How Blockchain can combat poverty?
In order to accelerate the speed of fast-growing international finance, major businesses and companies are surfacing their business activities on a network based on Blockchain technology. But the advantages of the technology of Blockchain are not limited to the upper crust of high finance. A cost-efficient and open way to record transactions is provided by the Blockchain Platforms. In a fraud-free and theft-free world, Blockchain allows unknown individuals who don’t know or trust each other to exchange money securely. Several start-ups, relief agencies, and non-profit organizations are aggressively spreading the benefits of Blockchain technology to developing countries in order to help vulnerable people gain easier access to loans or to secure their assets from financial institutions. We will address the ways in which Blockchain can battle poverty in this article.
How will Blockchain help the war against poverty?
The world’s poorest people have been ignored for a longer period of human history, and progress has meant little to them. Potential shortages, corruption, inflation and high unemployment rates have played a major role in making them vulnerable and unfortunate. The Blockchain platform aims to solve this global problem and tries to combat it in the following ways:
- Reducing Remittance Cost: We are all aware of the fact that the position of intermediaries such as Western Union, Uni Transfers, etc. needs to be performed by sending money overseas, and they attract high transaction fees for this, which makes the whole process costing high. One way to pass money at zero or low cost in any part of the world is to use cryptocurrencies inspired by Blockchain technology instead of currency. Blockchain platforms allow users to transfer cash at comparatively cheaper rates, which in traditional methods of exchanging money is hardly feasible.
- Enhancing financial inclusion: About 25% of the world’s total population is unbanked, according to the World Bank, and they still have no way of accessing a bank account. Aside from this, despite possessing a bank account, many developing nations do not have access to such programs and benefits. They don’t have the means to take part in global trade. Here, the cryptocurrency inspired by Blockchain plays a crucial role in empowering small businesses and allowing them to participate in global import and export. Another way of financial inclusion, by giving them access to foreign payments, benefits poor people. This helps to decrease the lack of access to financial services for the vulnerable.
- Combating abuse: The corruption of those in power is a big problem or obstacle that developing countries are grappling with. A solution to this could be the blockchain. Data storage on the Blockchain platform helps the public to track state funds and expenditures, making the contract structure more open. In the election process, blockchain technology is also useful and can make the process of elections more transparent. An significant explanation for corrupt regimes in developing countries is the lack of transparency.
Blockchain technology is experiencing greater growth, and the development of this technology has helped individuals see a better future. It is important to see to what degree the Blockchain solutions can be adopted by developed countries and disadvantaged people to deal with their issues. It’s not only about state initiative, but individuals themselves need to obtain Blockchain education to be informed of the advantages that Blockchain technology may bring to them, and all they need to join Blockchain council-led classes for this.