You have likely heard of blockchain, the technology that runs cryptocurrencies like Bitcoin. But did you know that it is being adopted in no time across emerging markets? From supply chain tracking in China to land rights management in Ghana, blockchain is empowering developing nations in ways you may not expect. Strap in as we explore how this groundbreaking tech is improving governance, banking, agriculture, and more across the globe. You’ll discover how countries with less advanced infrastructure are leapfrogging directly to blockchain systems – and the vast potential for future growth. We’ll also look at risks like scalability and examine what lies ahead.
Blockchain Adoption in Developing Nations
Developing countries are especially well placed to benefit from this technology. States with a weak economy and banking sector understand the need of a secure and decentralized system for transactions and record keeping.
In that some developing nations, have either embraced cryptocurrency as their national currency or tested pilot schemes for blockchain-powered payment systems. In 2018, Venezuela launched Petro, a crypto-currency used to bypass US sanctions and inflation. Blockchain is also being used by Africa and Middle East based companies to reduce remittance costs through citizens who work abroad.
Land registry and ownership
It can make land ownership and transactions more transparent and secure. Sweden, Georgia, Brazil and others are testing blockchain-based property registries. Farmers can prove ownership of agricultural land, allowing them to get loans to invest in their farms.
Digital identity
Blockchain-based digital IDs give individuals control over their personal data. ID2020, backed by the UN, aims to provide digital IDs for the billion-plus people worldwide with no official identification. Bangladesh, Malta and South Korea have launched or plan to launch blockchain-based digital ID systems. Digital IDs are crucial for healthcare, banking access, voting and more.
Supply chain management
Blockchain provides an immutable record of the origins and journey of goods. Developing nations with agriculture- and commodity-based economies can benefit greatly from supply chain solutions. Provenance, a supply chain startup, helped Indonesian tuna fisheries track and stop illegal fishing practices. Everledger uses blockchain to track the origin of diamonds to ensure they are not conflict diamonds.
Goods’ origins and destinations are permanently recorded using blockchain. Supply chain solutions can be very helpful to developing nations whose economies depend on agriculture and commodities. Provenance, a supply chain start-up, worked with Indonesian tuna fisheries to trace illegal fishing activities and stop them. Everledger employs blockchain technology in tracking the provenance of diamonds so as to ensure that they don’t come from conflict zones.
Blockchain’s decentralized and transparent nature provides opportunities for more secure and efficient systems. With the support of private companies and nonprofits, cryptocurrency emerging markets are poised to continue advancing blockchain adoption in innovative ways.
Case Studies: Blockchain Implementation in Emerging Markets
Dubai’s Blockchain Strategy
Dubai aims at becoming an international hub for blockchain. The Dubai Blockchain Strategy looks forward to instituting distributed ledger technology across various government sectors by 2020. The strategy is based on three key pillars; government efficiency, industry creation and international leadership.
The Smart Dubai Office
They introduced the Dubai Blockchain Platform for use by governmental agencies and private companies to create solutions. In this platform, there are several blockchain networks and solutions such as a unified business registry platform.
Coming with public and private sector members, Dubai created the Global Blockchain Council to explore the opportunities borne of the technology. Proposing policies and pilots projects like a blockchain-based energy trading platform and shipping & logistics platform are some of its jobs.
Thailand’s Regulatory Sandbox
Thailand established a regulatory sandbox for blockchain projects. This is where companies can experiment with innovative blockchain solutions under more lenient regulations within a controlled environment before applying to run them on a commercial basis.
The central bank of Thailand — Bank of Thailand — has opened up a sandbox that allows blockchain-based payment systems, remittances, and digital currency projects to be tested out. The approved ones operate tests for two years maximum. And 2019 saw the start of first round of testing.
The sandbox aims to understand the benefits and risks of distributed ledgers in finance, gather data to shape regulation and encourage innovation. Regulation is considered essential en route toward becoming a major player on the global stage in the DLT industry by Thailand’s authorities. Finally, it lets authorities adapt policy quickly to changes in tech or business models.
Overall, Dubai and Thailand demonstrate how emerging markets are enabling blockchain-based innovation through government-led strategies, cooperation between public and private sectors, and regulatory sandboxes. Their proactive approach positions them as leaders in adopting this transformative technology.
The Future of Blockchain in Emerging Economies
Many developing countries struggle with issues like fraud, lack of transparency, and limited access to banking—all of which blockchain aims to address.
Increased Financial Inclusion
People who are not served by traditional banks can be reached through digital currencies and payment systems built on blockchain. BitPesa is one such service in Kenya, Uganda, Tanzania and other countries. Venezuela is a country with hyperinflation issues but Bitcoin popularity is soaring because it does not depend on the government’s fiat currency.
Reduced Fraud
Many developing economies are grappling with extensive corruption issues but blockchain can help control this disaster. India has been looking at how to use the technology to monitor land titles and educational certificates frauds. Moscow City Hall has begun testing its own system for municipal voting based on a distributed ledger.
Enhanced Supply Chain Management
Through this technology, agricultural communities can track goods back to their sources so as to avoid unfair trade practices in form of low pricing or poor working conditions. For example, Provenance uses blockchain to trace Indonesian seafood, Filipino coconut oil and Sri Lankan gemstones.
Conclusion
So in the end, it’s clear blockchain is making major inroads across emerging markets. From greater financial access to secure voting, the possibilities seem endless. While there’s still a long road ahead, the signs are promising. One thing’s for sure – you’ll want to keep an eye on how blockchain continues to spread and make a difference worldwide. Who knows, someday you may find yourself using blockchain tech in your everyday life. For now, stay tuned as this breakthrough innovation brings positive change in unexpected ways.
