Cardano is regarded as one of the most innovative blockchain platforms in the world. Unlike other cryptocurrencies, such as Bitcoin and Ethereum, Cardano looks at solving real-world use cases-particularly in underdeveloped nations. With it being more than just a digital currency, Cardano’s mission is to create an inclusive financial system by solving some of the most pressing challenges of developing economies. From improving financial inclusion to solving identity-related problems, what Cardano does in these developing regions can actually ensure that change will last.
However, how does Cardano help developing countries, and why should you care? Let’s understand how this blockchain platform is creating waves in regions where, more often than not, the traditional system of finance lacks in their role.
Financial Inclusion With Cardano
One of the major ways Cardano is influencing developing countries is in the field of financial inclusions. According to the World Bank, an estimated number of 1.4 billion people around the world have no access to a functional bank account. In developing nations, the dearth of access to financial services drives people toward remaining poor. Without access to a bank account, people can’t save money in a secure way or retrieve credit. In many instances, they cannot even receive payment reliably. This situation makes it difficult to make plans for a better future or to embrace opportunities that may help in improving financial status.
Cardano develops that by trying to give alternatives to traditional banking systems. With Cardano’s blockchain technology, people are able to store and move value securely, with no need for an account. This comes in very important in countries where banks are scarce, untrustworthy, or just too expensive to use. By paving ways for a truly decentralized financial system, Cardano empowers people in most parts of the world to take active control of their financial lives, regardless of their geographical location.
Cardano is also collaborating with governments and organizations of different countries to develop a blockchain-based financial infrastructure that aims to provide millions of people with access to financial services, helping them move beyond cash-based economies into the digital era. For many, this might be the first step to financial security and upward mobility.
Solving the Identity Problem with Atala PRISM
Another big challenge faces the developing world: the absence of formal identification systems. People, especially in large parts of the country, cannot prove who they are and access services like healthcare and education or even vote. As a matter of fact, it is quite difficult to get almost all the basic rights. It is practically impossible to open a bank account, apply for a job, or be part of the formal economy without a proper ID.
Solutions such as Cardano’s Atala PRISM provide that particular need on the blockchain. Atala PRISM provides individuals with a secure, tamper-proof digital identity truly belonging to them. Whereas traditional IDs are issued and retained by some form of centralized authority, blockchain-based identities mean ownership resides with the subject themselves who can manage such information. In that sense, it gives them more control over their personal data and an easy way to prove one’s identity when required.
In Ethiopia, Cardano is currently working with the government to introduce a national digital identity system based on Atala PRISM. This means the system will provide verifiable digital identities to millions of students in this country to track educational achievements and other important records. The intention is to equip students with a portable ID throughout their lives and unlock doors into the future.
This isn’t just an issue of giving people IDs, it’s actually a question of the bedrock foundation for economic participation. A digital identity allows people to be privy to financial services, to apply for jobs, and to access a plethora of government programs, all very important for driving forward economic growth. In solving the identity problem, Cardano is allowing millions of people who were otherwise without voice or presence in formal systems to realize their full potential.
Digital Payments
Most developing countries lack the traditional system of payment, but even when they do, they are inefficient. Cash remains the dominant legal tender in these countries, which is risky to handle and not as convenient. Large sums of cash that an individual carries on or with themselves expose them to theft, while sending money across long distances often requires sending remittances, which are usually expensive and slow.
Cardano also represents a faster, cheaper, and more secure alternative. Using its blockchain technology, individuals can send and receive digital payments without the use of intermediaries like banks or money transfer services. That makes it particularly worth its weight in gold in countries where the traditional structures are either unreachable or untrustworthy.
Examples of this can be seen with some countries in Africa, whose inhabitants depend almost fully on remittances as a source of income. However, such international money transfers sometimes come at a great cost and significantly cut the actual amount that is taken to the recipient. Cardano’s low-fee, borderless payment system allows one to send money directly to loved ones with minimal cost and delay. This may reduce the amount of remittances that keep families alive.
Furthermore, with Cardano, one will also be able to make use of digital payments in everyday transactions, whereby individuals will find it much easier to pay for goods and services. The more businesses that accept cryptocurrency, the less need there would be for hard cash, whereby, with that, financial interactions among all parties will become easier and safer.
Agricultural Solutions With Cardano At The Helm
Agriculture is the backbone of many developing economies and most especially in Africa, where all millions of people depend on farming for livelihood. In as much as farming is very important to them, it also faces one major challenge-a lack of transparency in its dealings and traceability. Many farmers face difficulties in proving the quality and origin of their products, hence limiting their access to markets and prices.
That is where Cardano’s blockchain technology comes in handy: tracing the agricultural products right from farm to table. Smart contracts will, therefore, enable farmers to create a digital record of crops with all the vital information regarding their cultivation and growth. The information then gets recorded on the blockchain, which should be accessible and verifiable by buyers, distributors, and consumers.
With Cardano, all this becomes more transparent, and farmers will easily win the trust of their customers for better prices and greater market access. For example, coffee farmers in Ethiopia would use the Cardano blockchain to prove the origin and quality of their beans, thereby enabling them to sell those beans to international buyers who pay a premium for such goods that are ethically sourced.
Decentralized Solutions for Governance and Voting
A large fraction of the governance and voting systems in most developing countries are prone to corruption and inefficiency and the effects of such can impair people’s faith in public institutions, eventually making them skeptical towards exercising their democratic right to vote. Cardano’s blockchain technology offers a solution through a transparent, tamper-proof system for voting and governance.
A blockchain voting system allows for secure and transparent votes, it means no manipulation of the results is possible. This can dramatically affect the ways of governance in some countries where fraud in elections and suppression of voters are part of the culture. In that respect, Cardano’s technology may serve to reinforce democratic processes by guaranteeing the integrity of elections and helping to build trust in public institutions.
Cardano’s governance model has a relation not only to national elections. On-chain, projects and organizations have the facility for decentralized governance, too. Cardano allows its community to propose and vote on initiatives that impact the development of the blockchain through its Project Catalyst. This form of decentralization in decision-making ensures the platform evolves in a manner representative of the needs and interests of its users, rather than being at the whim of any singular, centralized authority.
Conclusion
The work Cardano is doing in developing countries stands to be a powerful use case of blockchain technology used for much more than financial gain. Tackling some of the far more fundamental challenges-like financial inclusion, verification of identity, and governance-means Cardano is contributing to an equitable and inclusive world.
While the platform is still very much in evolution, its impact in places like Africa is already being felt. As more and more projects and partnerships are announced, Cardano can be at the heart of what the future of emerging economies could look like. The same blockchain technology could make life-altering opportunities for millions of people feasible and introduce a new era of financial freedom, coupled with transparency and trust.
About The Author
Hello guys! I’m Blockchain Mouthpiece an experienced cryptocurrency writer who has been in the game since 2018, crafting the best articles which are proven to be both insightful and engaging to the satisfaction of users. My aim is to bring the complexities of cryptocurrency, Blockchain technology, and Web 3, to the barest minimum, to make adoption more seamless and fast among both seasoned and new users alike.
