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WHAT IS WEB3?

Web3 is the term used to describe the generation of the internet where applications are built on decentralized networks that use blockchain technology and smart contracts. Web3 enables users to have more control over their own data, identity, and assets, and to interact directly with each other without intermediaries. Web3 also offers new possibilities for innovation, collaboration, and social impact across various sectors and domains.

Africa is a continent with immense potential and challenges, and web3 can help address some of the pressing issues that affect its people, such as poverty, inequality, corruption, governance, health, education, and more. Web3 can also empower African entrepreneurs, creators, and communities to access new markets, opportunities, and resources, and to showcase their talents and culture to the world. Web3 can also foster a more inclusive and diverse digital economy that respects the rights and interests of all stakeholders.

Some of the benefits and opportunities of web3 adoption for Africa are:

Financial inclusion: Web3 can enable more accessible and affordable financial services for the unbanked and underbanked population in Africa, who currently face high fees, low trust, and limited options from traditional financial institutions. Web3 can provide them with peer-to-peer(P2P) lending, remittance, savings, insurance, and investment platforms that are powered by cryptocurrencies and smart contracts. These platforms can reduce transaction costs, increase transparency, and enhance security and privacy. For example, Payourse is a platform that collects crypto wallet addresses and generates shareable links that help users transfer money to their wallets.
Education: Web3 can enable more effective and personalized learning for African learners, who often face challenges such as low-quality education, lack of access to resources, and limited opportunities. Web3 can provide them with online courses, certificates, credentials, and scholarships that are verified by blockchain and smart contracts. These courses can cover various topics such as web3 development, blockchain basics, crypto economics, and more. For example, Quidax is a crypto exchange that has partnered with AltSchool Africa to provide 100 students with the technical skills necessary to succeed in the new era of internet.
Bitcoin industry innovation: Web3 can enable more creative and collaborative innovation for African innovators, who often face barriers such as lack of funding, infrastructure, and support. Web3 can provide them with platforms for crowdfunding, incubation, acceleration, and mentorship that are powered by blockchain and smart contracts. These platforms can help them raise capital, access resources, network with mentors and peers, and launch their products or services.

These are few examples of how web3 adoption can benefit Africa in various ways. It is also interesting to know that web3 adoption also comes with some challenges and risks that need to be addressed or mitigated.

Some of these challenges and risks are:

Regulation: Web3 faces uncertain and inconsistent regulation from different governments and authorities in Africa, who may have different views and interests regarding the use of blockchain and cryptocurrencies. Web3 needs to comply with the existing laws and regulations in each country or region where it operates or serves. Web3 also needs to engage with the regulators and policymakers to educate them about the benefits and opportunities of web3 for Africa.
Adoption: Web3 faces low awareness and adoption from the general public in Africa, who may have limited knowledge or understanding of the concepts and technologies behind web3. Web3 needs to increase its outreach and education efforts to inform and inspire the potential users about the value proposition of web3 for Africa. Web3 also needs to improve its usability and accessibility to make it easier and more convenient for the users to access and use web3 applications.
Security: Web3 faces high security risks from hackers, scammers, fraudsters, and malicious actors who may try to exploit the vulnerabilities or loopholes of web3 applications or networks. Web3 needs to enhance its security measures and protocols to protect the data, identity, assets, and
transactions of the users from unauthorized access or manipulation. Web3 also needs to provide clear guidance and support to the users on how to safeguard their private keys or passwords.

These are some of the challenges and risks that web3 adoption faces in Africa, these challenges and risks can be overcome or reduced with proper planning, preparation, and collaboration among all the stakeholders involved in web3 development and adoption.

In conclusion, web3 adoption is necessary for Africa because it can provide many benefits and opportunities for the continent’s development and transformation. Web3 will help Africa solve some of its most pressing problems and unlock some of its most promising potentials. Web3 will definitely also help Africa participate and contribute in the global digital economy and society. Web3 is not only a technology, but also a vision and a movement for a better and brighter future for Africa.

Emmanuel Esin is a Content Fellow.