LIMITING FACTORS OF BLOCKCHAIN TECHNOLOGY IN DEVELOPING COUNTRIES.
Blockchain is a growing list of records, called blocks, which are linked using cryptography, for uses as a distributed ledgers, data sharing, immutable data backup, a blockchain technology is typically managed by a peer to peer network collecting adhering to a protocol for internode communication and validating new block, which has been a great means of solution to a lots of problem around the world, but shows no outline of existing in developing countries as a result of the key factors listed below:
®The public lack the purpose behind the blockchain technology.
®Inadequate internet available.
®High level of illiteracy.
®Porous infrastructural base.
®Government attitude towards policy implementation.
®Low standard of living.
®wrong attitude to technology.
THE PUBLIC LACK THE PURPOSE BEHIND THE BLOCKCHAIN TECHNOLOGY
This is the major problem facing developing countries, they have no idea about what this technology is attempting to solve, what the story is behind the technology, doubting if the technology can truly solve the problems that exist or if the solution proposing does actually makes sense, these are some concerns making it so difficult to adopt the Blockchain technology as a means of solution to problems such as voters fraud, weapons tracking, Tax regulation and compliance etc.
INADEQUATE INTERNET AVAILABLE
Blockchain without an inadequate internet available is as useless as a vehicle without fuel. Here comes the trade-off the need to balance the situation. We wish to promote electronic transactions but physical money hold equal significance in case of internet failure. Inadequate internet availability or different network speeds in varied location is a key factor that affects blockchain technology adoption in developing countries. The remote place with slow internet may find it difficult to adopt this tech.
HIGH LEVEL OF ILLITERACY
A lot of developing countries are not educated, computer literacy minded and have no knowledge of the internet. Which can make them not fully in charge of their digital assets, thereby creating difficulties in their path to acquire wealth.
In a recent survey (international NGOs which aims to alleviate poverty), it was stated that the top 1% individual in the world own 82% of the total wealth. Now if blockchain is set as the top priority to make wealth, it will obviously benefit the educated ones who have 24/7 internet access and own efficient electronic devices. These people aren’t poor, and can take full advantage of this tech. This again create a difference and affects adoption.
POROUS INFRASTRUCTURAL BASE
The current infrastructure base in developing countries is grossly inadequate in terms of capacity and quality, and not capable of catering for technology sector in the country. Research shows that billions of dollars have been shelled out on Blockchain technology in the developed countries for it sustainability. As a result of numerous challenges facing the developing countries it will be a huge problem to adopt Blockchain technology.
GOVERNMENT ATTITUDE TOWARDS POLICY IMPLEMENTATION
Some of these developing countries had had several national development plans that government shows no interest of implementation. Nigeria case as perfect example: Her first National Development Plan (1962-68), was formally launched in 1962. The Second National Development Plan (1970-74) was launched when Nigeria’s newly acquired the status of a major petroleum producing country. The Third National Development Plan (1975-80) was launched at the height of the oil boom. The Fourth National Development Plan (1981-85) coincided with the inception of a global economic recession which sparked declining foreign exchange earnings, balance of payment disequilibrium and unemployment in the Nigerian economy. As a result, the structural adjustment programme (SAP) was adopted in 1986, as an alternative framework for addressing the weaknesses and ineffectiveness of previous development planning efforts. But all these development plans, including the economic transformation agenda, otherwise known as Nigeria Vision 20: 2020 suffered shipwreck because of implementation gap. Generally, lack of adequate implementation on the part of our leadership has been the bane of Nigeria’s technological growth.
LOW STANDARDS OF LIVING
Many developing countries lack the necessities of life, comfort and luxuries which a person is accustomed to enjoy. As a result of lack of adequate industry in a particular area, lack of jobs insufficient health care services, lack of public transportation, lack of food or water, government oppression and many more… All this will limit the growth of Blockchain technology in developing countries. Basics human needs has to be provided before technology development.
WRONG ATTITUDE TO TECHNOLOGY
Technology by itself does nothing, people who use the technology and bad attitude towards it establishes the failure of procedures for transfer of technology. Many developing countries suffer from the lack of the productivity of labour which is one of the main factors of the economic growth. The lack of the productivity, which can be seen as unskilled labour force, is the most important reason that limits the growth of Blockchain technology. Many developing countries are not ready for such a transfer of technology. Just transferring technology without skilled human resources to ensure its sustainability, means wastage of resources.