- Blockchain technology functions on a similar principle of decentralization since It’s a network of securely, transparent, and verifiable information stored on thousands of computers.
- Without the African crypto market, a precursor to the decentralized finance system was already in place, the mobile money, Mpesa. This ingenuity dominated the African market and led to the widespread adoption of mobile money.
- The sheer application of both Web3 and blockchain technology is enormous. From the African crypto market alone, several inventions show immense potential.
We have all witnessed how cryptocurrency and blockchain technology has made waves in Africa. It caused a frenzy, and many crypto miners were enthusiastic about how Web3 would revolutionize the world. In addition, it ushered in a new age of technology that made every tech-guru excited.
With the crypto world steadily advancing and the African market embracing it, one has to ask what formed the magic link. It is a fact that initially, Africa was ‘slow-paced’ in the Tech world, but now others are even referring to Africa as the future of Web3.
But have you ever asked yourself whether Africa needs Web3 or Web3 needs Africa? You’d be surprised that the latter is more practical and logical than you think.
Brief background story on Web3 and Blockchain technology.
Web3 is merely the third generation of the Word Wide Web for those unaware. It offers a new decentralized touch to the Internet and primarily runs on peer-to-peer protocols. Its founder, Gavin Wood, based his idea on creating an open and secure platform for users to exchange information and value without third parties or intermediaries.Later down the line, his idea quickly gained traction and birthed the popular contract known as the Metaverse and the crypto world. The Metaverse is essentially a virtual world full of possibilities and a model replica of e real world. It was created as an extension of the natural world since it effectively does everything the real world does but through 3D glasses or goggles. It’s a haven for inventors to wild and create fascinating software and technology.
Blockchain technology functions on a similar principle of decentralization since It’s a network of securely, transparent, and verifiable information stored on thousands of computers. Each is interconnected, forming some form of chain or link to one another, and every transaction is stored in a block hence the term blockchain technology.
It offers a secure record of information, completely eradicating fraud. Because each piece of information is stored in each interconnected computer, altering any data would require a consensus decision between all the computers.
The sheer application of both Web3 and blockchain technology is enormous. From the African crypto market alone, several inventions show immense potential. African startups like Chipper cash, Pezesha and even Aza Group are all highly ranked organizations within the African crypto market that directly or indirectly work towards the future of Web3.
Need of the crypto world in the African crypto market
The crypto world owes its popularity in Africa due to several African countries’ financial instability. Many African crypto miners stumbled upon the concept of Web3 and blockchain technology by searching for a means to access additional funds.
The African market needed a shift since its financial institutions weren’t fully catering to every citizen. In some countries, up to 47% of citizens could not access financial institutions. Then blockchain technology ushered in the concept of Decentralized finance, providing a means by which Africa could easily access every financial service that banks or other financial institutions offered.
After its introduction, Africa took this opportunity and embraced cryptocurrency. In the Chainalysis report 2022, North Africa is currently the fastest-growing crypto market. It readily embraced crypto, Web3, blockchain technology and decentralized finances.
Various African countries have been powerhouses in the crypto world in just a few years since its introduction. Remember, this is amid its government rejecting digital currencies. The individual efforts of crypto miners have built the African crypto market.
Why Web3 and Blockchain Technology need Africa
Blockchain technology functions on the primary concept of decentralization; this means there is no single point of origin. Over the years, ‘first-world’ countries have embraced technology and hence have embraced the continuous advancement of technology.\
Significant companies have central headquarters where every piece of information is controlled and managed. There are substantial improvements to accommodate blockchain technology, but none give a perfect environment like Africa.
Because of Africa’s ‘slow-paced ‘ technological development, shifting to a decentralized system is much easier than in advanced countries. This is why African have readily embraced decentralized applications and even gone as far as developing their very own. It has offered a new light on the business world and financial institutions.
Africa’s properties and nature have conditioned it to be the best breeding place for Web3 development and utilization of blockchain technology. If Africa rejected the notion of blockchain, ‘the future of Web3’ would still be undiscovered.
According to the Africa Report in September 2021, the continent’s crypto market reached a significant milestone when Subsaharan users achieved more than $80 million in cryptocurrency holding. An essential step for the crypto world. At the time, it outranked the total amount generated in the US.
Without the African crypto market, a precursor to the decentralized finance system was already in place, the mobile money, Mpesa. This ingenuity dominated the African market and led to the widespread adoption of mobile money. It is the main reason most Africans even trade crypto via their smartphones. It’s a habit developed by the achievements of an African startup with similar goals to decentralized finances.
The African crypto market will dominate the crypto world in a few years. It will eventually achieve its title as the future of Web3 by integrating blockchain technology into its systems. Their needs established a symbiotic relationship between Web3, blockchain technology, and Africa.
One supplies the very features required by the other conditions to prosper. The latter fully integrates these features and offers one of the largest markets for adoption, essentially achieving Web3s primary goal. A goal that not even first-world continents have achieved.
The link between Web3, blockchain technology and the African crypto market lies within how they interact. Unfortunately, most individuals have yet to see vast potential Africa has to adopt new technology. They only view Africa as a source point; a rude awakening will wake them eventually.