How Blockchain Can Make a Country System Stronger
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When people hear about blockchain, the first thing that comes to mind is bitcoin. Bitcoin is just one aspect of blockchain technology. Blockchain has been applied in various aspects, including financial safety, accountability, and processing, as well as education, health, improving quality of life, sustainable development and so much more.
The impressive nature of blockchain technology and why it is essential to countries is summarised in this column. It is important to note the role of blockchain in strengthening country systems, which can help nations enhance transparency, governance, and other critical sectors. For more on how blockchain technology is applied to new industries, see Tezos Launches First Blockchain-based Uranium Marketplace, which highlights the innovative use of blockchain in the energy sector.
A statistical study carried out finance online, gave a good look into the market share and group og blockchain globally.
How Blockchain Has Helped Countries
Blockchains have been employed in many countries, such as Singapore, the United States, Switzerland, China, Japan, and many more. Here is how blockchains have been deployed and used by many of these countries
1. E-governance
The adoption of blockchain and its ability to have its information untampered have been viewed as being used for voting systems and elections by many countries. It is believed that it can improve transparency in voting and also ensure political inclusion.
For instance, Estonia's innovative use of blockchain technology in e-governance has won it praise from around the world. Through the nation's blockchain-based e-residency scheme, people can access digital services from a distance. Estonia is now a global leader in digital governance because to this way of thinking.
2. Legan Tender.
Blockchain and cryptocurrency is seen as a mean to bank the unbanked. This means anyone without a band can still carry out transactions and use these assets as legal tender to pay for commodities.
For instance, El Salvador began accepting Bitcoin as legal tender in September 2021. This implies that businesses can choose to take bitcoin or US dollars as payment, and that bitcoin can be used for regular transactions anywhere in the nation.
More significantly, individuals can use bitcoin to do nearly anything with fiat money, including using it as collateral for bank loans and storing savings in bitcoins. The Lighting Network and the Chivo wallet's deployment make this feasible.
3. Logistics and Supply Chain Management
Businesses around the world are looking into the adoption of blockchain for effective logistics computation and supply chain management. Gone are the days logistics and supply chain are done manually, blockchain has been adopted to reduce human error and ensure transparency in the bottom line.
For instance, IBM extended microfinance loans to vendors in Kenya through a partnership with Twiga Foods, an African business-to-business logistics platform for kiosks and food stalls. The goal of these loans was to assist vendors in purchasing and overseeing additional stock. IBM made a contribution by developing a blockchain-enabled loan platform that assessed the food merchants' creditworthiness.
Blockchain’s impact extends beyond logistics. Discover how Mastercard and JPMorgan are transforming B2B payments through blockchain innovation.
Final Thought
The use of blockchain technology is progressing rapidly, as a number of sectors begin integrating blockchain technology to enhance their operational procedures. This technology has affected the financial sector primarily in poorer nations. People use cryptocurrency as a hedge against hyperinflation and to access exchange platforms where they can speculate on the value of the cryptocurrency.
As institutional interest in blockchain grows, the cryptocurrency market ought to stabilise considerably. The primary obstacle to the adoption of blockchain technology in poorer countries is volatility. As time goes on and volatility declines, more nations may choose to use digital currencies as a means of combating inflation.