As we navigate the ever-changing landscape of Web3, it’s easy to get caught up in the hype and speculation surrounding this new era of blockchain technology. Many claim that Web3 is little more than a playground for millionaires, where memes reign supreme over actual utility. However, beneath the surface lies a more profound reality – one that has the potential to transform the lives of billions around the world.
A World in Need
According to the World Bank, an estimated 1.4 billion people worldwide remain unbanked as of 2024. This staggering figure highlights the need for a fundamental shift in how we approach finance and commerce. Decentralization is not just about creating a new way of doing things; it’s about addressing the uneven value distribution that has long plagued our societies.
The Emergence of Crypto Adoption
Africa, in particular, has been at the forefront of crypto adoption, largely due to the limited access to banking services. As recently as 2021, around 300 million adults in Sub-Saharan Africa couldn’t access essential banking services. This lack of access not only restricts people’s ability to conduct everyday transactions but also prevents them from saving and investing – let alone running a business.
However, crypto is changing this narrative. According to Chainalysis’ 2024 Global Crypto Adoption Index, developing nations dominate the rankings, with countries such as India, Indonesia, and Nigeria leading the charge.
The Power of Functionality
In emerging markets, we’re 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 are driving meaningful change, and new technological innovations are being developed to fit their needs.
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 have become accepted cross-border fundraising vehicles.
Adoption by Necessity
Acute governance problems can also mean adoption is growing by necessity. In developed countries, there would typically be an inquiry to consider the issue. However, in regions like Sub-Saharan Africa, where challenges are often more pressing, innovation and adoption are happening rapidly.
Recent examples include:
- Cardano founder predicts Bitcoin DeFi will dominate crypto within 3 years: This prediction highlights the growing importance of decentralized finance (DeFi) in the Web3 ecosystem.
- Indian city puts real estate records on blockchain: 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.
A Shift in Focus
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.
However, recognition of the potential in emerging markets has grown, and 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
The hidden strengths of Web3 lie not just in its power to mint millionaires but also in its ability to drive meaningful change and provide access to essential goods and services for billions around the world. As we move forward in this new era of blockchain technology, it’s essential that we focus on where mass adoption is happening – emerging markets.
By supporting more builders who are committed to driving change and investing in projects that have a functional use case, we can unlock the true potential of Web3 and create a brighter future for all.
About the Author
Ayush Ranjan is the co-founder and CEO of Huddle01. His expertise lies at the intersection of blockchain technology, finance, and emerging markets.
Disclaimer
This article is for general information purposes only 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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