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How Blockchain Technology Can Serve Emerging Markets

Mina Down
Mina Down
Sep 20, 2018 · 5 min read

Blockchain technology has been said to have the potential to disrupt many industries with low-cost transactions, immutability, and enhanced security. Indeed, many blockchain implementations have been developed, each exhibiting unique features tailored to specific use-cases. One of the most exciting of these use cases is serving so-called emerging markets. In this article, I discuss some of the central challenges of emerging markets and how one African-based crypto startup plans to overcome them.

Emerging Markets

However, the transformation of emerging markets is far from complete. Currently, 90% of the economic activity still happens through traditional outlets. There is also an inherent lack of trust in banks and the use of bank cards in many emerging markets. As result, emerging economies are almost exclusively cash-based. Individuals would rather do transactions at a local merchant or agent than use a bank. Consequently, approximately 40% of the population in emerging markets do not even have bank cards or bank accounts. This population is known as the “underbank” or “unbanked.”

The Challenges of Emerging Markets

Emerging markets must develop economic structures to overcome these challenges. However, the ensure uptake these structures must be compatible with local cultures and daily life. For instance, the local nature of emerging markets means large costly financial infrastructures will not work to bring them into the digital economy. More appropriate are smaller collections of humans and devices building trust and working together in a collaborative manner.

Crowdforce’s Plan to Overcome these Challenges

First, Crowdsource plans to use blockchain to provide an alternative to the banking system in emerging markets. Through the PayForceMobileApp, however, CrowdForce gives local merchants the capacity to be agent banks in their area. These agent banks are incentivized through commissions and can sign up and get started in less than a day by simply funding their wallet with cash that becomes their startup capital.

Second, Local agents will also be able to offer microservices through the app, including utility bill payments, cash in/out accounts, buying and sell cryptocurrency, and crypto-fiat exchanges. The crypto services are especially exciting. The present process of buying cryptocurrency requires an international bank card, which cuts out 70% of the population in emerging markets. The ability to buy cryptocurrencies for local merchants with cash will open up the possibility for massive uptake.

Third, since the CrowdForce platform will also perform important microtasks for local agents. Specific microtasks the app will offer include, market research, retail audits, data verification (businesses, KYC, addresses), image and GPS capture.

Finally, CrowdForce will offer users a crowdfunding service. Conventional crowdfunding platforms charge high transaction fees. For instance, a Kickstarter campaign, would pay up to 9% of the amount raised after including the transfer fees (3–5%) and listing fees (5%). On the CrowdForce platform, there are no listing fees and transfer fees are only 1%.

CrowdForce Technology

In phase two of the project, CrowdForce will record verified agent data hashed function results to the Ethereum blockchain in batches but store actual user data in a blockchain-based storage network like Storj or Filecoin. Verified users will be able to prove their identity within the CrowdForce Platform by signing a message from privately controlled Ethereum address and smart contract integrated to the ecosystem.

Conclusion

Full disclosure: I do not own Crowdforce tokens and have not participated in the ICO. This article is not investment advice. It is just my personal opinion. Please do your own research! frauswif.

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Mina Down

Written by

Mina Down

Writer interested in blockchain projects that will add to the social good

HackerNoon.com

Elijah McClain, George Floyd, Eric Garner, Breonna Taylor, Ahmaud Arbery, Michael Brown, Oscar Grant, Atatiana Jefferson, Tamir Rice, Bettie Jones, Botham Jean

Mina Down

Written by

Mina Down

Writer interested in blockchain projects that will add to the social good

HackerNoon.com

Elijah McClain, George Floyd, Eric Garner, Breonna Taylor, Ahmaud Arbery, Michael Brown, Oscar Grant, Atatiana Jefferson, Tamir Rice, Bettie Jones, Botham Jean

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