Blockchain applications eliminating fraud in Africa

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  • Blockchain has endless possibilities, from improving the healthcare industry to redefining the world’s financial structure
  • The unchangeable nature of blockchain applications significantly boosts their efficiency.
  • Blockchain applications all advocate for a single principle; empowering the user directly. With its application, the user will have complete control over their data and where they will use it.

Web3 technology and Africa’s system are like bread and butter. The core applications o blockchain technology within the various diverse fields are numerous and are consistently growing. The decentralized nature of blockchain has allowed innovators to apply it in new and creative ways. Blockchain has endless possibilities, from improving the healthcare industry to redefining the world’s financial structure. One of the few core functionalities of this new technology is curbing fraudulent activities within Africa. While achieving this goal, various concepts, such as digital IDs and decentralized identifications, have ushered in a new age of integrity.

The ability to maintain its integrity and apply and redefine it in more than one way showcases the true beauty of blockchain and all of its capabilities.

Africa’s struggle with corruption and fraud.

In some African countries, one being Kenya, we are often used to the term “fraud”. It is often not to come by fraudulent activities these days, and the number only consistently grows. According to experts, a typical organization loses 5% of its revenue to fraud each year. In some African countries, it can go as high as 15%; in some cases, identifying these activities is difficult.

Africa's ecosystem
Africa’s ecosystem is plagued by identity fraud and corruption, but fortune-tellers and various blockchain applications have developed the need for decentralized identification through digital IDs.[Photo/VALR]
Take into account the mechanic industry in Africa. Often, mechanics use secondary or poor-quality spare parts while fixing or doing repairs for clients. This ensures that the client will have enough time to use their vehicle but will ensure that the client will come back for additional repairs. Counterfeit [products circulate in Africa’s economy, and authorities often try to curb these activities but lack the necessary equipment.

Also, Read about African problems that blockchain technology is already solving.

Identity fraud is also another rampant activity that occurs within Africa. Africa’s massive population has created various loopholes within its system. Now acquiring a false identification in some African countries is more plausible.

Africa’s lack of official proof of identity causes a create hindrance to its normal functioning. In some circumstances, many citizens need access to many services simply by needing proper identification. Fortunately, Web 3 technology in Africa has provided the necessary means to quickly create digital IDs or decentralized identifications that would allow the verification of citizens to be much more accessible.

Blockchain applications in Digital Identification

Decentralized Identification is among the numerous blockchain applications that can significantly benefit Africa’s ecosystem. With a population of over 500 million, acquiring an efficient identification system is cumbersome. Granted, there are numerous African states which have implemented the use of NAtional IDs that allows easy verification.

However, due to the age of this traditional identification, various loopholes have been exploited, causing a massive rate of Identity fraud within various African countries. Today acquiring a forged national ID is much easier than people think.

Fortunately, Web 3 technology in Africa provides the perfect solutions. Due to the various elements surrounding numerous blockchain applications, isolating elements such as decentralization is relatively simple. Blockchain can curb fraud in Africa through three main features.

Also, Read Beyond Art: Non-Fungible Tokens (NFTs) are proving their value in the crypto world.

Distributed nature of blockchain applications

First and foremost, blockchain is a digital ledger containing transaction data shared across a peer-to-peer network that reconciles continuously. Developers could take this distributed nature and apply it in decentralized identification. One of the few main disadvantages of a centralized authority which most African governments use is the existence of a single point of failure.

Exploiting numerous vulnerabilities allows malicious individuals to manipulate the system to commit identity fraud. Keep in mind this goes beyond the assets of a system. Corruption is also another pang in Africa’s ecosystem. Bribery allows others to get ahead of the system and as such, acquiring a false identity or stealing another is quite simple. 

The decentralized and distributed nature of blockchain curbs this by removing this single point of failure. Identity theft can occur in numerous ways, but the distribution of authority makes this problematic. It is also efficient since it removes third parties’ liability for handling their data. In addition, the dispersed nature of various African countries enables the distributed system to reach even the most remote areas. 

Typically, acquiring an identification requires a long process; for some, it can be challenging. Implementing this blockchain application and creating digital IDs removes the need to travel from one place t another to be recognized by the nation as a citizen.

Blockchain is immutable and traceable.

These two factors go hand in hand. The unchangeable nature of blockchain applications significantly boosts their efficiency. Counterfeits are a global issue, more so in Africa. It is genuinely a guarantee you will often find both the original and duplicate versions of any item in Africa.

To curb this fraudulent activity Web, innovators can use three technology in Africa to ensure that no changes will result in an entire system notification. Decentralized identification can benefit from this feature also. In most cases, hospitals often lose records of patients or guardians who misplace such vital information. Losing such a document will result in a long and gruelling recovery process.

Also, Read NFT Security vulnerabilities plaguing the NFT Marketplace.

When a Digital ID is stored within na database, users can trace it. Adding the immutable nature of blockchain, no amount of years will change that information. This enables accountability within an African country. Aside from cubing fraudulent activities in Africa, it helps Web 3 technology in supply chain management.

Blockchain can be permissioned

Blockchain applications all advocate for a single principle; empowering the user directly. With its application, the user will have complete control over their data and where they will use it. As such, any functionality, service or privilege linked to the digital IDs will require the user’s authorization.

This is a feat Web 2, unfortunately, failed to accomplish. Blockchain relatively created the exact balance between confidentiality and integrity. African institutes can easily integrate and conduct their services around the decentralized identification system. If implemented correctly, it completely eradicates identity fraud while also dealing with corruption eating away at Africa’s economy.

Conclusion; blockchain applications revolutionizing Africa

Fraudulent activities are one of the few things blockchain applications can eradicate. The compatibility between Africa web three technology has led to the renovation of the existing system and the creation of a new system. Blockchain has truly earned its rightful place in the Fourth Industrial Revolution.


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Ken Mutuku
Ken Mutuku
Your Guide to the Future of Tech, Web3, and Digital Storytelling. With a keen eye for detail and a knack for concise communication, Ken Mutuku is your go-to professional for decoding the next wave of technological evolution. Whether through captivating videos, insightful articles, or engaging presentations, he masterfully crafts messages that deeply resonate with his audience, setting him apart in the digital landscape.