Blockchain Technology in Emerging Markets

Bitcoin and its underlying blockchain technology are relatively new with lots of potential applications. Various use cases of blockchain technology are being developed for almost all industry and market segments by both private and public sector organizations. While those in developed economies spearheading most of the research and development, past experience and studies suggest that the developing nations and markets are going to benefit the most out of it.

A report on the popular business journal, Harvard Business Review indicates that the emerging markets, which are currently in the process of building vital infrastructure for banking, financial and online services will “leapfrog” by directly implementing the latest developments in cryptocurrency technology. The publication gives an example of the telecom sector in Kenya and South Africa, where the countries directly implemented 3G networks, skipping the older copper cables and optic fiber.

The signs of leapfrogging to cryptocurrencies when it comes to financial services are already visible on the African continent where platforms like BitPesa are enabling the population to send and receive money. These services make use of Bitcoin in the back end to facilitate both domestic and cross-border transactions.

The report also lists few opportunities for developing economies, which can enable them to implement advanced, state of the art services to provide basic services. One such opportunity involves the use of Aadhar biometric identity system in India. A combination of Aadhar number and blockchain technology can pave the way for secure transactions.

Dubai’s Blockchain Strategy is another great opportunity for the Middle Eastern market, where governance can be digitized using blockchain technology. Once the solution is first implemented in Dubai, it could eventually get adopted by rest of the Emirates before spreading to the whole of Middle East.

These are just a tip of the iceberg. As new applications emerge, they are going to be lapped up the same way in both emerging and developed markets.

Ref: HBR | Image: NewsBTC