How blockchain is transforming Zimbabwe's economy

Zimbabwe is perhaps the first example that comes to anyone's mind when they think of failed states or economies. The country has been regularly making global headlines for the wrong reasons, with its inflation rate reaching 89.7 sextillion percent (yes, really) in November 2008. In those terms, an inflation rate of 737% is extremely low, which is where it had reached by July 2020, but of course this is still quite high by any normal standards. This is just one indicator of the state of Zimbabwe's economy over the last couple of decades. Agriculture, which is the main source of income for the majority of the country, has seen output decline by over 51% over the last few years, which has been a crippling blow and has pushed millions into poverty. Industrial production has also dropped by 47% over the same time period, and with such numbers, it is no surprise that GDP per capita has also declined by 40% in this time. Therefore, there is no doubt that Zimbabwe's economy is in a nosedive, and some radical solutions are needed to kickstart it again. It is here that blockchain technology could potentially play a huge role.

Blockchain, despite being a relatively new development, is already seeing a lot of success all over the world, and in Africa as well. Various sectors and businesses have been transformed as a result of using blockchain, and one of the best examples of this is the online gambling sector. Blockchain networks are being used to support online gambling sites, which have become safer, quicker and more reliable as a result. Transactions are quicker and less prone to fraud, while users' personal data is also safeguarded in a much better manner. Blockchain has also been used in conjunction with cryptocurrencies, with players having the option to place bets on their favourite online casino games through crypto. Thus, a multi crypto casino offering litecoin gambling is now a reality, with a lot of traffic and revenue being generated as a result as well. This example shows how the adoption of blockchain can help transform a sector completely, and while it will be far more difficult to implement across an entire country, there are areas where blockchain can have immediate benefits in Zimbabwe.

One of the biggest areas of potential is in making transactions faster and more reliable online. Since blockchain-based transactions do not have intermediaries, such as banks, transactions can take place rapidly, while the blockchain itself helps to secure those transactions and keep user data safe as well. Therefore, transaction costs also decline massively, with some crypto transactions being virtually free. This is not just restricted to the financial sector - blockchain networks can be used to support transactions and trading anywhere, with a digital record in place to help with audits as well.

Given the current global situation, another area where this innovation can have an immediate impact is in the healthcare sector. Blockchain can be used to build and support better applications, systems and record management protocols, all of which will help to make healthcare services more efficient. Blockchain is a network that promotes decentralization, in general, and therefore gives more control to the public. The platform will provide a huge incentive to entrepreneurs and businessmen in the country to set up new businesses and ventures, especially in the digital space, and therefore it is essential that Zimbabwe embraces blockchain technology as soon as possible. It can have huge benefits for the country and its people, and could be one of the biggest factors behind a potential revival for the economy as well.