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Thursday, January 26, 2023

Will Africa be able to get profit from Bitcoin (BTC) and blockchain?

Located in West Africa, Grandma Ginger Wine is a start-up through which we can understand the harsh realities experienced by African economic actors. And we all know these need a boost. Starting with the integration of blockchain into their ecosystem.

The different challenges of blockchain

One of the major challenges of blockchain lies in its ability to generate more financial options for a large number of entrepreneurs and financial institutions. Thanks to it, obstacles that were once insurmountable are no longer so. A windfall that investors will no longer want to let slip.

As a reminder, the Blockchain appeared from 2015, a period during which the public limited it to a simple medium promoting bitcoin (BTC). However, in 2016, this technology was becoming more and more pleasant in the eyes of nearly 70 financial institutions. To the point of creating a dynamic within certain internal Innovation departments on PoCs (proofs of concept). From this discovery, the blockchain machine got back on track. (Bitcoin is worth more than Facebook)

Its mode of operation can be summed up as follows. When an individual wishes to carry out a transaction (currencies, contracts, various files, etc.), this information is sent to a P2P network supported by “node” computers. Which use known algorithms to validate the transaction itself and the status of the author. After that begins the constitution of data block in the register for aggregation with other transactions. Note that no activity can alter or remove this newly created block.

Suddenly, the blockchain has gained in popularity. This very high level of security, this power to reduce the number of errors, this possibility of reducing costs and complexity… easily attract financial institutions. Legions are those who find in it a better utility as a payment or fund transfer infrastructure or a digital identity management medium.

The blockchain therefore promises bankers as entrepreneurs more economic, political and social power. At the same time, it sets up a transparent and reliable working environment where trust becomes a key word. All this without mentioning the generation of value with crypto currencies caused by the blockchain. (How Bitcoin would save 30% of its GDP in Tonga)

The best students of the moment will be followed by Africa

Having understood the strengths of blockchain very early on, the West has made it its hobbyhorse. This is particularly the case of the USA. The United States, land of democracy, has chosen a saving path for its people: the enhancement of merit to the detriment of the right of birth. Today, almost everything that moves in Uncle Sam’s country revolves around personal effort. And this is where the Blockchain comes into play, a piece that will complete the American puzzle.

Europeans also see it as a strong ally. It is not uncommon, indeed, to find a European government praising blockchain. Apart from a few fanatics of “hyper-centralization”, the Old Continent has extended its arm to this technological alternative.

The equalization system it represents will certainly benefit the most vulnerable societies. Thus, Africa will have an interest in expanding the level of blockchain adoption across its entire territory. The latter being at the bedside of African companies, regardless of their size. (Revelations on Tether (USDT), Celsius threatened?)

The case of a drink in West Africa highlights the impact of this blockchain-business shock duo. This is Grandma’s ginger wine. Each stage in the production of this beverage (production, bottling, marketing, shipping, etc.) can be considered as a source of added value. And at the same time, every activity remains under the yoke of vulnerability.

The case of Grandma Ginger Wine demonstrates the reality experienced by a large number of African companies. If a large part of their products are on the shelves of shops, it is because there is a team of superhumans behind. For lack of suitable financial products and services, these start-ups turn into the red in no time while their success is the result of a real obstacle course. Here, blockchain technology thus makes it possible to bring trust, an element that is often missing between economic actors on the African continent. On the other hand, Bitcoin (BTC) provides an innovative way to settle payments for a population that is still mostly unbanked.

America like Europe, and even Africa, have high expectations of blockchain. Its advantages are well established. The transparent and trustworthy infrastructure it makes will challenge any indifferent position.

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