How Blockchain Can Put an End to Poverty

poverty

The blockchain is a technology that can change many economic sectors. It is a disruptive technology that will revolutionize our future. Due to its decentralized nature, it is impossible to stop, even if governments or institutions want to stop it. It can also fight against poverty, which is an international issue.

Access to Financial Services

According to the World Bank, in 2013, there was around 750 million people living with less than $1.90 a day, which represents 10.7% of the world’s population. To reduce poverty, one of the most important factor is the access to a financial insitution. Currently, over 2 billion adults don’t have a banking account. A lot of these people come from developing countries, and mobile payments are replacing most of the financial entities.

On the other hand, Blockchain can overcome many limitations that banks can not control. The blockchain works on a distributed ledger, so there is no need to have a physical location for the blockchain to operate as the banks need. Also, that technology can eliminate the fees the banks are charging its users for the telecom they pay because it is not necessary to have an expensive private system to run it, since it is operating on a distributed network.

Blockchain to Fight Corruption

Corruption is another problem that blockchain technology can resolve. The data on private systems that are mainly used in financial institutions today can be manipulated. However, with a blockchain it is possible to reduce corruption considerably and the manipulation of information because there would be a record of all transactions that occured in the blockchain, so malicious frauds would be easily identified.

Another major international problem is land grabbing, which affects mainly the poorest ones.  It is not rare to see corrupted people confiscating poor people’s land by using malicious methods to get falsified papers. It has a big impact on farmers with small revenues because they are more exposed at risk.

The blockchain’s records can not be changed after is has been recorded, which means the ownership of value is impossible to manipulate. As soon as there is an attempt to tamper the data, everyone can see it on the public ledger. Swedish and Japanese officials are currently experimenting with the blockchain technology for public services.

Ending corruption would be most beneficial for developing countries as they are the ones who suffer the most from this plague.

Poverty is a neverending disease in human societies. Blockchain technology may be able to help combat poverty in the near future. External help will surely be needed as well, but this technology could be a catalyst for the empowerment of the less fortunate.

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