A Beginner's Guide to BlockChain in Tanzania : Understanding the Basics

Hello dear readers, happy Sunday.

Part of being a computer science student is immersing oneself in the vast, endless pool of knowledge that the technology sector entails and trying to get acquainted with all the latest tech. With that being said, let us have a look at today's tech marvel that has been rising in popularity around the world in recent years: Blockchain.

What is Blockchain Technology?

Blockchain is a decentralized and secure system for storing and sharing data and the reason it has taken the world by storm is due to its potential to transform a wide range of industries. Thankfully, our nation is no exception to this list, and the use of blockchain technology is becoming increasingly important in sectors such as Finance, Agriculture, and healthcare. The use of blockchain in Tanzania has the potential to enhance transparency, security, and efficiency within mentioned sectors ultimately leading to economic growth and development.

How does Blockchain Technology work?

The basics of how blockchain operates are that it is a database that is distributed across a network of computers that work together to validate and store transactions or data.

In a blockchain system, transactions or data are grouped into "blocks" and added to a chain of existing blocks. Each block contains a unique code that verifies its contents ensuring that it cannot be changed. Once a block is added to the chain, it cannot be changed or deleted without permission from the network.

How is Blockchain being used around the world?

As stated earlier blockchain technology cuts across several industries but the simplest ones I can explain to my ability are as follows:

• Cryptocurrency:

Cryptocurrencies such as Bitcoin and Ethereum are known to use blockchain technology to securely and transparently record transactions and prevent double-spending.

• Supply Chain Management:

Ever wondered about the traceability of products such as food, medications, etc? Yeah, blockchain is involved with this. The technology allows for real-time tracing of goods and ensures that they are sourced ethically and sustainably.

What is the current state of Blockchain in Tanzania?

Blockchain technology is still in its early stages of adoption in Tanzania, however, there is growing interest in its potential to improve transparency, security, and efficiency in various sectors.

One area where blockchain is being explored is Finance. Companies like JUMO and BitPesa use blockchain to facilitate cross-border payments, thus providing a cheaper and more convenient alternative to traditional banking.

Another area where blockchain is being explored is in agriculture, where it can be used to verify the authenticity of agricultural products, improving trust and traceability in the supply chain. In 2018, the World Food Programme launched a pilot program in Tanzania using blockchain to distribute food vouchers to refugees, increasing efficiency and reducing fraud.

The Bank Of Tanzania (BOT) has also announced plans to explore the potential of blockchain in areas like payment systems, credit reference bureaus, and digital identities.

A major hat off to my country for achieving this milestone. I strongly believe that it is likely to witness an increased adoption and integration of blockchain technology in the coming years.

Challenges facing Blockchain in Tanzania?

Every journey has its bumps and obstacles and there is no exception to this one because, despite the potential benefits of blockchain technology in Tanzania, there are several challenges facing its adoption such as :

• Lack of Awareness and Education:

I consider myself a living testament to this point. Having skimmed through my university syllabus a few days before, I was baffled to not find the inclusion of Blockchain in the classroom. I can imagine I am not the only one and that the public and businesses face the same conflict. Many people are still unfamiliar with the technology and its potential applications, making it difficult to build a supportive ecosystem.

• Limited Infrastructure:

High-speed internet and smartphones are not a luxury that all can afford. The limitations of these technological infrastructures which are necessary for both building and using blockchain applications limit the extent to which the technology can thrive in the nation.

• Lack Of funding:

The cost of developing and implementing blockchain-based solutions can be high, making it difficult for startups and small businesses to enter the market. This can limit the development of new use cases and slow the overall adoption of blockchain technology.

For how come we have come, I am proud of my nation. And for how far we can go, I am ecstatic to witness and become a part of the solutions, groups, and organizations that will help to propel the nation forward in this sector.

Many thanks to you for reading, until next time...

#TanzanianInTech