Blockchain technology was a key topic of discussion at the UN conference held in Addis Ababa, Ethiopia from the 21st to the 24th of November. The just-concluded four-day conference saw experts discuss the use of blockchain technology in Africa.
The conference was held to review a new Economic Commission for Africa (ECA) with the main aim of the report being to explore the opportunities that the blockchain technology presented to the African continent.
Blockchain technology is an innovative open-source distributed ledger technology that records, stores and transfers data across a distributed network of computers. It was initially invented for the digital currency, bitcoin, but experts have over the years found other applications for the blockchain.
Issues Affecting Adoption of Blockchain Technology In Africa
Speaking to an Expert Group Meeting (EGM) on Information and Communication Technologies (ICTs) on the theme “Exploring opportunities for Blockchain technology in Africa”, Chief of the New Technologies and Innovation Section (NTIS) in the ECA’s Special Initiatives Division (SID), Kasirim Nwuke, stated that there was a lot of publicity around the blockchain technology even though little is known about it.
“Like every new technology, blockchain faces many barriers which must be understood and overcome in order for Africa to take full advantage of it,” he stated.
Mr. Nwuke went on to say Africa lacks sizeable infrastructure, developed financial institutions, strong political stability and lots of capital that can facilitate instant adoption and distribution of technologies. He added that technical constraints were a hindrance to the prevalent adoption of the blockchain technology in Africa.
Such constraints included scalability and speed of transaction of the distributed ledger systems, compatibility of various ledgers, the flexibility of the system against possible cyber attacks and network security, cultural barriers as well as regulatory frameworks.
Incorporation of Blockchain Technology
“It is with the above in view that we commissioned the report which we are presenting to you today, as experts in the field, to review and advice. Our aim in the report is to explore the opportunities and challenges that blockchain technology presents in the context of skills and resource limitations as is the case in most African countries,” added Mr. Nwuke.
“We hope that this report will contribute to ongoing efforts on our continent to understand blockchain technologies, to harness it and to fashion adequate responses to it. We hope that the report will help governments and firms to begin to identify where to begin to build blockchain capacities or capabilities, to ensure that higher education and skills training institutions begin to offer programmes that incorporate this new technology, to ensure that employees, regulators, and citizens understand not just the possibilities of blockchain technologies but also the risks.”
According to Mr. Nwuke, there was and continues to be an increased use and development of the blockchain technology by Africans with Tunisia being the first African nation to place its fiat currency on a blockchain.
Andrew Rugege, the Africa Director for International Telecommunication Union (ITU), remarked on blockchain being a disruptive technology that although still in its development stages, has been proven to work hence a key reason why Africa cannot afford to ignore it.
“It is one instrument that Africa can use not only for financial digital inclusion but to accelerate to attainment of all SDGs. As the Specialized Agency for ICTs and telecommunication, ITU stands with Africa in this endeavor,” stated Mr. Rugege.
He said how important it is for people to trust the blockchain technology if ICTs are to become enablers in the execution of the Sustainable Development Goals (SDGs). Mr. Rugege went on to say blockchain has the capability of securing the trusted use of ICTs in a broad range of domains.
Bitcoin Empowerment in Developing Countries
Speaking at the end of the four-day conference, Mr. Nwuke said,
“We have learned that BC is an emerging technology with a breakthrough potential. We have learned harnessing this technology will require huge investments and that careful evaluation by member States and firms is needed not only to determine the suitability of the technology to help mitigate identified needs but also return on investment.”
The discussion also revolved around bitcoin and how its use can empower people living in developing nations. Bitcoin use was discussed as an avenue of facilitating low-cost remittances and its use as a liaison between other dominant currencies.
“We acknowledged that the technological environment for blockchain adoption in Africa remains challenging. Implementing blockchain requires a change in the record systems of transacting parties to evolve a common data structure,” Mr. Nwuke said.
“Put differently, blockchain solutions require significant changes to existing systems. This is an effort that is not only technically demand but also complicated and expensive. Further, we have to replace our current ways, notably, Near Field Communications, of linking physical products with digitization.”
In addition, participants agreed on the fact that blockchain implementation in certain areas is highly possible with supporting regulation and legislation. These include legal contracts, property records, elimination of financial institutions and mobile bitcoin.
As the ECA continues to work on the final report that will help guide African policymakers in this critical area, its acceptance will not only strengthen the use of blockchain technology in African nations but will also help in the widespread adoption of digital currencies such as bitcoin in Africa.
Women in Blockchain: An Interview with Blockchain Association of Kenya’s Roselyn Gicira-Mwangi
On June 22, 2019, the Blockchain Association of Kenya (BAK) elected a new chairperson during its AGM. Bitcoin Africa talked to the newly elected chairperson, Roselyn Gicira-Mwangi, to understand what the association has accomplished so far, what she plans to achieve as chairperson, and about women in blockchain.
Since it was registered in 2017 as a non-profit, the Blockchain Association of Kenya (BAK) has played a big role in catalysing the largest Kenyan community and network of people working in the blockchain space. According to Gicira-Mwangi, this is one of the achievements that is the “foundation and catalyst of everything that is happening regarding blockchain in Kenya and East Africa.”
BAK has been an inspiration and role model to other blockchain communities and networks in Zimbabwe, Nigeria, Rwanda, and Uganda. Furthermore, the association has grown its non-profit brand through the commitment and help of its community and network.
Through the guidance of a two-year strategic plan, BAK is currently working on several projects to promote blockchain awareness, adoption, and to expand the blockchain community.
“We are creating linkages with strategic partners to roll-out educational programmes for the public. The programmes will span from simple understanding and application of blockchain technology to actual courses for developers. We are also positioning the BAK as a platform to highlight all our partners’ activities to make it easy to plug into events whenever is convenient for them,” Roselyn said. “To get there, first we are working to get representatives in the different regions of the country to enable seamless representation for all Kenyans. This will lead up to a Blockchain summit at the end of the year hosted in one of these regions,” Gicira-Mwangi told BitcoinAfrica.io.
The association is reassessing its constitution and charter as it strives to grow its leadership, advisory, and board structure. A membership recruitment process for institutions, corporations, and individuals will follow this reassessment.
To support blockchain adoption, BAK has established working group forums to extract feedback and suggestions on how emerging technologies such as blockchain can drive development in the country at both levels of government.
Women in Blockchain
More than 50 percent of the people that reach out to BAK for a wide range of reasons are women, Gicira-Mwangi stated. As a woman in the blockchain industry, she believes that the diversity of players in any sector is crucial.
“My personal experience with Kenyan women is that they are keeping up with changes in technology and are keen to get a grasp on the future technological advancements and its impact on their lives. Women are also great networkers because they talk to each other about trends and events. Every other day, I get more women who want to be taken through Blockchain, its implications, and benefits,” she added.
Currently, women in Kenya are holding a wide array of positions in blockchain companies. They are trading and investing in cryptocurrencies, and increasing blockchain awareness to the people within their circles.
In anticipation of the rising demand for blockchain developers in the coming years, Roselyn plans to lead BAK in promoting the training of professionals in this line of work. Furthermore, collaborating with other regional blockchain organisations is another item on her to-do list during her term. Such partnerships could be used to promote blockchain awareness, increase blockchain innovation, and implement blockchain projects.
Gicira-Mwangi is passionate about emerging technologies and formerly worked as a programme officer at UN Women East and the Horn of Africa for eight years. Besides heading BAK, she is the director of Azuri Blockchain Consultants, a firm that connects investors with blockchain startups.
Blockchain Game Gods Unchained Secures New Game Director and Introduces Debit Card Payments
Blockchain card game Gods Unchained has added Magic: The Gathering Arena Game Director Chris Clay to its team and introduced debit card payments. These two decisions aim to drive the game closer to mainstream appeal.
Experience and Achievements
Clay’s experience of more than 20 years in design and game development will be valuable to his new position as game director at Gods Unchained. His task entails prioritising visual designs, new features, and supporting community experience.
In his previous role at MTG Arena, Clay brought on-board three million active players and more than one billion games were played. According to a report by Dot Esports, MTGA – a digital collectible free-to-play card game published by Wizards of the Coast – grossed around $225 million.
Currently, Gods Unchained is the top-selling blockchain game of the year and with Clay’s help, the game could reach greater heights and attract traditional players.
“I believe blockchain represents a new frontier for game developers. Digital asset ownership on the blockchain lets developers support games and their communities in ways we have never seen before in electronic gaming. […] Blockchain is not just for digital currency; it is laying the foundation for a whole new digital economy,” Clay explained.
As an Ethereum-based esports game, Gods Unchained has been allowing its community to purchase booster packs using ether. Users now have an alternative payments option of debit cards. This move could help the game to reach a wider audience by appealing to traditional players.
“To date, blockchain games have provided a niche group of individuals a fun and experimental game ecosystem of NFTs. But now is the time for mainstream adoption. We need these games to show value, and we do not want ‘blockchain’ to sit as just another buzzword. Gods Unchained will become a game that any person can play, regardless of their blockchain familiarity. And the fun of the game will not be predicated on the underlying tech,” stated Gods Unchained co-founder Robbie Ferguson.
In a press release, Gods Unchained announced the rebranding of Fuel Games to Immutable. Immutable is the creator behind Gods Unchained.
If you are into blockchain gaming, check out our guide to the best blockchain games in 2019.
Kenya’s Blockchain Taskforce Releases DLT Implementation Strategy for Kenya
Kenya’s Blockchain and AI Taskforce released its first report to the public since the ICT Cabinet Secretary Joe Mucheru launched the body in 2018. The report depicts an implementation strategy for the adoption of these two emerging technologies that will steer Kenya to the fourth industrial revolution.
The report, titled Emerging Technologies for Kenya: Exploration & Analysis, has stipulated an implementation strategy based on blockchain technology and AI that will solve challenges such as financial exclusion, corruption, high public debt, inefficient public service delivery, food insecurity, and high transaction costs.
Furthermore, the report will guide the government in attaining the Big Four Agenda, which encompasses affordable housing, food security, manufacturing, and healthcare.
The Chairman of the taskforce, Bitange Ndemo stated: “I am confident that this report will guide policymakers in their efforts to stimulate an efficient and resilient economy with respect to the digital transformational technologies, especially with the realisation of the Big Four Agenda.”
Some of the implementation strategies are as follows:
Digital Asset Framework
The Blockchain and AI Taskforce has proposed a digital asset framework that will guide companies wishing to list a cryptocurrency on an exchange. According to the report, the Capital Markets Authority (CMA) is looking into how to regulate initial coin offerings (ICOs) by using the authority’s legal framework and the forthcoming regulatory sandbox.
The digital asset framework is meant to help small and medium-sized enterprises that are unable to raise capital through IPOs to have the alternative of using token sales.
The taskforce had earlier announced its proposal for a Central Bank Digital Currency (CBDC), which would facilitate financial inclusion and low-cost transactions.
With 90 percent of Kenyans already using mobile money, credit cards, and bank transfers to make transactions, adding a CBDC to the existing digital economy could be a seamless process.
To introduce a digital currency in Kenya, the taskforce acknowledges that the country first requires a regulatory sandbox and the tokenisation of government fiscal operations.
Another proposed strategy is the tokenisation of the economy which could help to solve unemployment issues. The unemployment rate in Kenya is one of the highest in the world and the taskforce envisions a platform where work is exchanged for tokens to tackle this issue. Service providers will use the platform to build a work marketplace, store data, and manage transactions.
The Ajira Program, an initiative created to enable more Kenyans to work online, will adopt this proposed strategy. Using the Ethereum platform, Ajira will offer inter-person and inter-service settlements and payments. The initial stage of creating the Ajira platform is ongoing. A flagship service called Ajira Machine Learning (AML) is currently running on this platform. The AI-based service links crowd workers to digital tasks.
AML offers human language interfaces in African languages and pays people for teaching the AI to translate these languages.
The Chairman of the blockchain taskforce, Bitange Ndemo, had mentioned in an interview with BitcoinAfrica.io the need to tokenise Kenya’s economy. In addition, he had observed the importance of helping Kenyans to understand this process.
Target Implementation Areas
Some of the target implementation areas for blockchain and AI include the Ministry of Lands, Huduma Centres where important documents are issued, and the Ministry of Transport.
In the Ministry of Lands, illegally duplicated title deeds are a common issue. With blockchain technology, the land titling process will become transparent and secure.
Moreover, the blockchain will enable Kenya to build an efficient public service delivery system where digitised documents are sharable between various government offices and where Kenyans can trace the payments they make for services.
The Ministry of Transport can build a public transport model based on a sharing economy. This model is then built on a blockchain to ensure that all relevant stakeholders in the transport sector are part-owners and that everyone benefits.
“The Organisation would determine which participants would form part of the networked nodes that would run the validation software as well as the consensus mechanism. Typically, the network of participating nodes would include stakeholders with specific roles and mandates within the ministry and across the transport sector,” the report reads.
The taskforce believes that the proposed strategies and solutions in this report will propel Kenya’s economic development. Additionally, the ICT CS Joe Mucheru illustrates his commitment to have the entire contents of the report executed and to gain the backing of all stakeholders in making these recommendations a reality.
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