Kobocoin is a decentralised peer-to-peer digital currency and micro payment system. It was created by Felix Onyemechi Ugoji, a Nigerian entrepreneur and developer based in the UK.
The digital currency is designed to run a proof of stake (POS) consensus mechanism. That means that users who stake their coins to verify transactions on the Kobocoin blockchain using a funded kobocoin wallet are eligible to receive a new kobocoins anytime they are minted.
As you may already know, the use of mobile financial services in Africa is higher than that of traditional banking services. There are several existing “banking-on-the-go” providers that offer mobile payment and transfer options. Kobocoin, however, takes a fundamentally different approach by utilising blockchain technology to its advantage. It aims to be the solution for the unbanked as well as establish itself as a viable alternative in the African mobile money market where everyone can pay for goods and services directly from their mobile phone while simultaneously be able to cash out to their respective local currency easily.
Another major focus for the digital currency is the large African remittance market. With Africans sending home over $80 billion yearly, Kobocoin intends to provide a quick and more cost-effective alternative for Africans in the diaspora to use for sending money home.
BitcoinAfrica.io was able to interview the founder and lead developer of Kobocoin Felix Ugoji. Here’s the full interview with the brain behind Kobocoin.
What kind of problem, market deficiency or opportunity inspired you to launch Kobocoin?
That’s a question with a number of answers. In some ways, it was a political decision. We Africans always seem to be late to the game when it comes to disruptive technologies. We seem to rely heavily on others making advancements that we eventually have to purchase from them at a premium. I want us to have our own blockchain, built to our specifications, that we could build applications on that apply to us (but with a global outlook to allow them to be exported). When it comes to Mobile Fintech adoption, Africa leads the way globally and by a very large margin! I believe that blockchain technology has the potential to revolutionize Africa and bring financial inclusion to people previously forgotten or ignored by mainstream financial offerings. Look at M-Pesa which is being exported around the globe. It’s a purely African innovation based on the way we Africans barter and trade. Who says we can’t do the same to revolutionize blockchain adoption?
Bitcoin, the big daddy of them all, is massively hoarded. Some estimates state figures of up to 70%. If we Africans adopt bitcoin in the way that some propose, how many bitcoins will there be to go round the whole of Africa? It’s also about ownership. Let’s own our own blockchain and build our own apps that innovate the way we live for once.
Also, the computing power necessary to run the bitcoin blockchain is at odds with the ‘green’ direction of most new technologies. Bitcoin is not ‘green’ in any way. It’s the elephant in the room. Bitcoin mining uses the same amount of power as almost 270,000 average American homes. And that’s a conservative estimate!
How will Kobocoin address this problem or opportunity in a unique way?
Kobocoin is unique because it is a cryptocurrency and blockchain with an African heritage aimed at the African market with global ambitions. Kobocoin (the currency) is made up of four unique human-friendly denominations. These are KOBO, MANILLA, COWRIE, and MANSA. These four currency denominations were carefully chosen because of their significance to us Africans. They allow for four different levels of trade using the same crypto currency.
It is optimised for mobile phone use. It is Proof of Stake (PoS) as opposed to Proof of Work (PoW). Mining is achieved through ownership and not the raw computing power that’s required for PoW blockchains (e.g. bitcoin). The Kobocoin ecosystem uses a fraction of a fraction of the amount of energy needed to keep the bitcoin ecosystem running. Now that’s green!
Raspberry Pi is also supported by Kobocoin (this is part of the IoT initiative using ROKOS technology). At one time I had a dream of every school in Africa having access to the Kobocoin blockchain using Raspberry Pi’s. Unfortunately, I don’t have the resources to fulfill such a dream, but the fact remains that any institution with a Rasperry Pi at their disposal can get the kobocoin wallet and blockchain loaded, and then start creating apps on the blockchain.
At this moment in time, the kobocoin currency is not massively hoarded. This means that it’s ready to be adopted by savvy early adopters and developers with the foresight to see the massive opportunities that lie ahead. Yes, early Bitcoin adopters made a lot of money with bitcoin. Early Ethereum adopters made a lot of money with Ethereum. I hope that one-day early Kobocoin adopters and developers will also see their faith rewarded financially, and have their own stories to tell! I hope the vast majority of winners will be Africans living in Africa!
With already existing mobile financial services how do you intend to overcome the competition?
Existing mobile financial services are centralized and require registration or subscription to participate. Kobocoin’s blockchain technology allows access to everyone regardless of credit status or banking history.
There is no subscription or registration required. Nobody is checking up on you or monitoring progress. I believe that people will see the true benefit of this decentralized operating model as the industry progresses. I’ve not had the privilege of using any of the existing mobile financial services but from what I understand, applications built on the kobocoin blockchain will be able to offer the same services at significantly lower cost, without registration, and with far greater privacy features.
Also, those existing financial services seem static at this moment. The Kobocoin blockchain is a platform that will allow and encourage developers to create apps as the market demands them. Anybody with programming skills can create an app for users of the Kobocoin platform. Permission is not required. If you can think of it and build it, then go ahead. If it’s useful then Kobocoin users will adopt it and you will be rewarded for your innovation without any questions being asked. Can any other mobile financial service offer such freedom to developers and users? I think not. They are all closed systems owned and operated by multinationals.
And bear in mind that kobocoins cannot be faked or counterfeited like traditional money. It is a clean and robust technology.
What do you hope to achieve with this project in the long run?
Global adoption is the quick answer. In practical terms, I’d like Kobocoin to be seen as a global blockchain in the same way that Bitcoin and Ethereum are. Though it’s heritage is African I want the outreach of the kobocoin currency, the underlying blockchain, and the apps built on the blockchain to have a global reach.
I believe that we Africans will bring innovation to the blockchain and fin-tech arena, and I would like to see apps built on the Kobocoin blockchain adopted worldwide (just as we already have in the mobile fin-tech arena with M-Pesa). I really believe that we have the innovative ideas that can move the blockchain industry forward. I believe our ideas and innovations will be exported worldwide. And I’d love to see all those ideas realized on the Kobocoin blockchain!
Like any other altcoin, kobocoin (KOBO) can also be traded against bitcoin and other notable cryptocurrencies. It currently has a market capitalization of around $350,000 and can be traded exchanges such as Cryptopia and Yobit.