A cryptocurrency is a digital currency that is made as a medium for exchange. It ensures a secure transaction and control of the creation of new units of it. It is Internet-based and is not bound by geography. Blockchain is a system that stores information, which makes it difficult to hack or cheat the system. Undoubtedly one of the hottest topics nowadays. African Blockchain startups focus more on implementing distributed ledger technologies. Many people think of this as just a new payment system, but it is far more than this. This technology can revolutionize online transactions that take place. With these features, Blockchain has started to take over the world. Africa is gaining more attention because of these. The rapid growth of their unbanked sector is visible these days. Many Blockchain startups are visible in Africa, so it isn’t easy to only pick one. Here are the five famous African crypto and Blockchain startups: –
- Bitpesa, a Kenyan Blockchain startup, mainly focuses on payments related to Bitcoin’s business and exchange services.
- It was founded in 2013 to provide an alternative payment system to the customers, which have a legacy and a low cost for the money transfers by Elizabeth Rossiello. This startup has attracted many of the reputed venture capital over these years.
- The investors have confidence in investing in this startup because of its business model. It has also purchased TransferZero, a Spanish money transfer platform, which has helped them in growth payment markets and European remittance.
- The startup with the headquarters in Nairobi is now active in Africa’s seven main markets, including Kenya, DRC, Uganda, Ghana, Tanzania, Nigeria, and Senegal.
2. The Sun Exchange
- The Sun Exchange is a cape town-based Blockchain that allows anyone to invest in projects based on solar panels using Bitcoin. It has also won the energy Blockchain challenge of the French Development Agency (AFD).
- In the marketplace, anyone can purchase solar cells and have them as the power commercial. These solar cells are usually purchased by factories, schools, hospitals, etc. It also arranges leases for you on solar equipment and the distribution and revenue collection, making you earn a passive stream of rental income.
- The payment model of this company is by using cryptocurrency Bitcoin. So, it does not include any additional payments like the traditional one.
- This company has partnered with Powerhive and has done a solar-powered electrification mini-grid project in Kenya’s rural areas, which is appreciable.
- Bankymoon is another startup in South Africa which mainly focuses on Bitcoin integration. This startup takes advantage of Blockchain technologies by providing us with Bitcoin payment gateways.
- It will allow accepting Bitcoin payment for utilities for the vendors.
- This startup looks to cut out the intermediate like municipality that channels utilize for commercial, industrial or residential customers. So, likewise, it cut out the middlemen, which reduce the costs.
- The traditional payment methods are often expensive and a bit inconvenient for many of the customers. So, Bankymoon offers the Bitcoin method that is cheap, convenient, and accessible for many of these problems.
- To launch its product in the market, it seeks funding.
- Another startup offering Blockchain services is a Ghanaian based company called Bitland. The important service they provide is for the land registry utilizing the advancements in Blockchain technology.
- To access land surveys and property registrations by the organizations and locals, they provide the infrastructure and some basic needed services. Typically is done by the automation and the streamline of this whole process of registration of land.
- By the combination of automation with the services of Blockchain technology, it is providing us with a record system. This startup is trying to extend its services to the entire globe. They are looking forward to expanding its furthermore to other places on the African continent.
- It also builds infrastructure in other developing countries for potentially unlocking billions of dollars in untapped property rights.
- Blockchain service is also provided by this Nigerian based company NairaEx. It allows users to get Bitcoin by the trade of Nigerian Naira.
- For providing a healthy and stable monetary system, this startup uses the power that Bitcoin has. It allows the Nigerians to have access to power and wealth provided by Bitcoin.
- These Bitcoin trading platforms allow us to sell and buy Bitcoins and other e-currencies like Perfect Money, bank deposits, bank transfers, etc.
- NairaEx has come up with better options regarding payment of cash as it does not depend on payments through mobile. The transactions which are seamless and clear exchanges made this platform more popular.
Benefits of Introducing Blockchain in the Startup Industry
- We can get easy access to the capital by the influence of Blockchain technology. Finance is a barrier we have to face for a startup as most of the traditional finance companies do not provide funds because of the risk. So, Blockchain is useful here as it is nothing but a distributed ledger.
- For managing a supply chain, Blockchain is of great use. It will provide transparency where there is no scope for any confusion. It will help B2B companies ease processes like ownership transfer, production assurance, and payments.
- Blockchain technology has fully automated legal agreements, helping to get better, faster, and secure documentation of your business. It can even automate the entire process without any involvement of humans. The smart contract it can replace the systems.
- Your confidential data that you save in the Blockchain will always be secure. Blockchain has many blocks that have data encrypted on it. So, it becomes difficult for one to change data from it. By this, it will work as a safeguard your confidential data from being theft.
- When it comes to business, transparency and accountability are both ever needed. Blockchain technology can provide you with both, which makes it even more amazing. All the transactions done with the Blockchain technology’s presence cannot be deleted or changed without other nodes’ permission.
- The hiring process will be easily done with this technology. Hiring can be difficult as the HR needs to call the employee’s previous company to find their history. This brilliant technology even saves time by verifying the resume of the job applicant.
Blockchain benefits for businesses are beyond our expectations. They can provide businesses with a better way of managing finance, productivity, operations, etc. The finance industries are the first to adopt this technology. Bitcoin is a famous global brand that leads to Africa. Revolutionary changes are occurring in continents like Africa because of these technologies. Blockchain is like a wave of technology that will be hitting many of the developing countries. It is a useful thing for startups as it has many such features which will help them well. Crypto and Blockchain startups are growing tremendously in the market of Africa. An example of the new technology that we can use it at ease. We can surely look forward to many more startups related to it in other countries in the future.