Opinion by Ayush Ranjan, Co-Founder and CEO of Huddle01
The Real Power of Web3: Beyond Meme-Making Millionaires
Many claim that Web3 is nothing more than a speculative playground, where memes seemingly win out over actual utility. Long-term builders and dreamers can quickly lose faith in the industry’s future. However, despite media narratives, there are bright spots in the world of blockchain and crypto.
Blockchain and Crypto: A Force for Good
Blockchains and cryptocurrencies have been making waves globally, but their true power lies not in creating overnight millionaires, but in genuinely benefiting humanity, particularly in emerging markets. These technologies help address uneven value distribution, providing a lifeline to the underserved and underbanked, and combating deficiencies in modern traditional institutions.
Emerging Markets Lead the Charge
According to the World Bank’s estimates, as of 2024, approximately 1.4 billion people worldwide remain unbanked, unable to access basic financial services. The decentralized nature of blockchain technology is perfectly suited to addressing these issues. Emerging markets are leading the charge in crypto adoption.
Africa: A Region at the Forefront
One region that stands out as a leader in crypto adoption is Africa, where limited access to banking services has created an ideal environment for decentralized technologies to thrive. Even in 2021, around 300 million adults in Sub-Saharan Africa couldn’t access essential banking services, severely limiting their ability to conduct everyday transactions, save, or invest.
Crypto: Changing the Narrative
The narrative is changing, and crypto adoption rates are on the rise. According to Chainalysis’ 2024 Global Crypto Adoption Index, developing nations dominate the rankings, with countries such as India, Indonesia, and Nigeria leading the way. As of 2023, Sub-Saharan Africa had the highest Bitcoin (BTC) adoption rate in the world, with Nigeria ranking second globally.
Functionality Advancing
Emerging markets are witnessing the functional use of crypto, beyond just speculation. Local entrepreneurs, driven by first-hand insights into local problems, are creating meaningful change through technological innovations tailored to specific needs. Initiatives like CARE’s pilot programs in Kenya and Ecuador demonstrate how crypto can provide access to essential goods and services while fostering economic recovery from the COVID-19 pandemic.
Necessity as a Driver
Acute governance problems can also drive adoption by necessity. Recent examples include the Indian city of Raipur, which put real estate records on the blockchain with an innovative encryption startup called Airchains. This blockchain-based solution aims to prevent forgery and reduce processing time from a month to three days.
Fund Adoption: Not Shiny New Things
While capital flows into crypto projects in emerging markets are increasing, they still fall short compared to funding available for projects in well-developed nations. In 2023, developed nations, particularly the United States, led with approximately $1.975 billion invested in Q3 alone, with US-based companies accounting for 34.5% of all crypto VC funding.
A Shift Towards Emerging Markets
The recognition of potential in emerging markets has grown, and it’s time for crypto investment to follow suit. Crypto is a functional tool, rather than a speculative asset, in emerging markets.
Conclusion
Blockchain and crypto are not just tools for creating overnight millionaires; they have the power to genuinely benefit humanity, particularly in emerging markets. It’s time to shift our focus towards these regions, where mass adoption is happening, and provide support to builders committed to driving change.
About the Author: Ayush Ranjan
Ayush Ranjan is the co-founder and CEO of Huddle01. He brings a unique perspective on blockchain and crypto, with a deep understanding of emerging markets and their potential for growth.
Note: This article is for general information purposes only and is not intended to be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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