Nigerian Blockchain Landscape Under Fire for Lack of Originality Amidst Excessive Excitement, as Asserted by Senator Ihenyen
In the ever-evolving world of technology, Nigeria stands as a rising player in the adoption and development of blockchain and cryptocurrency. However, the landscape is not without its challenges.
For many, the entry point into the crypto world is through memecoins, digital currencies like $DAVIDO, which have gained popularity due to their affordability and the allure of FOMO (fear of missing out). Yet, this trend, often filled with numerous scam coins, supports negative viewpoints about crypto and diminishes the importance of blockchain as a disruptive technology.
The United Nations published a report in 2023, estimating that 500,000 people die from fake drugs each year in sub-Saharan Africa. This stark reality underscores the potential of blockchain to address real-world problems, particularly in the logistics and finance sectors. However, the current focus on hype, as highlighted by Senator Ihenyen, Lead Partner and Head of Blockchain at Infusion Lawyers, lacks substance.
Senator Ihenyen emphasised that while blockchain has the potential to revolutionise these sectors, the current focus on hype is not conducive to sustainable growth. This sentiment is echoed by JPMorgan Chase & Co CEO Jamie Dimon, who called Bitcoin a fraud with no hope, and American billionaire Warren Buffett, who described Bitcoin as 'rat poison squared' and asserted that it has no unique value.
In Nigeria, the focus on hype has extended to the political sphere, with politicians holding the decision to use blockchain to conduct elections. However, the lack of transparency in blockchain-powered elections has faced criticism, with concerns about phishing scams and foreign interference.
To address these issues, it is crucial for those launching memecoins to be open and transparent about the associated risks. Chimezie Chuta, Founder of Blockchain Nigeria User Group (BNUG), suggests that blockchain technology could be tested at lower levels, such as elections for student unions or the Nigerian Bar Association (NBA), before being implemented on a national scale.
Notable groups involved in developing blockchain-based solutions for logistics and electoral processes in Nigeria include logistics tech companies like ShipAfrica, Trackbudi, Coconut Africa, and Sturnic; blockchain development companies such as Vention, Blockchain Lab Nigeria, and SkyTechNG Integrated Services; developer communities and events like the Sui Lagos Hacker House organized by Semicolon and the Sui Foundation; and specialized blockchain developers employed by firms like Koloxo West Africa.
Moreover, the Nigerian Securities Exchange Commission has weighed in, stating that memecoins like $DAVIDO lack fundamental value. If adoption of crypto is to go mainstream, it cannot continue to risk short-term adoption for long-term adoption. Removing the notion that people can become overnight millionaires through memecoins could manage people's expectations.
A notable example of blockchain implementation can be seen in West Virginia, US, which used a blockchain-based mobile voting application for citizens who were out of the country during elections. As Nigeria continues to navigate the complexities of blockchain and cryptocurrency, it is essential to strike a balance between innovation and responsible adoption.
