Blockchain is simply a database for storing information. Blockchain technology stores information in large groups called blocks and then uses a decentralized methodology that ensures that everyone who has access to the block can see changes in the database as it occurs.
Therefore uses can see what’s going on as it is happening and can therefore respond promptly.
Blockchain technology has found its use mainly in cryptocurrency and every transaction made is recorded there as this serves as a digital ledger.
The technology is designed in such a way that nobody has sole control over its activities. While this is seen as a welcomed development, others see it as a disruption to norms.
Blockchain in Nigeria has no direct regulations in general however certain rules apply to it.
Also read, Harnessing Blockchain in Africa
As cryptocurrency trade was banned by the Central Bank of Nigeria (CBN), the use of blockchain technology has been simultaneously halted.
However, fully accepting the technology will enhance the transaction processes giving room for transparency and other added benefits such as:
Enhancing International payments and transfer
Blockchain has proven to be a very efficient method of doing international transactions as there are no delays and the risk of losing money is greatly reduced.
Business Growth and Visibility
The technology can find application, especially in fintech, advertising among others. False claims made by advertisers are easily seen through as every information can be seen by everyone and it’s not easily manipulated.
In Fintech, individuals cannot make multiple claims as the technology uniquely eliminates that possibility.
Increased Digital Security
Malicious hackers are everywhere trying to steal money, identity, commit crimes and other vices. The technology has a way of efficiently tracking every individual connected to its block and its activity. These will greatly reduce the vulnerabilities online.
Tracking of products will also be easier and more efficient if done with blockchain technology.
This and more reasons are why the Nigerian government should consider being more open to blockchain technology and all related activities.
About the author
Chibuzor Elizabeth Chijioke a graduate of Abia State University is a Nigerian-based entrepreneur and content writer. She trained as a digital marketer at Innovation Growth Hub. She is committed to teaching people how to apply technology to better their lives and businesses. She spends her leisure reading sci-fi and fantasy novels.
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