Tech experts look to blockchain as promising tool to economic advancement

Joy Agwunobi

The potential of blockchain technology to drive economic growth and development in Nigeria was recently brought to fore at a conference organised recently by the National Information Technology Development Agency (NITDA).

The conference, tagged “ Digital Nigeria international Conference 2023”,highlighted the role of government and the private sector in exploring the opportunities presented by blockchain technology, as well as the need for policy reforms and investment to support the development of a robust digital infrastructure

Simply defined, blockchain is a digital ledger that records transactions in an immutable and transparent manner. Each transaction is validated and recorded on a network of computers, called nodes, which are all connected to each other. Once a transaction is recorded, it cannot be altered. This creates a secure and reliable record of transactions that is maintained by the network of computers connected to the blockchain.

A PWC report predicts that blockchain will have a significant impact on the global economy by 2030, with the potential to increase global GDP by USD 1.76 trillion.

Lise Li, the Head of BSV Blockchain China Hub and CEO of Shanghai Keyi Technology, provided a local context for blockchain technology in Nigeria. She explained that there are two ways to think about blockchain technology: the technology itself and the impact of digital technology. She pointed out that blockchain technology can connect all the players in a supply chain, allowing them to share data and information about products.

“ China is one of the biggest international traders and we do have lots of products imported and exported to other countries . Many Africans go to  Guangzhou city to purchase a lot of products to bring them into this country. However, because both countries are getting more and more developed over the past decades,people are more focused on the quality of the product whether it is authentic or of a reliable  supplier”, she said.

One of the key points that Lise Li made was that blockchain can be used to connect all the data from all the participants in a supply chain, creating a comprehensive and interconnected ecosystem. She specifically highlighted the supply chain sector as an area that would benefit from the use of blockchain technology.

Salisu Uba, the CEO of NatQuest, spoke about the role of blockchain in the agriculture sector, focusing on infrastructure as a key enabler. He explained that the success of blockchain in agriculture depends on four factors: infrastructure, knowledge, applications, and use cases.

“I’m glad to read  that the government is working around building a public digital infrastructure which is key to sustaining how internally the capabilities will be available.  But  before then, I think the very important key aspect that is fundamental to upscale different solutions between blockchain and digital technologies is procurement and supply chain,” he noted.

Eva Porras, the Founder and CEO of Blockchain Smart Technologies, highlighted the key characteristics of blockchain technology, describing it as a “machine of truth.” She explained that it is secure, transparent, and can keep a permanent record of information that cannot be altered. This, she argued, makes it a powerful tool for tracking and recording information in a way that is both reliable and trustworthy.

According to Porras, blockchain has several advantages over traditional legacy technologies, including its transparency, security, and cost-effectiveness. She gave the example of tracking donations to non-profit organizations to illustrate how blockchain can be used to ensure accountability and transparency.

Michelle Chivunga, CEO of Global Policy House, discussed the potential applications of blockchain in government policy. She highlighted the work that GPH is doing to help governments around the world explore how digital technologies, including blockchain, AI, and data, can be leveraged to improve their operations and services.

Michelle Chivunga stressed that emerging technologies, such as blockchain, have the potential to drive economic growth and social development in Nigeria and other countries. She spoke about the “spectrum” of emerging technologies and the various ways in which they can be applied to support government initiatives and drive positive change.

“Nigeria has already got a policy around blockchain and how they want to roll out with blockchain and it’s really important especially for the african continent to start to think about on how we can leverage these technologies blockchain and what policies do we need to put in place so that we can fully adopt the technologies”, she said.

 Chivunga highlighted the importance of taking a strategic approach to implementing emerging technologies like blockchain, rather than simply jumping on the bandwagon and adopting them without fully understanding their potential impact. She also emphasised the need for government officials to have a solid understanding of the technology, how it works, and how it can be regulated and integrated into policy.

Apollo Eric, CEO and founder of BitLipa, focused on the potential of blockchain technology in the entertainment industry, specifically in terms of solving copyright issues. He went on to explain how blockchain can be used to create a transparent and immutable record of ownership and usage rights for digital content, such as music, movies, and other forms of entertainment.

Eric explained that blockchain technology could be used to reduce copyright infringement in the entertainment industry by creating a digital record of ownership for creative works. This record, he noted, would be immutable and transparent, ensuring that creators have full control and ownership of their work.

The BitLipa CEO also mentioned the use of smart contracts as a way to protect copyright through blockchain technology. Smart contracts are digital agreements that are stored on the blockchain and automatically executed when certain conditions are met. In the case of creative works, a smart contract could be set up to automatically pay royalties to the creator when their content is used. This would ensure that creators are fairly compensated for their work, and would make it more difficult for others to take advantage of them.

 “Nigeria is really leading in the film and  music industry across the continent and blockchain is the only technology in my opinion that can really do a lot of this intermediation. If I’m going to produce music I need to be able to give it directly to the people who follow me as a musician ,” he stated.