Blockchain is a technology that has the potential to transform many aspects of our society, from finance to health care, from education to governance, and more. But what exactly is blockchain, and why is it important for Nigeria to embrace it? In this article, we will explore these questions and provide some recommendations on how to promote blockchain learning, entrepreneurship, and adoption in Nigeria.
What is blockchain?
Blockchain is a system of storing and transferring information in a decentralized and distributed way. This means that instead of relying on a central authority or intermediary to validate and record transactions, blockchain uses a network of computers (called nodes) that communicate and agree on a shared ledger (called a blockchain) that contains all the transactions that have ever occurred on the network.
Each transaction is encrypted and linked to the previous one, forming a chain of blocks that cannot be altered or tampered with without the consensus of the majority of the nodes. This ensures the security, transparency, and immutability of the data stored on the blockchain. Blockchain can be used to create digital assets, such as cryptocurrencies, tokens, or smart contracts, that can represent anything of value, such as money, property, identity, votes, etc.
These digital assets can be transferred and exchanged on the blockchain network without the need for intermediaries, such as banks, governments, or corporations, that usually charge fees, impose regulations, or introduce risks of fraud, corruption, or censorship.
Blockchain can also enable peer-to-peer collaboration, innovation, and empowerment, by allowing anyone to participate in the network, create and access digital assets, and benefit from the value they generate.
Why is blockchain important for Nigeria?
Nigeria is a country with a large and young population, a vibrant and diverse economy, and a rich and dynamic culture. However, Nigeria also faces many challenges, such as poverty, inequality, insecurity, corruption, and poor infrastructure, that hinder its development and prosperity. Blockchain can offer solutions to some of these challenges, by providing opportunities for:
*Financial inclusion and empowerment: According to the World Bank, about 40% of Nigerians do not have access to formal financial services, such as bank accounts, savings, credit, or insurance. This limits their ability to save, invest, borrow, or transfer money, and exposes them to risks of theft, loss, or exploitation. Blockchain can enable Nigerians to access and use digital currencies, such as Bitcoin, that can be stored and transferred securely, cheaply, and easily, without the need for banks or other intermediaries. Blockchain can also enable Nigerians to access and use decentralized finance (DeFi) platforms, such as MakerDAO, Compound, or Aave, that can provide them with alternative and innovative financial services, such as lending, borrowing, saving, or investing, that are based on smart contracts and governed by the users themselves. Blockchain can also enable Nigerians to create and use their own digital assets, such as tokens, that can represent their skills, talents, products, or services, and exchange them with others on the network, creating new sources of income and value.
*Education and skill development: According to the United Nations, Nigeria has the highest number of out-of-school children in the world, with about 10.5 million children not attending school. This affects their chances of acquiring the knowledge and skills they need to succeed in the 21st century. Blockchain can enable Nigerians to access and use online education platforms, such as BitDegree, Udemy, or Coursera, that can provide them with high-quality and affordable courses, certificates, or degrees, that are verified and recorded on the blockchain. Blockchain can also enable Nigerians to access and use online learning communities, such as Bitnation, Decent, or Steemit, that can provide them with peer-to-peer support, feedback, and recognition, that are based on tokens and incentives. Blockchain can also enable Nigerians to create and use their own digital credentials, such as badges, that can represent their achievements, skills, or competencies, and share them with others on the network, creating new opportunities for employment and career development.
*Entrepreneurship and innovation*: According to the Global Entrepreneurship Monitor, Nigeria has one of the highest rates of entrepreneurial activity in the world, with about 40% of Nigerians engaged in some form of entrepreneurship. However, Nigerian entrepreneurs also face many barriers, such as lack of funding, regulation, infrastructure, or market access, that limit their growth and impact. Blockchain can enable Nigerians to access and use crowdfunding platforms, such as Kiva, Indiegogo, or Kickstarter, that can provide them with alternative and accessible sources of funding, that are based on donations, rewards, or equity, and that are transparent and accountable. Blockchain can also enable Nigerians to access and use incubation and acceleration platforms, such as ConsenSys, Binance, or Coinbase, that can provide them with mentorship, training, networking, or exposure, that are based on blockchain technology and innovation. Blockchain can also enable Nigerians to create and use their own digital platforms, such as dApps, DAOs, or NFTs, that can provide them with new and unique ways of creating and delivering value, that are based on smart contracts and governance.
*Governance and accountability: According to Transparency International, Nigeria ranks among the most corrupt countries in the world, with a score of 25 out of 100 on the Corruption Perceptions Index. This affects the trust and confidence of Nigerians in their public institutions and leaders, and undermines the delivery and quality of public services and goods. Blockchain can enable Nigerians to access and use e-government platforms, such as GovBlocks, Democracy Earth, or Bitnation, that can provide them with more efficient, transparent, and participatory ways of interacting with their government, such as voting, registering, paying taxes, or receiving benefits, that are based on blockchain technology and identity. Blockchain can also enable Nigerians to access and use civil society platforms, such as Follow The Money, BudgIT, or Ushahidi, that can provide them with more effective, accountable, and responsive ways of monitoring and influencing their government, such as tracking budgets, exposing corruption, or reporting issues, that are based on blockchain technology and data. Blockchain can also enable Nigerians to create and use their own digital communities, such as DAOs, cooperatives, or social movements, that can provide them with more autonomous, inclusive, and democratic ways of organizing and governing themselves, that are based on blockchain technology and consensus.
How to promote blockchain learning, entrepreneurship, and adoption in Nigeria?
Blockchain is a technology that has a lot of potential and promise for Nigeria, but it also requires a lot of learning, entrepreneurship, and adoption to realize its full benefits. Therefore, it is important for Nigeria to develop and implement a national strategy that can foster and support the development of a vibrant and sustainable blockchain ecosystem in the country. According to the National Information Technology Development Agency (NITDA), the agency responsible for developing and regulating the information and communication technology sector in Nigeria, the national blockchain adoption strategy consists of six key initiatives, namely:
*Establishing the Nigeria Blockchain Consortium: This is a platform that brings together various stakeholders from the public and private sectors, academia, civil society, and international organizations, to collaborate and coordinate on the development and implementation of blockchain projects and policies in Nigeria. The consortium will serve as a forum for dialogue, advocacy, education, and partnership, and will facilitate the alignment of interests, objectives, and resources among the stakeholders.
*Strengthening the regulatory framework: This is a process that involves the review and reform of the existing laws and regulations that affect the blockchain sector in Nigeria, to ensure that they are conducive and supportive of the innovation and growth of the sector, while also protecting the rights and interests of the users and consumers. The process will involve the consultation and collaboration of the relevant regulators, such as the Securities and Exchange Commission (SEC), the Central Bank of Nigeria (CBN), the Nigerian Communications Commission (NCC), and the Federal Inland Revenue Service (FIRS), as well as the industry associations, such as the Blockchain Nigeria User Group (BNUG), the Stakeholders in Blockchain Technology Association of Nigeria (SiBAN), and the Blockchain Industry Coordinating Committee of Nigeria (BICCoN).
*Providing the national digital identity framework: This is a system that enables the creation and verification of the digital identity of Nigerians, using blockchain technology and biometric data. The system will provide Nigerians with a unique and secure digital identity that can be used to access and use various blockchain-based services and platforms, such as digital currencies, digital assets, e-government, e-commerce, etc. The system will also enhance the inclusion, empowerment, and protection of Nigerians, especially the unbanked and underserved segments of the population.
*Creating blockchain business incentives: This is a scheme that provides various incentives and support to the blockchain businesses and entrepreneurs in Nigeria, to encourage and enable them to start, grow, and scale their ventures in the country. The incentives and support may include tax breaks, grants, subsidies, loans, guarantees, incubation, acceleration, mentorship, training, networking, exposure, etc. The scheme will also involve the collaboration and partnership of the relevant government agencies, such as the Ministry of Industry, Trade and Investment, the Bank of Industry, the Small and Medium Enterprises Development Agency of Nigeria, the Nigerian Export Promotion Council, etc., as well as the private sector actors, such as banks, investors, accelerators, incubators, etc.
*Promoting blockchain digital literacy and awareness: This is a program that aims to educate and inform the Nigerian public about the blockchain technology, its benefits, opportunities, and challenges, and how to use and participate in the blockchain sector. The program will involve the development and dissemination of various