Funding Prospects For Blockchain Startups In Nigeria
Blockchain, today has become a household name as far as digital currencies is concerned. The brainchild the world’s first crypto-currency (Bitcoin) founder Satoshi nakamoto who remains anonymous till date. The idea of a blockchain was initially conceived in 2008 for the transaction of bitcon, but has now found its in use in so many other fields.
What Is Blockchain?
Blockchain is an open digitalized, decentralized, public ledger in which transactions made in bitcoin or another crypto-currency are recorded chronologically and publicly and transactions between two parties can be permanently verified. Once a transaction is recorded, the transaction cannot be modified without altering all other transaction blocks. This is accomplished by using cryptography to link the contents of the newly added block with each block before it, in such a way that any change to the contents of the previous block in the chain would invalidate the data in all blocks after it.
In summary, blockchains are:
- Transaction ledgers
- Trustless i.e it is not based on a system of trust
- Secured by cryptography
- It can be made public
Possible Application Of Blockchain In Nigeria
Trading In Stock Market
Blockchain can drastically reduce the risks of frauds and errors encountered in operations in stock market trading. Not forgetting that with the technology, the transaction is almost instant. The Australian Securities Exchange are already exploring blockchain to reduce costs and improve overall efficiency.
All banking systems today in Nigeria are built around a centralized database. The costs, time, labour and risks of fraud that is involved in reconciling and processing of billions of transactions is a challenge that the banking industry has not been able to fully address, despite so many upgrades. The global surge and success of bitcoin and so many other crypto-currencies has shown the marking sector the advantages of blockchain technology when it comes to minimizing online banking frauds.
It can provide the solution for solving the costs involved in Know Your Customer (KYC) verification and credit underwriting. This can be done by allowing for the independent KYC verification.
I remember 2 years ago, I read a publication about the Central Bank of Nigeria (CBN) saying it would look into the technology behind bitcoin and see if it could implement same in Nigeria. Many banks are currently researching on the possibility of migrating their banking systems unto the blockchain network.
Blockchain can make social networking profitable for users in Nigeria. An example of a social platform using the blockchain technology today is called Steemit where users make money by posting contents, liking, commenting etc.
Blockchain provides the added security of data not getting lost or becoming corrupted.
Issues of counterfeit drugs can be tackled in Nigeria. This will be done by tracing each transaction between the drug manufacturers, wholesalers, retailers, pharmacists, and patients. Nigeria has not really gone digital when it comes to health records, it could also be used to authenticate and improve existing health records for better treatment.
In Nigeria where people battle copyright problems and use of others intellectual property, Blockchain can used to catalogue and store Intellectual property/Copyright in a digitally secured manner. It has the potential to let owners see who is using their work at any given time.
Music And Video Distribution
Same theory applies in terms of intellectual or copyright issues. Music artists can catalogue and store their music and videos in a digital manner and get paid someone plays or purchases the music or video. This will work on the concept of peer to peer music or video sharing where the rights of the owner is protected, and they money for their hard work.
8. Supply Chain
The shared version of events that blockchain establishes helps improve supply chain efficiency, better multi-party collaboration and easy resolution in case of disputes, since all the facts will be laid out.
In our society today, most people understand blockchain to be limited to bitcoins. However, in an era when the world is going global and being digitalized and Nigeria is investing more on innovative solutions using technology to make processes faster, blockchain has opened the door for startups and businesses to devise adopt and implement blockchain based solutions. If you are facing systematic challenges in your business, it would be good to see if a blockchain based solution is feasible for your business.