Ethiopia’s blockchain deal is a watershed moment – for the technology, and for Africa


Iwa Salami at The Conversation: “At the launch of bitcoin in 2009 the size of the potential of the underlying technology, the blockchain, was not fully appreciated.

What has not been fully exploited is the unique features of blockchain technology that can improve the lives of people and businesses. These include the fact that it is an open source software. This makes its source code legally and freely available to end-users who can use it to create new products and services. Another significant feature is that it is decentralised, democratising the operation of the services built on it. Control of the services built on the blockchain isn’t in the hands of an individual or a single entity but involves all those connected to the network.

In addition, it enables peer to peer interaction between those connected to the network. This is key as it enables parties to transact directly without using intermediaries or third parties. Finally, it has inbuilt security. Data stored on it is immutable and cannot be changed easily. New data can be added only after it is verified by everyone in the network.

Unfortunately, bitcoin, the project that introduced blockchain technology, has hogged the limelight, diverting attention from the technology’s underlying potential benefits….

But this is slowly changing.

A few companies have begun showcasing blockchain capabilities to various African countries. Unlike most other cryptocurrency blockchains which focus on private sector use in developed regions like Europe and North America, their approach has been to target the governments and public institutions in the developing world.

In April the Ethiopian government confirmed that it had signed a deal to create a national database of student and teacher IDs using a decentralised digital identity solution. The deal involves providing IDs for 5 million students across 3,500 schools which will be used to store educational records.

This is the largest blockchain deal ever to be signed by a government and has been making waves in the crypto-asset industry.

I believe that the deal marks a watershed moment for the use of blockchain and the crypto-asset industry, and for African economies because it offers the promise of blockchain being used for real socio-economic change. The deal means that blockchain technology will be used to provide digital identity to millions of Ethiopians. Digital identity – missing in most African countries – is the first step to real financial inclusion, which in turn has been shown to carry a host of benefits….(More)”.