The concept of blockchain is often associated with some degree of confusion. There have been so many questions regarding this same concept, and In my discussions with people in Nigeria on the subject, some interesting questions that include the following often come up :
“What does blockchain mean?”, “How is blockchain different from Bitcoin?” “How can blockchain be used in my life?”,
And this shows that we still have a long way to go, and some hard work needs to be done in training our people on what Blockchain technology is and how it can change Nigeria.
In this article, I will be enlightening us on the topic of Blockchain technology in Nigeria.
What is Blockchain?
Blockchain technology is a type of database that stores information or data in a structured and decentralized way so that all stored data can’t be altered.
Defining a Blockchain without stating that any information stored on the Blockchain can’t be altered isn’t complete because that’s the main awesomeness and uniqueness of Blockchain.
Blockchain is more like keeping data on a computer for record purposes, but it’s more complex than database technology. People tend to mix them up, but there is a difference between the two concepts.
Blockchain, like its name implies, stores its data into chunks (blocks) that are strung together. This data stored inherently makes an irreversible timeline of data when implemented in a decentralized nature.
When a block is filled, it is set in stone and becomes a part of this timeline. Each block in the chain is given an exact timestamp when added.
The main purpose of blockchain is to allow digital information to be recorded and distributed but not edited. In this way, a blockchain is a foundation for immutable ledgers or records of transactions that cannot be altered, deleted, or destroyed.
Blockchain is also known as distributed ledger technology (DLT).
It also means that all transaction history ever made since the establishment of cryptocurrency, which Blockchain is part of its foundation, is heavily stored on the blockchain and can never be altered by anyone.
But on the other hand, A database is the organized collection of structured accumulated information, or data, typically stored electronically in a computer system. The data can then be easily accessed, managed, modified, updated, controlled, and organized for any reason.
This point clarifies the difference between database and Blockchain technology.
When talking about Blockchain technology in Nigeria, some think we are mainly talking about cryptocurrency, which isn’t true. Cryptocurrency is one of the instances where Blockchain technology has been used, and even till now, it’s still serving its purpose.
Cryptocurrency is one application of blockchain – it allows the transfer of value via transactions leveraging blockchain technology. Examples of cryptocurrencies include Bitcoin, Ethereum, Litecoin, etc.”
What can Blockchain technology do in Nigeria?
This is one of the importance we should ask ourselves, and as far as we know, there are many advantages we can get from implementing Blockchain technology in Nigeria.
According to research, we were able to know that Blockchain technology can improve the country’s economy and potentially contribute about $29 billion to the Nigerian economy by 2030.
Where can Blockchain technology help Nigeria?
Since Blockchain technology is mainly used to store information to avoid any form of alterations, then we should know that it can be used in almost every area in Nigeria.
1. Banking sector
Nigerian banking sectors are known for their incompetence in managing data and information. That has rendered most citizens’ accounts vulnerable because they can be penetrated at any time. Still, if we can implement the usage of Blockchain technology in Nigeria, all information will be safe and sound.
2. Education sector
Blockchain technology can also be implemented in the education sector. Nigeria’s education sector is as worse as every other sector due to bad data collection and keeping but with the usage of Blockchain technology, we can admit that all information of students will be safe, and this will also reduce the rate of malpractices and corruption in the education sector.
3. Political sector
This is one of the sectors we can improve using Blockchain technology. During the cause of my research, I realized that Blockchain technology could also be used in storing election data and information. I don’t know why we haven’t explored this great opportunity because it seems what we need right now.
Considering the general lack of trust in business transactions conducted in Nigeria by our leaders and everyone, it became clear that instilling confidence is a fundamental area of impact through which blockchain technology could be instrumental. Other potential impact areas for blockchain technology are Identity and Credentials Management and Contracts and Dispute Resolution.
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How to implement Blockchain technology in Nigeria
Now that we know what Blockchain is, what it can do, and where it can help us, the next step is implementing this concept to achieve all the benefits.
To achieve this, it will make collaboration between all sectors and those in power, including the regulators.
The most important of these groups of people we are talking about, as you would imagine, are the Regulators as they have the final say on the innovations and technology that are developed and deployed within the country.
Even though Currently, there are no regulatory policies against the implementation of blockchain use cases generally, however, a policy released by the Central Bank of Nigeria (CBN) seems to have killed the cryptocurrency space in Nigeria – affecting one of the major use cases of blockchain technology that we know about for now.
On February 5th, 2021, the Central Bank of Nigeria released a policy that stated that all banks are prohibited from dealing in cryptocurrencies or accommodating payments for cryptocurrency exchanges. Central Bank of Nigeria also mandated that deposit money banks, non-bank financial institutions, and other financial institutions identify persons transacting in or operating cryptocurrency exchanges and ensure their accounts are closed, which means there’s a war against crypto.
This policy from the Central Bank of Nigeria has negatively impacted the innovation landscape in Nigeria because all fintech cryptocurrency exchanges are forced to leave Nigeria and explore opportunities in other, more enabling, and accommodating environments such as Ghana, making it a red area for any fintech company.
To use and achieve the potential of blockchain in Nigeria, regulators must take a collaborative stance and work with industry players (and other key, important members) to check out some strategic initiatives around this emerging technology.
Some of these advantages we can get from implementing Blockchain technology in Nigeria includes;
- The issue of a Central Bank Digital Currency.
- Develop an advanced cybersecurity framework to attack money laundering/terrorist financing risks.
- The launch of Blockchain-as-a-Service (BaaS) platforms to enable interoperability among service providers.
But If the necessary steps are not taken to implement the benefits of blockchain, we are on the verge of being left behind other nations who are taking various risk-based approaches to regulate blockchain while supporting innovators in their efforts to explore novel use cases
Advantages of Blockchain technology in Nigeria
Improves trust
Trust is one of the problems blockchain would erase, and this is because everyone doesn’t trust each other. However, with the blockchain’s transparency, trust will be built. All information will be on the Blockchain to be accessed by anybody and not be altered by anyone.
Improve technology
Even if this Blockchain isn’t adding much value to the country, other countries see it as a norm that shows how developed their country is; being Africa’s largest economy, Nigeria should try and do so too. Anyways, it helps in the improvement of our technology.
Helps in cubbing crimes and terrorism
One of the main challenges Nigeria is facing right now is terrorism. It’s quite strange that even though we have been trying so hard to curb this, the terrorist still increases in number because someone somewhere is funding them while we aren’t able to get the person or the means they use in getting ammunition. With Blockchain technology, we can see every bit of transaction from anybody.
Increase accountability and transparency
Nigerian leaders are known for their greediness, extortion, and embezzlement, but we never had the necessary proof to do anything about it because the data are easily changed and altered. Most of them will never allow Blockchain be established in Nigeria because they know there won’t be any secrecy in their income as everything will be available for everyone to view.
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Improve the economy of the country.
There isn’t much information about this because it was only established in research that it can, but we haven’t tried it anywhere to know if it will work or not.
Frequently asked questions and Answers
How safe is Blockchain technology?
Blockchain technology achieves decentralized security and trust in several ways. To begin with, new blocks are always stored linearly and chronologically. They are always added to the “end” of the blockchain. After a block has been added to the end of the blockchain, it is extremely difficult to go back and alter the contents of the block unless a majority of the network has reached a consensus to do so, which is impossible.
Can someone personal build a Blockchain
Yes, you can build a Blockchain technology for your purpose, but the cost for such is always higher and if you were able to pull this up, consider yourself a genius.
Conclusion
From what we know about Blockchain technology, it can be the only solution to the endless nosediving economy of the country, the untraceable transaction between terrorist and their sponsors, the election malpractices, and Indecency in the government sector. However, some in the place of authority will never accept this concept, but we shouldn’t stop personally moving. If the government doesn’t use it to make the country better, we can also use it for personal gain.
I believe blockchain technology is here to stay and can change how we deal in multiple sectors –from financial services to supply chain/trade and healthcare.
The ability of blockchain in Nigeria, especially to improve the financial situation, is quite important, but we must learn more about this concept and also collaborate to achieve our goal. If we refuse to move with this train, we will be stuck behind while all other countries are far above us.