. The other main challenges such as fee, which is involved in every transaction, monthly maintenance charges and the waiting period between transactions. By providing blockchain based banking solution in developing world, banks can generate $120 billion worldwide.
Advantages using Blockchain
- Faster Transactions
- Improved Security
- Digital Currencies
- Reduced Cost
But before developing such solution banks also need to understand that majority of the people in this regions are uneducated and they need to manage their private keys. It will be challenging to migrate these communities from traditional banking to blockchain based banking model.
3. Insurance & Small Scale Industries
Banks will see one’s credit-worthiness and previous credit history before providing any loans to individuals or small industries. Today we live in a world where people cannot trust one another because claims of individuals may not be accurate. Insurance giant’s works as an intermediate among people and charge 20-30% as their fee. Using blockchain, people can build decentralized trust networks and avoid these insurance companies. The Same concept can also be applied to blockchain based lending for creative ideas and social investment. In a decentralized system, using smart contracts, people can pay towards insurance premium and also take loans for their micro ventures. In developing countries, both insurance and micro lending have good scope. There are a lot of companies trying to enter in this space, and we can see real development in the near future.
All images are taken from respective websites as given in source, These are my thoughts on blockchain development in major sectors in developing countries
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Good read.
Blockchain is the future. It won't be implemented anywhere where it's needed just overnight, but it will be implemented slowly and steady I believe.
Overall profits can be huge for all kinds of societies and communities.
Remember, this technology is still at its infancy.
Honestly it can help get rid of government all together. If everything is done on the blockchain everything is transparent. No more lies, no more cheating, and almost everyone with an internet connection is on equal playing field.
Well you could do all those things, but it's only a matter of time before your caught if it's all on the blockchain.
this is so true, theres so many corruptions out there. i was born in vietnam and man does money suck there. think about it, no more judging based on stupid shit like religion an sex but rather work ethic and integrity
I support this,corruption is the biggest problem in developing countries.
The block chain technology would help eradicate this by reducing transaction times.
It is interesting how processing of documents can take weeks or even months.
Processing a passport or driver's license time would be reduced hence also reducing middlemen.
What causes corruption is that data can be manipulated easily,the block chain would help in maintaining data integrity.
Block-chain technology also offers the best security.
Hope governments and individuals see the benefits in block chain technology
Very good points, especially regarding the inertia affecting small enterprise growth caused by governmental monopolies and the corruption endemic in that type of system. A good read and I hope that ways are found to put blockchain technology to use in removing this poverty trap from developing countries. Hell, forget developing countries, the world seems a fine project to me.
I agree with you! we can see real development in the near future...
Hi there, and one more thing currency what if any government convert its currency to blockchain technology because in developing country's currently common men don't know what is market cap of capital, for example When a country lunch his currency he needs paper, machines and some employees after the set of the reserve with market cap and number of printed note price calculate so, for example, country x printed a 100,000 note with a price equal to 1usd each. After that government use all his notes so they print 1,000 more note at that time currency in common man pocket or in his bank account d value or we can say government stole one sent per note, because after 1,000 more note available in market means per note value is 0.99 USD,
in third world countries that common to print new note by the government on every second day and still a small price in every note like 0.000001 used but they do.
but so what if they convert to crypto currency?
because information of every cryptocurrency is open for everyone and there are also market cap so it's hard to still any one coin worth in blockchain.
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STOPHope each and every person on planet earth can beneficial by Blockchain.
But yet we will have to wait for some time ...