Blockchain Telecom: How It Can Help the Economy of Developing Countries

The blockchain telecom market was worth $151.9 million in 2019 and it’s projected to grow by 348%, hitting a milestone of $677.7 million by 2025. The emergence and exponential growth of the market is proof that blockchain technology is set to disrupt the world’s economy and all the established industries, one by one.

There are two ways one can react to this: by speculating on what the market can offer as it continues to grow astronomically, or finding ways to activate the benefits of the technology and key into the economic impacts such giant strides have for everyone.

Africa is a great example of the latter. The continent is at the forefront of blockchain industrial disruptions and is currently a major investment destination for emerging blockchain internet providers. But what exactly does Africa and the world at large stand to benefit from the blockchain telecom industry? Continue reading to find out.

What is Blockchain Telecom?

Blockchain telecom represents the digital revolution. The provision of internet services and connectivity across networks using blockchain technology improves traditional telecom services in terms of security, speed, cost, privacy, and traceability.

In contrast to the traditional telecom system, blockchain internet companies decentralize the internet and record data on digital public ledgers instead of conventional private databases.

While this builds transparency, it also offers users maximum privacy. For instance, one of the few players in the industry, 3air, uses the Atala PRISM Digital Identity solution to enable users to manage how and who can access their private information on the platform.

Other companies in the field, such as Dent, Telcoin, and World Mobile Token, are also offering proprietary solutions to some of the common problems of traditional telecom. Although the blockchain telecom market is in its infancy, it’s already en route to offering the fastest internet service in Africa. For instance, 3air is championing this drive with the K3 Lastmile technology, a broadband infrastructure that can provide an internet speed of 1 Gbps.

The Lastmile technology, first deployed in Sierra Leone in 2019, has been successful and compared to what is currently available in Africa, sets the continent to become a league of its own. Moreover, through the Cardano blockchain, users will access 3air’s broadband-based internet services hassle-free and at a pocket-friendly cost.  

How Blockchain Telecom Can Impact the Economy

How Blockchain Telecom Can Impact the Economy of Developing Countries

Blockchain telecom has direct impacts on key sectors of Africa’s economy, especially because stable internet connectivity is paramount in today’s world. Here are practical ways developing countries can benefit from the service offerings of blockchain internet providers: 

FinTech and Banking

About 57% of the adult population in Africa lacks any form of bank accounts. That makes Africa a viable destination for over 576 Financial Technology (FinTech) startups headquartered on the continent, whose goal is to promote accessible payment services, financial inclusion, and convenient alternatives to traditional banking.

However, the major limitation to the growth and adoption of FinTech in developing countries is the lack of sustainable and affordable internet access. Even with Africa’s impressive mobile phone market growth, FinTech companies are having a hard time onboarding customers due to epileptic