(By guest writer Michael Kordvani) Most people have heard of “bitcoin” currency by now. It’s a digital currency that can legitimately be used to make online purchases or to transfer money. The entire system is built on a type of underlying technology, the blockchain. Basically, that’s an online database. It is private, secure and believed to be hack-proof. Blockchain offers more than simply transferring money. It can also store information permanently and securely. IT personnel and economists who work in the developing world are afforded a whole new opportunity because of blockchain. For example, it is now possible for a poor farmer in an underdeveloped nation to store documents on the web, so he can prove he owns the farmland.
Blockchain app developers have an important role in helping solve problems, improving existing instruments and developing new ones. One of the primary weaknesses blockchain technology can address is that of the financial institution and inclusion. The problem has been with their need to restrict corruption, deception and many uncertainties. Blockchain may be just used in the future to empower individuals directly and lessen irregularities.
Underdeveloped Countries and Weak Institutions
One of the major crises underdeveloped countries face is weak institutions. This is often the primary reason development programs cannot deliver the outcomes desired. Poor regions are more likely to experience corruption because of the lack of law enforcement. Rural areas are in general more prone to being corrupt.
There is also a lack of social trust in underdeveloped regions. Social trust is determined by the reliability of a legal system and social diversity. Where there is social trust, there is economic growth, improved living conditions, improved government, and higher education efforts and investment rates. Poverty entraps people and hinders people from being able to send their children to school. Underdeveloped regions have a history of individuals who cannot afford schooling.
How Blockchain App Development Can Help Overcome Weak Institutions
Weak institutions have a multifaceted impact on both people and economies in third world countries. People are prevented from executing their rights due to the lack of proper documents and legal registries. This prohibits the participation in economic trade. Without the proper documentation, corruption is sure to abound, and the elites remain in control. This is where the blockchain app developer comes into play and can be beneficial for underprivileged countries.
Blockchain based property registries could allow for legal registration and documentation of real estate. By obtaining official property records, empowers people to prove ownership and offers them an additional incentive to make investments in their property. This indirectly decreases household size and fertility rates, while directly improving living conditions. These both result in improvements in education levels. This alleviates the poverty-education trap ultimately. When individuals have legal status and security, it allows them the opportunity of using their property for collateral.
Even though a land registry system is possible without blockchain technology, a blockchain app could solve the implementation of solutions for many of the most prominent problems facing underdeveloped countries.
About the Author
Ever since he was a child, Michael was captivated by technology. When the opportunity arose to spend his life writing about it, Michael didn’t hesitate. He now spends his time exploring and writing about captivating new technologies to introduce to the people. Michaels insatiable desire for new technologies lead him to pursue a computer science degree at Queens College in the UK. His work has been published on various technology blogs across the web.