The State of Web3.0 in Nigeria

The term web3 suggests that there was a web1, then a web2 and now a web3. This all started in 1994 with the introduction of web1. This was a read only content and was not interactable.

In 2004, web2.0 came into the picture. It was more interactive because of development in web tech like JavaScript, HTML5 and CSS3. This allowed YouTube, Facebook, wikipedia to be created. Web2.0 had a problem–there was lack of data privacy. Every personal information about a person was needed in web2.0 and there were concerns about this–cyber attacks, kidnaps etc.

But soon, web3 came around and with that we experienced the next step in the evolution of the internet, allowing users to process data using Artificial intelligence (Al) and Blockchain technology.

Web3 has 4 key features and they are:

• Decentralization: it has no central controlling authority

• Trustful and permissionless: you can interact with the interface without the need of an intermediary or a governing body. No need accepting cookies

• Artificial intelligence and Machine learning: computers will be able to understand information the same way that humans do. For example, computer will see “I love Nigeria” and “I♥️ Nigeria” as the same information.

• Connectivity and Ubiquity: internet will be available to anyone, anywhere, anytime.

Nigeria is one of Africa’s big adopters of web3 and has carried the limelight in Africa for sometime alongside Kenya and South Africa. In 2021, a survey revealed that Nigeria experienced a 2467% hike in crypto traders. That is massive. This became highly competitive and threatening to the Nigerian government and spurred them to ban digital currency as a financial product in February, 2021.

A saying goes that “if you can’t beat them, join them.” The government seeing that they couldn’t beat or entirely stop the use of digital currencies decided to establish their own Central Bank Digital Currency (CBDC). This was termed e-naira. This performed very poorly and the application was taken down in playstore app.

However, the federal government through the National Information Technology Development Agency (NITDA) drafted the national Blockchain adoption strategy in 2020. The aim was to drive the adoption of web3 in Nigeria in a way that supports efficiency, transparency and productivity. The strategy was approved on May 3, 2023. This strategy would provide regulatory oversight by the government. This is kind of an irony because web3 thrives on decentralization–that is, no governing body. Regulation by the government would defeat the whole concept of web3. However, the regulation was necessary to check make scammers and fraudsters who would want to leverage on web3 and steal funds. As part of the adoption, Nigeria also signed a deal with Binance to create a crypto city here in Nigeria.

As time went on, it was revealed that not many people are aware of the government regulation concerning web3 adoption. The adoption of web3 became far greater than what the government would only approve. Proper web3 education was needed. This would entail city to city campaigns and conferences, online classes and twitter spaces with the sole purpose of educating the public on web3.

One of the web3 organizations founded in Nigeria, Women in DeFi (WID) by Sarah Idaghosa organizes a city to city conference termed Codes, Charts and Cocktail (CCC). The aim of the conference is web3 education and the benefits it offers to the general public and opportunities you can find. In my city, Enugu, a handful of people are unaware of web3.0. Organizing such conferences with key speakers experienced in web3 will drive the adoption in my city and the country at large. University and secondary school outreaches that preach web3 and encourage young people to get into tech will also drive web3 adoption.

The path to web3 is not without obstacles. Because of the use of artificial intelligence and smart contracts, it’s easy for scammers and hackers to manipulate the system and siphon funds to their account or wallet. This is something we refer to as rug pull. This would be done with the hacker remaining anonymous since data is private. No matter how good an investment is, investors are big on securing their funds and if there is little security, they’d probably not throw in their money. This is where proper knowledge of web3 would be an advantage, so that users would be able to identify scam projects before they put in their money.

Despite the obstacles, web3 adoption continues to be in the rise in Nigeria as many young people are taking that route to financial freedom. Several web3 companies take their root from Nigeria. These are the real cases of web3 adoption in Nigeria. Some of these companies are:

• Cassava Network: a web3.0 platform that is keen on driving web3 adoption in Africa. They are currently building an NFT platform in partnership with boomplay and working with stars like Burna boy, Davido, Wizkid and helping them create NFTs that keep them close to their fans.

• Hashgreed: founded in 2021 and is Afirca’s first NFT market place.

• Stakefair: founded in 2021, it is a decentralized finance company that is expected to disrupt the real money gaming industry.

• DABA: founded in 2019, it is an online platform that teach people how to leverage Blockchain and digital products to gain financial freedom.

• Jamborrow: founded in 2018, it is a business-to-business (B2B) AI and Blockchain fintech platform focused on financial inclusion and empower the grassroot.

• Scorfam: a play-to-earn and NFT based sports gaming platform. It was founded in 2020.

There are a whole lot more that take their roots from Nigeria. The adoption of web3 in Nigeria continues to grow and in the nearest future, it will contribute largely to the nation’s economy.

According to world bank, there are about 350 million unbanked adults in the sub-saharan Africa. In Nigeria alone, there about 154.28 million people who subscribe to the internet. That is more than half of the entire population. This means that a lot of the unbanked would be banked. With a mobile phone and an internet connection, one can have access to financial services.

Web3 holds much benefits for Nigeria and one of it is access to financial services. Most farmers in remote areas have brilliant ideas but no capital. Many of our youths have tech ideas that can revolutionize Nigeria but no funds. Those who are driven by purpose most times take to the banks to take loans to pursue their ideas and dreams but this is complicated by the fact that access to loans can be a very rigorous process. However, through the use of web3 and Decentralized finance (DeFi), lending and borrowing platforms can be utilized to provide funds to individuals at a faster rate.

Also investment processes that require a lot of information and is time consuming would only take minutes using web3 platforms. This would fuel prosperity across the nation.

Web3.0 will also solve the problem of delayed transaction or transaction failures. In June 12, 2023, a report was written by Vanguard news. It stated that there have increasing complaints by users of contemporary banks over transaction failures and delay in reversal of failed transactions. This is devastating for business owners and companies who must make payments before goods are delivered. It could lead to lack of trust and customer loss. This never happens in web3 platforms. In web3, transactions are done seamlessly and within seconds. Because of the incorporation of smart contracts that work on the “if this, then that” principle, transactions are able to get to the receiver in minutes. This will facilitate business growth, create room for trust and drive the economy upward and forward.

Conclusion
As web3.0 continues to revolutionize Nigeria starting from the tech industry, more plans for incorporation in other sectors is necessary. This would require more web3.0 education. It’s obvious that Nigeria’s economy needs the touch of web3 to get out of the rat race we face in our financial systems.