How Blockchain can combat poverty?

Big companies and organizations are surfacing their business operations on the platform built on Blockchain technology to enhance the pace of fast-growing international finance. But the benefits of Blockchain technology are not limited to the upper crust of high finance. The Blockchain Platform offers a cost-efficient and transparent way of recording transactions. Blockchain enables unknown people who don’t know or trust each other to exchange money in a fraud-free and theft free environment securely. Many startups, aid agencies, and nonprofit organizations are active in extending the benefits of Blockchain technology to developing countries to help poor people gain easier access to financial institutions for loans or to protect their savings. In this article, we will discuss the ways Blockchain can combat Poverty.

How can Blockchain help Fight Poverty?

For a longer part of modern history, the world’s poorest people have been neglected, and development meant nothing for them. Lack of opportunities, corruption, inflation, and high unemployment rates have played a significant role in setting them vulnerable and misfortunate. It is a global issue that the Blockchain platform seeks to address and attempts to combat in the following ways:

• Reducing Remittance Cost: We all are aware of the fact that sending money overseas needs the part to be played by the intermediaries such as Western Union, Uni Transfers, etc., and for this, they draw high transaction fees, which makes the whole process costing high. Using cryptocurrency inspired by Blockchain technology instead of cash is one way to transfer money in any part of the world at zero or low cost. Blockchain platforms enable users to transfer cash at relatively lower prices, hardly possible in conventional ways of money transfer.
• Enhancing Financial Inclusion: According to the World Bank, Around 25% of the world’s total population is unbanked, and they also have no means to open a bank account. Apart from this, many developing countries don’t have access to certain services and advantages despite having a bank account. They don’t have the means to participate in global commerce. Here, Blockchain inspired cryptocurrency plays a crucial role in empowering small businesses and makes them capable of participating in international import and export. Another way financial inclusion helps deprived people by giving them access to international payments. This way, it helps to reduce the deprivations of access to financial services for poor people.
• Combatting Corruption: A significant issue or challenge developing countries are dealing with is the corruption of those in power. Blockchain can be a solution to this. The storage of data on a Blockchain platform enables the public to monitor state funds and expenses, making a more transparent contract system. Blockchain technology is also useful in the election process and can make the process of elections more transparent. The absence of transparency is a significant reason for corrupt regimes in developing countries.

Blockchain technology is experiencing higher growth, and this technology’s advancement has made people see a better future. It is interesting to see to what extent developing countries and poor people will implement the Blockchain solutions to deal with their problems. It is not about state initiative only, but people themselves require gaining Blockchain education to be aware of the benefits Blockchain technology can bring to them, and for this all they need to join Blockchain classes guided by Blockchain council.