Blockchain Revolution: Developing Countries Tap into Digital Opportunities!

Blockchain Revolution: Developing Countries Tap into Digital Opportunities!

Increasing digitalization has reignited the discussion about blockchain technology and its application in many developing countries. The concept of asset tokenization in particular has the potential to fundamentally transform these markets. Loud Crypto.news Asset tokenization involves placing real assets, such as company shares or real estate, on the blockchain. This could lead to faster transfers, fewer middlemen and wider global access.

In many developing countries, paper-based systems for proof of ownership remain widespread. These systems are often slow and vulnerable to manipulation. Corey Billington, CEO of Blubird, emphasizes that these restrictions could allow emerging markets to adopt blockchain technology more quickly. However, many of these countries lack the legal infrastructure to support tokenized assets and on-chain transactions, creating a mismatch between technological capabilities and existing legal frameworks.

Revolutionizing property law

A notable example is a project in a Caribbean developing country that is focused on tokenizing the property registry to address issues such as document forgery and ownership disputes. Billington highlights the need for a national wallet system to allow citizens to manage on-chain property and associated agreements. The aim is to transition from a paper-based system to a digital economy with the help of Distributed Ledger Technology (DLT).

First world countries could also exploit the potential of blockchain technology, but have shown reluctance so far, preferring to wait for proven models. Companies are pushing for registry-level reforms to avoid investing in legacy systems and create future-ready infrastructure. These companies are motivated by problems such as forged documents and legal ambiguities and are investing in local infrastructure.

Benefits for governments and citizens

The benefits of blockchain for governments and citizens are many. A significant improvement could include speeding up processes, reducing costs and increasing transparency. For example, buying a house could be significantly simplified through a government-issued digital wallet, eliminating the need for notaries and extensive documentation.

Privacy and security are also key concerns. Public base blockchains can be equipped with data layers for sensitive information. While there are risks associated with smart contract vulnerabilities and social engineering, multi-signature systems can increase security. Interestingly, recent reports show that governments are open to blockchain technology and want to use it to fight corruption and improve transparency.

In summary, the key to the adoption of blockchain technology in developing countries and beyond lies in increased transparency, anti-corruption efforts and potential cost savings.