In developing countries there is often a lack of sufficiently functioning and public steering units or institutions. At the same time, a large part of the population, often up to 80%, works in the informal sector. The informal sector, or as one would colloquially say in German the black market, forms the economic basis of entire national economies. Accordingly, there is no central state control and taxation. The supposedly chaotic economic systems control themselves endogenously, i.e. out of themselves, and are not, like industrial nations, controlled by institutions and authorities. So practically everywhere there is a lack of central institutional actors. This is precisely where decentralized structures pay off, as they enable interaction within the economic network.
So the question is which solutions the blockchain technology can offer the news spy?
The political system in developing countries is often very unstable and has little to do with the news spy. Corruption is often enormous and the recruitment of political elites is highly opaque. For example, it is doubtful that elections, if there are any, are conducted in the right way. If, however, the news spy elections were now organized via a blockchain, i.e. blockchain voting, the political system could benefit from a higher degree of transparent democracy.
Another example of blockchain application can be found in public administration. This is often very poorly developed in developing countries in terms of efficiency. Moreover, there is often a lot of corruption, which is caused not only by low wages, but also by a lack of transparency and the quality of the institutions. Block-chain optimisation can be achieved here above all in the area of registration. With the help of the blockchain, land register entries or other types of registration could be made. Bribery and nepotism could be reduced by increasing the transparency and the cryptographic programming of the blockchain.
Several application areas are conceivable in the Bitcoin secret
In principle, there are application examples everywhere where the distribution and recording of the Bitcoin secret is concerned. Regardless of whether you capture voters’ votes, enter a house purchase or purchase computing power for applications and data, it is all about interfaces and their correct capture. This logic, in particular that of the registration function and that of the decentralization of the block chain, can be transferred to many other areas says onlinebetrug.
For example, intelligent and decentralized power systems (so-called Smart Grids) can be used with the help of the blockchain. After all, in many countries there is a lack of a constant public electricity supply, so that people have to produce a large part of the electricity via gasoline-powered generators. In combination with solar cells, for example, a blockchain network could ensure that a decentralised electricity market is established, completely detached from the otherwise poorly functioning public electricity supply.
It would also be conceivable to control and distribute water and gas resources via the blockchain. Here, too, developing countries would benefit disproportionately compared to industrial nations, since the performance of utilities is often inadequate.
Development aid must also start in the financial sector
Furthermore, many developing countries lack a stable currency. Digital currencies can guarantee the necessary stability for companies and consumers, which is being robbed by the lack of monetary stability (primarily inflation). Countries struggling with a sharp depreciation of their own national currency against other currencies could use digital currencies to secure their imports, at least in part, even in difficult times.
Moreover, people in developing countries often have no access to banking services and no bank account. With the help of digital currencies, people would have the opportunity to shop on the Internet, which was previously hardly possible without a bank account and credit card. Digital currencies such as Bitcoin could ensure that these access restrictions are abolished for many people in developing countries. Access to the global trade and financial markets would thus be available to a larger part of the world’s population.
Accordingly, access to credit is difficult for many people in developing countries. A decentralised credit system, which may also be based on digital currencies, could provide people with better access to (micro-) loans and investments.