Bitcoin
Meet Africa’s Blockchain Startups: Cryptogene
Cryptogene is a Nigeria-based startup that is building a hub to bring blockchain technology to the mainstream in Africa through education and the development of blockchain tools for individuals as well as organizations.
Cryptogene was founded in mid-December 2016 by a passionate crypto-enthusiast Bashir Aminu as a telegram community where people of all nationalities were welcome to share verifiable sources of information towards building interesting cryptocurrency and blockchain-based technologies.
In an interview with BitcoinAfrica.io, founder “Bash” (as popularly called by the members of Cryptogene’s telegram group) explains how Cryptogene aims to utilize cryptocurrency and its underlying technology to improve business and social infrastructures in Nigeria and beyond.
BitcoinAfrica.io interviewed Bashir, co-founder of Cryptogene, to find out more about this new African blockchain startup.
How did you come to establish Cryptogene?
Last year in December, I had an argument with the billion coin (TBC) supporter about whether TBC was a viable cryptocurrency or not. This was a telegram group that I was in. After laying down my points and convincing everyone that it wasn’t and was, in fact, a scam, I had a lot of messages from people asking me to create a group just for the cryptocurrency market, which I did on the 14th of December last year. That’s basically how Cryptogene came to be.
What makes Nigeria the right place for this kind of innovation?
The blockchain can potentially transform the way we interact with each other and our environment. It could potentially revolutionize banking, government, etc. Nigeria is ripe because we currently have a lot of youths with great ideas and wonderful visions and no one to help them accomplish their goals. A lot of things are still based on who you know. Blockchain can eliminate that.
Centralization breeds corruption and abuse of power especially when you are dealing with centralized systems controlled by humans which affect the lives of many people
Take a look at resources for example. Imagine oil and gas were equally distributed or decentralized around the world. You would not have all these senseless wars or a handful of Nigerian families controlling all the oil wealth.
The future is about putting people and humanity first. This is what Cryptogene aims to achieve. It’s meant to give everyone a fair chance. It doesn’t mean there won’t be competition or reward for hard work. It just means that everyone has a fair chance of succeeding if they put in the same amount of effort and time.
What are the areas of immediate focus for Cryptogene?
Right now, our focus is the following
1. Educate
2. Adopt
3. Implement
1. We educate citizens on what blockchain is all about. What its potential is and how it can help them in their daily lives and businesses.
2. We get into the adoption stage. After we have educated, we have to now convince them that what we’ve educated them on is actually worth it.
3. Implement. After education and adoption comes implementation. Getting things on the ground for blockchain and cryptocurrency use in real life cases.
What are some of the milestones you’ve achieved in your 6 months? And looking forward, what are you excited about?
Over the past 6 months, we’ve witnessed phenomenal growth. We’ve had upwards of a thousand sign-ups on cryptocurrency trading sites like Poloniex and Bittrex, and many of these signups come from people that came from a background of investing in HYIPs and other Ponzis. Cryptogene has been able to change their mindsets towards more use cases. The trading group has grown in leaps and bounds in just a few months. We also have the exchange. It has become a safe haven for buyers to meet sellers and conduct cryptocurrency transactions without fear of being scammed.
For the future, I look forward to a future in which Cryptogene will become a reference point for all cryptocurrency and blockchain activities in Africa and indeed the world at large. I see Africa as a hub for cryptocurrency, where the new generation of startups will spring up and take the world by storm.
It’s been suggested that blockchain may be able to help solve long-standing problems in Africa, which area is Cryptogene interested in?
The economic development of many African countries is dependent on the success of local SMEs receiving the financial support they need to grow. This is where blockchain could prove particularly beneficial. Our platform would allow entrepreneurs share their ideas and get crowdfunded. This is our major play, which is why it’s the final step in our roadmap. We intend to make sure we have enough people understand the potentials of blockchain technology so as to adopt and then finally implement it in their businesses.
What do you see as the biggest challenge to adopting blockchain technology in Nigeria?
I think the biggest challenge to adoption is regulation. The government has a huge role to play in getting this technology mainstream. Blockchain faces a hurdle in widespread adoption by pre-existing financial institutions if its government regulation status remains unsettled.
Are you optimistic about the future of blockchain technology in Nigeria and Africa in general?
Optimistic, yes. Blockchain is going to give Nigeria and indeed Africa what it lacks and has been hampering its development for too long.
1. Transparency: With more people getting to know the capability of the blockchain tech, it would not be long before the people demand such transparency in essentially everything, from the individual workplace to the affairs of the state thereby reducing corruption and eventually eliminating it.
2. Technology: It is arguably true that blockchain is the next technological revolution or fintech revolution and this means that Nigerians and Africans would have a stake in it and not be reduced to consumers but also contributors even at this early stage. We want innovative Africans that create and contribute positively to the growth of the world. An Africa that can look inward and solve its problems.
3. A Global Village: As is the aim of the internet and technology itself, Nigeria/Africa will be made into a more cohesive unit. This promotes peace as well as confidence in a stable business environment.
4. Economic advantage: With security and transparency, more entrepreneurs will seek ways to develop or invest in otherwise neglected sectors. Individuals also get to invest in sectors of their choice without being subjected to the popular corrupt oligarchy. This means an increase in economic and human value, combating poverty and promoting development.
You can find out more about Cryptogene and its activities on its website at Cryptogene.co.
Statistics, examples, and ways to legally use cryptocurrency
October 1, 2013, was a turbulent day for San Francisco Public Library. A dozen FBI agents pretending to be usual visitors surrounded a man sitting at one of the tables, took his laptop and put a pair of handcuffs on his hands. That man was Ross Ulbricht, founder of Silk Road – the largest darknet marketplace for drug dealers, killers, and other criminals. The seizure of Ulbricht was supposed to tackle the illegal online trade, but, as the news site DeepDotWeb wrote, the bust was “the best advertising the darknet markets could have hoped for”. The reputation of cryptocurrency also suffers from associations with terrorists, who sometimes use it for their needs. How big is the real scale of the problem? And how many legal ways to use crypto exist? ChangeNOW has dived into the topic – and suggests you an overview of the current state of the problem.
Highlights:
- The drugs trade volume using cryptocurrency is relatively large
- Crypto was a significant reason why a part of drug sales migrated to the web, though stays yet not viable and anonymous enough for dealers (same as for terrorists)
- As efficient use of blockchain technology requires good infrastructure, crypto remains not suitable enough for many terrorist groups
- However, some terrorists are trying to adjust to anonymity threats and hold fundraising in crypto
- Legal ways to use cryptocurrency include dozens and vary from IT services to car rentals
Crypto & Drugs & Rock’n’Roll
The total volume of the online drug market using cryptocurrency is around $1 billion. It is located in the darknet, which provides an attractive, profitable, and mostly secure environment for drug dealers. Cryptocurrency, in turn, allows making payments that are hard to be tracked by authorities. This is how blockchain technology has helped to bring a big part of drug sales online from the streets. And it’s not only about drugs themselves – many legal opioid drugs are illegally sold here, too.
However, cryptocurrency is not always as secure and anonymous as it is thought to be. The information about any transaction ever made stays forever in the blockchain, which makes the system way more transparent than cash payments. This is a significant limitation for using crypto in illegal purposes.
According to the University of Technology Sydney, about 46% of criminal activity of each year is connected to Bitcoin. As for the drug sale itself, trade volumes in crypto keep rising, but the percent of Bitcoin drug transactions out of all transactions goes down. This means Bitcoin is more frequently used for legitimate purposes.
What cryptocurrency is used for drug sales most often? Surprisingly, privacy coins such as Monero are used only for 4% of transactions. Due to its pioneer position, Bitcoin is used in 76% of all deals despite all its anonymity risks.
The main problem for drug dealers using crypto is to turn their income into cash. This move remains complicated and insecure. Most cryptocurrency exchanges have instruments to define whether a transaction is coming from a suspicious source like the darknet. The rise of Monero use in the online drug market will hinder such tracking. However, for the reasons listed above, crypto is unlikely to completely replace regular cash in drug sales in the foreseeable future.
Cryptoterrorism
The views on how much cryptocurrency is used and will be used by terrorists vary widely. While some claim that terrorists have no infrastructure to use it and the methods are not secure enough, others argue that they are learning fast and adjust to crypto rapidly. Let’s see what both sides say.
Not actively using, unclear future
Lack of appropriate infrastructure, inability to use crypto. Most terrorist groups settle in the Middle East region, especially on its remote and war-torn territories. The vast majority of roads and technological infrastructure have been destroyed. In such circumstances, cash remains the most common and convenient way to pay and fundraise. Imagine a gun seller in a Syrian village – does it look like he has a tool to accept Monero?
Anonymity threats. Given the relative transparency of blockchain mentioned above, crypto might remain too unsafe for terrorists. Miners can see any potential terrorist money exchange while checking transactions, and it’s not too hard to see who sends them money. It can change with the rising use rate of privacy coins, but the ability to spend such money remains questionable.
Increased attention to crypto by the authorities. As the number of transactions keeps rising, more regulatory bodies’ attention gets focused on cryptocurrency, which apparently makes terrorists nervous and cautious.
Problems of specific currencies. While top cryptocurrencies like Bitcoin receive much regulatory attention, others remain marginal and unreliable because of a lack of support. Conflicts and uncertainty lower the trust to such cryptocurrencies – yes, even terrorists’ trust.
Using actively now, increasingly in the future
Terrorists seem to be rapidly learning to escape from tracking in blockchain. Several years ago it was easy to find any address or transaction made for a terrorists’ fundraiser. Today they use well organized and finely designed websites, where detailed video tutorials show how to donate money anonymously. Unique Bitcoin addresses and other crypto tricks are used to preserve security. Analysts from intelligence services claim there’s only going to be more such cases. And, of course, privacy coins are a “great opportunity” for terrorists too.
Shift to cryptocurrency is a reaction to economic sanctions. ISIS has lost most of its territory and resources, Hamas has been sanctioned by the West. Having been cut off from all main financial institutes, terrorist groups had to find other pathways for their financial activities – and cryptocurrency appeared to be the best substitute.
There might be difficulties and inconveniences, and the number of terrorists using crypto is yet unknown – but as we can see, digital money in terrorism is reality. Same as in drugs. And this is what cryptocurrency is notorious for, lacking trust among millions of people. The reputation of some of the exchange services only adds to this mistrust – ChangeNOW has carried out a special investigation on how such platforms may cheat their clients. But can you buy anything besides heroin and firearms with your crypto? What about pizza or a concert ticket?
Only Antarctica left
Cryptwerk, a platform monitoring actual use cases of different cryptocurrencies, says there are about 3500 ways to spend Bitcoin and more than 800 for Monero today. They range from music services to car rentals, from buying clothes to hotel booking services, and from sports bets to virtual tours.
Organizations accepting cryptocurrency are located on all continents besides Antarctica (what could be a better place for crypto than a continent without governments and countries though?). Mostly, in the USA and Central Europe. Bitcoin as the largest cryptocurrency is relatively widespread in India and Southeast Asia.
As this is a whole another topic, ChangeNOW will issue a post dedicated to use cases of cryptocurrencies. As it will be more detailed, who knows – maybe you’ll find a pizza right by that you could pay for from your crypto wallet!
This article was contributed by Jeremy from ChangeNow.
Buroka is a new breed of cryptocurrency exchange for Africa! Currently operating in Nigeria, Buroka was designed to fulfill the needs of modern Africans. Buroka allows customers to buy and sell Bitcoin with Naira via Local Transfers and cash deposits at the bank. In this Buroka review, you will learn more about the exchange and how you can use it to buy bitcoin in Nigeria.
How to Buy Bitcoin on Buroka
Step 1: Account Creation
To create an account, visit Buroka.com and hit the “Register” button. This will lead you to a page where you will be asked to fill in your personal information, including your name, email address, and password. Like any other serious exchange, Boruka will ask you for your ID, Proof of Address, and to take a selfie with your ID to eliminate fraud.
Step 2: Fund Your Account
Funding your account on the platform is straightforward. You can deposit either via bank transfer or at any bank branch. Make sure to use a unique reference code given to you by Buroka deposit system.
Step 3: Buying and Selling BTC
Once your deposit has been credited to your account you can immediately buy your Bitcoin. The buying and selling tab is located on the top right corner of the dashboard. There you can input the amount of bitcoin you want to buy. Once you do that, you then click on the “BUY BTC” button.
Step 4: Storing Your BTC
After buying BTC, Buroka provides users with the option of either storing bitcoin on the platform in a BitGo wallet or any other wallet of their choice.
Currently, Buroka only supports bitcoin (BTC). However, the exchange plans to include other cryptocurrencies going forward.
Security
Buroka exchange makes use of Two-Factor Authentication (2FA). 2FA provides an extra layer of protection for users. With the 2FA in place, an extra piece of information is needed before login into the platform or making any withdrawals.
In addition, Buroka’s platform is also protected using the latest security technology, including web-socket and API protocols that allow for a fast and secure order processing. Buroka also makes use of a well-updated SSL certificate, which makes it easy to detect a phishing attempt.
To further ensure that clients’ funds are secure, Buroka operates segregated accounts. These accounts are held with trusted banks so that clients can enjoy an extra layer of security provided by the banking system.
Conclusion
Buroka is a relatively new Bitcoin exchange with a well-designed, user-friendly interface. The Bitcoin trading platform provides several deposit options, which is attractive for Nigerian Bitcoin traders, as well as competitive market rates for both buyers and sellers.
If you are looking to buy or sell bitcoin in Nigeria, you can give Buroka a try.
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