Technology
Why mass adoption of Blockchain and Cryptos is still far off
Thursday July 01 2021
Bad news travels fast and far. You have probably heard of the most recent alleged crypto heist that neither involved guns nor sophisticated hacking but rogue18 and 20-year-old operators Raees and Ameer Cajee running a legitimate front – Africrypt, with what is in hindsight, clear ulterior motives.
At a time when blockchain-based platforms, whether they be currencies, exchanges, marketplaces, or tools crafted for specific use cases such as decentralised finance (Defi) are trying to find mainstream adoption, the ‘in-plain-sight’ loss of an estimated trove of 69,000 bitcoin valued at $3.6 billion at the time doesn’t augur well for the industry.
As a technology entrepreneur, I am a voracious reader, seeking knowledge on what underpins current market movements and opportunities, and picking up signals that point to what is next. This search is purposeful and requires a certain intensity that I realise not many can commit to.
Crypto and its parent the blockchain; have seen okay traction across many sectors and markets by early adopters. The journey to mass adoption is however still far off for the following reasons.
If like me you have taken the time to read up and research the technology that promises to transform many industries, you have the benefit of additional knowledge to inform your current engagement with anything blockchain-related.
Many learning resources allow for self-paced study, with webinars and workshops by self-prescribed gurus meant to give interested persons a kick-start. However, overall understanding of the technology and the various user experiences up and above trading is still lacking for the majority of potential users.
Fiat currencies, plastic money, and mobile money, all run on the same baseline. And for each, the chaperones, be they governments, multinational corporations, and other private entities understand that true value is only driven by increased distribution, utility, and top-of-the-rank acceptance.
No one needs a class to understand how cash works at the point of consumption, say when buying goods at a shop. And beyond the tech-speak, blockchain projects sole agenda in the short to medium term should be to increase distribution and acceptance down to the lowest common denominator on the consumer side.
This means smart strategies are needed to borrow from the primitives that have gotten fiat to its current state of dominance and infuse new thinking from the digital age.
It will take boots on the ground to understand the dynamics of each large market that is critical towards overall success and it is refreshing to see teams on the ground, especially in Africa trying to figure this out.
Njihia is the head of business and partnerships at Sure Corporation | www.mbuguanjihia.com | @mbuguanjihia