Blockchain is a budding technology which represents a fundamental shift from a centralized to a decentralized system. Blockchain has evolved from its association with bitcoin; blockchain has the potential of removing significant layers of complexity from global supply chains. Smart contract concepts will also create opportunities for new services and business models in logistics.
By sharing information on a blockchain-based system, the technology can support collaboration and transparency in the highly fragmented logistics industry. Facilitating greater trust and transparency between supply chain stakeholders, supporting the automation of administrative and commercial processes. Blockchain greatest use lies in global trade, where solutions that reduce supply chain trade barriers can increase global GDP by nearly 5% and global trade by 15%.
Industry adoption, governance of standards, and interoperability will be critical to the success of blockchain.
Additionally, Kenya is also making efforts to lead the way in blockchain adoption in Africa. Since mid-2018, there have been reports of the government looking to enact regulations for cryptocurrency and blockchain technology in the country.
Most recently, a task force on blockchain and artificial intelligence in Kenya submitted a report to the government to consider creating a national digital currency, with Kenya’s central bank in favour of drafting laws to govern initial coin offerings in Kenya.
For those who have spent time in Mombasa, you many have heard of Bangla-Pesa.
Bangla-Pesa is a complementary currency that has become a medium of exchange in the Bangladesh slum in the city of Mombasa. Bangla-Pesa is only accepted only within this particular slum. Bangla-Pesa is a voucher that traders and service providers are using to do business, however, Bangla-Pesa coupons are accepted for many transactions and therefore represent a complementary currency in the slum. For those who live with the slum, Bangla-Pesa operates alongside the normal currency. Bangla-Pesa was created by a Kenyan non-profit foundation empowering marginalized communities to help manage their economic future.
M-Akiba is a retail bond issued by the Kenyan Government via a mobile phone platform. M-Akiba allows users to purchase government bonds in very small amounts, without the need for a bank account.
The blockchain platform allows people to create an account in ten minutes instead of the usual 3 to 21 days and the issuer can receive the funds daily instead of monthly. Its move to a blockchain system should allow for more transparency and trust but also open the platform to international investments.
Since the inception of the project, Kenya has been invited to several international forums and round tables, such as the one in Paris in July 2018 organised by the United Nations Environment Programme (UNEP).
Techno Brain, is using blockchain to support traceability of products made in Kenya, this is as a result of Number Series. Number Series is an identification tool that records in a database the codes assigned to each product created.
Twiga employs blockchain technology to keep track of the transactions carried out by its clients. Using its data, the clients can also assess their ability to access loans and other financial products.
Another blockchain-led start up is the TheBhub, founded by Granville Wafula & Shariff Abdulwalli, who saw “blockchain and artificial intelligence as a way to solve our country’s problems”. TheBhub, founded in January 2018, trains Kenyan developers to create solutions based on blockchain systems.
One of their blockchain projects is Makao. Makao matches real estate demand with construction projects. The project is currently being studied in a government- led incubator. Makao will enable buyers to connect with real estate partners via a blockchain-based platform allowing them to give their opinion on the design of the properties.
The technology will allow payment tracking and access to crowdfunding for the projects with the aim to reduce the number of people living in slums.
Bitsoko is an Android mobile wallet that implements Blockchain technology in a bid to both remove the cost of transferring money between two individuals and to increase access to payment services.
Bitsoko doesn’t just allow bitcoins to be instantly sent around the world at minimal cost but also integrates Blockchain technology into the current mobile money platform in Africa and service providers, allowing access of funds to be sent from the developed world through Bitcoin and received as mobile money.
Check out Bitsoko on our website