Cardano is on a mission to make a difference in Africa.
Cardano (ADA) price soared to $2.46 from $0.9 in less than a month. At the time of this writing, the token price stands at $1.72, which is mainly because of the crash that happened two days ago. People’s belief in Cardano technology has increased immensely, and they are trusting Charles Hoskinson, the creator of ADA, to change the entire ecosystem of blockchain networks.
The number one reason why people are accumulating more ADA tokens now more than ever is- they visually see the changes it is having in many developing countries. Charles Hoskinson strongly believes the PAN Africa blockchain implementation will change the perspective of many countries surrounding cryptocurrencies and their underlying technology. Millions of people in the Africa continent are now using applications built on Cardano to make transactions for everyday purposes. Here is a tweet on Twitter that clearly explains the problems one faces in African nations:
This is why people in Africa adopt newer technologies faster than any other modern, developing country. So, does this mean ADA will give 10x or 20x returns in future? No, that cannot be answered in the current situation, as there is so much uncertainty surrounding it.
The right question to ask would be- Will mission Africa make blockchain mainstream?
This may be a long shot, but- it is possible! Let us dig deep and see how ADA can change the world.
Why choose only Africa?
It is simple- if blockchain ecosystems like Cardano can solve challenges faced by people in Africa, it can easily be adopted in every developed and developing country. Mass adoption of cryptocurrencies used to be a dream, but with Cardanoblockchain applications, it can likely become a reality.
Here are some of the major problems that can state how is the financial system in Africa:
The majority of the population is Underbanked
A recent survey on digital usage in Africa found out that 57% of Africa’s population are not linked to any bank account. If you see the below graphic taken from the report written by Arcane Research, you can understand how different the financial situation is compared to other countries.
You know what this means? It means that almost half of the population are relying on digital channels for transactions.
However, the problem with these financial channels is that they are not accessible to everyone in the country. The infrastructure is just not there for Africans and that is why crypto assets like Cardano and Bitcoin can potentially be the antidote to these challenges.
High-costs and Low Speed Transactions
The local money transferring services in Africa are not up to the mark and they lack the basic foundation of moving money from one account to another. They charge close to 9% per transaction when the amount exceeds $200. Even though they have a centralized body, they are constantly facing problems with mobile money services. The number one reason for this is- low smartphone penetration. In the picture below, you can see how drastic the difference is between Africa and other global entities.
It is an understatement to say there is a digital divide in Africa because more than 50% of the population are not connected to the mobile Internet. This needs more attention because- even if crypto wallets are deployed in the public masses, they need to have proper digital connections to have access. That is not the case with Africa right now.
High Inflation rates and Financial instability
Can public masses generate wealth if inflation beats them? Nope, there is very little chance for that to happen in the current economic climate of Africa. If you see the inflation rate in Africa compared to the world average in the image below, you will understand that the value of ZAR currency against the US Dollar dropped by over 50%.
If the government entities cannot keep up with the services and demand, how will common people generate wealth with the amount they have been saving for years? This is exactly why Africa is the best destination to experiment with blockchain technology that can fight inflation in a global scenario.
Another problem that most overlook is political instability. From a report done by the World Bank, we can see a continuous uptrend in the number of civil conflicts registered. This not only makes the public vulnerable, but it also collapses financial infrastructures and causes forced migration.
How can cardano make a difference for 53 African Nations?
Cardano claims to be the third-generation cryptocurrency to successfully tackle issues related to scalability, interoperability, and sustainability. Deploying such a network in an entire continent might seem too early, but it is not because the Cardano blockchain system is more efficient than other cryptocurrencies. It doesn’t let any individual mine block until they are assigned as block leaders. Another huge advantage of implementing blockchain using Cardano is it solves the scalability issue.
They do this by using a RINA technique, which splits the P2P network into multiple subnetworks that can interact. This network architecture not only deals with scalability but also increases the security of the user. Now, that is the technical side of how cardano is making a difference.
If we take a normal standpoint, we can see how huge it will be once Cardano covers every nation of Africa. When asked about the dream of Cardano, Charles Hoskinson emphasized providing identity for everyone in the world- it doesn’t matter if they are higher or lower in the social order. Charles believes everyone deserves to be given the same opportunity to enter the marketplace and make the most of it.
If Cardano succeeds in Africa, its potential will be limitless. The number of users will not be in millions, but it will be in billions. The team behind Cardano proved that they have the utmost commitment to this project, as we see them exploring different nations around Africa, including Nigeria, Rwanda, Uganda, and South Africa, for the last five years.
The workings of four-five years led the Cardano system to mature and build new technology, like Atala Prism, to give a digital identity or DID. 5 million students in Ethiopia are now using these DIDs to track their performance. Even though this is an identity given to a unique individual, many people in the Cardano ecosystem believe it can be implemented to find jobs, pay for the property, conduct voting, and build a sustainable infrastructure.
This may just be the beginning of something no one ever saw coming. The users in the chain can increase to 107 million, enabling Ethiopians to be part of their first globalization with the US and other powerful economies.