CALL-TO-NOTICE: The Blockchain Application We Ought to Know Instead: A Potential Hope for Pan-Africa banking.
Alright, I can already hear you thinking, “What’s this person blabbering about now? We’re all acquainted with it, the revolutionary force that gave rise to Bitcoin, Ethereum and its other cousins. Yes, the utilization of blockchain technology, or, if we’re inclined to be more technical, Distributed Ledger Technology (DLT), which amongst other things underpins the power of cryptocurrency. Cryptocurrency, that thing that was supposed to allow us to evade central authorities and now it feels more like another overhyped tech scam. You know how they say, “You never get a second chance to make a first impression” or “First Impression lasts Long”.The majority of ideas that no longer exist suffered that fate, and so did the underlying technology that powered cryptocurrency, the Blockchain — A Distributed ledger system.
The Blockchain is a decentralized network right, but here is something most people don’t know, there are types of these Blockchains; Private, Public, Permissioned, Permissionless and some other classifications that are not needed here. Public blockchains allow anyone to participate, while private blockchains enforce membership, and only parties with a valid membership can participate in the blockchain. A permissionless blockchain has no central authority, and anyone can participate. They can read and write the blockchain. A permissioned blockchain requires a managing blockchain authority to enroll and grant membership to participate. The enrolled party may have rights to read-only, or write only, or read and write. Hyperledger Fabric is a permissioned private blockchain.
Naturally, one might wonder, “Why is he introducing something called ‘Hyperledger Fabric,’ and why should we be concerned?” A valid inquiry indeed, for Hyperledger Fabric could potentially be the solution Africa needs to establish a self-reliant financial framework for inter-Africa banking. Allow me to acquaint you with this technology as defined by IBM, a major contributor to its development:
- “Hyperledger Fabric is an open, proven, enterprise-grade, distributed ledger platform. It has advanced privacy controls so only the data you want shared gets shared among the “permissioned” (known) network participants.”
This insight might start to resonate with my earlier statement, “A Potential Hope for Inter-Africa Banking.” This very technology, Hyperledger Fabric, is key here. Now, let’s redirect our attention from this technology and direct it toward Africa for a while. Africa contends with a multitude of challenges; however, I’d like to highlight two economic solutions that take precedence as essential:
A borderless Africa, (which is not our concern yet in this article)
Embedded within the text above, you’ll find YouTube shorts that vividly exemplify these solutions. I strongly encourage you to view them. If you’ve watched these videos, I’m confident you’ll find merit in the notion that these two solutions are pivotal for Africa’s advancement. So, how does this particular blockchain application, Hyperledger Fabric, aid Africa? It hinges on African commercial banks joining forces to establish the envisioned “trans-border trade system.” And this is where Hyperledger Fabric takes center stage.
Here is why, going back to IBM's quote on the technology, Hyperledger Fabric is:
Open Hyperledger Fabric operates under the banner of open-source technology, which means we can use this technology. To gain a better grasp of the influential tech entities actively propelling Hyperledger Fabric, you can explore the list of significant contributors .
Proven The technology’s widespread adoption by prominent companies and nations attests to its robustness. A simple exploration into the companies and countries that have already embraced Hyperledger Fabric demonstrates its real-world impact. This extensive adoption stands as a testament to its reliability and adaptability to diverse use cases.
Enterprise-grade Hyperledger Fabric stands as an exemplar of technology meticulously engineered to meet enterprise-grade standards. Its architecture is designed to accommodate the intricate requirements of businesses, enabling seamless scalability, secure transactions, and adherence to industry regulations. This focus on enterprise-level applicability ensures that it can effectively address the complex needs of the modern business landscape.
Distributed ledger Central to Hyperledger Fabric’s functionality is its foundation as a distributed ledger technology (DLT), Blockchain. This means that the ledger’s record-keeping mechanism is decentralized and shared among network participants. In the context of Africa’s vision, where inclusivity and accessibility are crucial, a distributed ledger ensures that every participant, from local entities to continental players, can engage and contribute to the shared ledger state.
Privacy The preservation of privacy is a cornerstone of any financial system, and Hyperledger Fabric acknowledges this imperative. The technology maintains advanced privacy controls, ensuring that only data authorized for sharing is accessible to the designated participants within the network. Banks, integral components of any financial ecosystem, require this assurance to sustain their operations.
If you’re now pondering, “Why exactly bring Blockchain into this equation?” or questioning the motive behind this inclusion, let me elucidate: Blockchain addresses a paramount challenge that lies at the core of Africa’s ambition to create a cooperative banking and monetary framework — a challenge that reverberates with the resounding word: trust. Think about it, how can you expect 54 diverse countries to unanimously agree on something as intricate as a monetary system or a common ledger system?. Imagine, for a moment, attempting to unify such a diverse ensemble of nations under a single financial regime. The inevitable clashes of interests and priorities can stall progress and imperil the venture’s existence. Here’s where Blockchain holds sway. It democratizes authority, affording every participant a say in the orchestration of actions. Consensus becomes paramount, functioning as the cornerstone upon which decisions are founded. Blockchain’s distributed nature ensures that no single entity can dictate terms or monopolize power. Each party’s input holds weight, fostering a collective endeavor where collaboration is key.
Allow me to clarify my intention here, as it’s essential to dispel any misunderstandings. What I’m conveying is not an advocacy for a singular currency across Africa, although that notion isn’t without merit. Consider the Eurozone, where the majority, if not all, of the countries transact in Euros — an arrangement that showcases the viability of a unified currency. However, the essence of what Hyperledger Fabric (HF) offers goes beyond the realm of introducing a new cryptocurrency. HF isn’t conceived or designed to support a distinct coin or token. The crux of the matter revolves around the establishment of a shared ledger system, a distributed and permissioned structure. This unified ledger, represented by Hyperledger Fabric, functions as a shared platform for seamless cooperation. The focus is on enhancing trust, transparency, and efficiency in trade — attributes that are crucial for nurturing healthy economic relationships among African countries. So, envision Africa’s nations metaphorically convening around a single ledger, akin to the pages of a collective ledger book, to collectively ensure financial integrity, enhance trust in transactions, enable the unhampered exchange of the continent’s treasured resources, and potentially embrace a unified unit of transaction. This endeavor underscores the power of unity through shared oversight and accountability, and Hyperledger Fabric stands as the conduit for transforming this multifaceted vision into a tangible reality.
I'll wrap up here but a lot is still involved in this technological solution, another is Hyperledger Aries. This article aimed to raise awareness about this technology with the potential to foster a united and prosperous Africa. I am committed to delving further into this technology and sharing insights with fellow developers across Africa. My next endeavor involves practical implementation—coding it up. My upcoming piece will briefly explain the architecture and offer practical guidance to understanding it from a codebase perspective. If you are a software developer, especially in the Blockchain ecosystem, I employ you to explore this technology and communicate with your peers on building it for Africa.