As the world navigates the ever-evolving landscape of Web3, it’s easy to get caught up in the hype and speculation surrounding this emerging technology. Many claim that Web3 is nothing more than a playground for millionaires to be made overnight, with memes trumping actual utility. Long-term builders and dreamers can quickly lose faith in the industry’s future, but amidst the noise, there are bright spots.
Blockchain and Crypto: A Force for Good
Blockchain and crypto technologies are genuinely benefiting humanity, particularly in emerging markets. Web3 technology is helping to bridge the gap between the underserved and underbanked populations, combating deficiencies in modern traditional institutions in finance and beyond.
The investment community needs to take notice of this trend and shift its focus towards supporting builders who are committed to driving change.
Emerging Markets Dominate Adoption Rankings
According to a report by the World Bank, an estimated 1.4 billion people worldwide remain unbanked as of 2024. Decentralization is fundamentally about addressing uneven value distribution, and the industry needs to support more builders who are committed to driving change.
Africa is one of the regions leading the charge in crypto adoption, mainly due to limited access to banking services. Even in 2021, around 300 million adults in Sub-Saharan Africa couldn’t access essential banking services. This lack of access severely limits people’s ability to conduct everyday transactions and save/invest – let alone run a business.
Crypto is changing this narrative by providing an accessible and practical solution for the unbanked population.
Chainalysis’ 2024 Global Crypto Adoption Index
Developing nations dominate the rankings in Chainalysis’ 2024 Global Crypto Adoption Index, with countries such as India, Indonesia, and Nigeria leading. As of 2023, Sub-Saharan Africa had the highest Bitcoin adoption rate in the world, with Nigeria ranking second globally.
Practical Use Cases in Emerging Markets
In emerging markets, we are witnessing the functional use of crypto rather than just its use case as a speculative asset. Local entrepreneurs with first-hand insights into local problems drive meaningful change, and new technological innovations fit for purpose.
Initiatives like CARE’s pilot programs in Kenya and Ecuador demonstrate how crypto can provide access to essential goods and services while fostering economic recovery from the COVID-19 pandemic.
Non-Fungible Tokens (NFTs) as Cross-Border Fundraising Vehicles
Acute governance problems can also mean adoption is growing by necessity. NFTs have become accepted cross-border fundraising vehicles, providing a secure and efficient way for entrepreneurs to raise capital.
Case Study: Raipur’s Blockchain-Based Solution
The Indian city of Raipur recently put real estate records on the blockchain with an innovative encryption startup called Airchains. This blockchain-based solution aims to prevent forgery and reduce processing time from a month to three days.
Fund Adoption, Not Shiny New Things
While capital flows into crypto projects in emerging markets are becoming more significant, they still fall short compared to the funding available for projects in well-developed nations.
In 2023, developed nations, particularly the United States, led with approximately $1.975 billion invested in Q3 alone, with US-based companies accounting for 34.5% of all crypto VC funding.
Recognition of Potential in Emerging Markets
Lately, the recognition of the potential in emerging markets has grown. Crypto investment should now pay attention to where mass adoption is happening. Crypto is a functional tool, rather than a speculative asset, in emerging markets.
Conclusion
As we navigate the ever-evolving landscape of Web3, it’s essential to recognize the genuine benefits that blockchain and crypto technologies are bringing to humanity, particularly in emerging markets. The investment community needs to shift its focus towards supporting builders who are committed to driving change and providing accessible solutions for the unbanked population.
About the Author
Ayush Ranjan is the co-founder and CEO of Huddle01.
Disclaimer
This article is for general information purposes only and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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