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From celebrity-endorsed memecoins to tap-to-earn games promising false wealth, Nigeria’s crypto and blockchain landscape is often seen as a series of get-rich-quick schemes. Senator Ihenyen, Lead Partner and Head of Blockchain at Infusion Lawyers, asserts that Nigeria’s blockchain and crypto sector is heavily driven by hype rather than originality.
Speaking at Lagos Blockchain Week earlier this month, Ihenyen highlighted that blockchain has the potential to address real-world problems in sectors like logistics and finance. However, he criticized the current focus on superficial hype, stating, “There is no substance there.”
Real-World Applications of Blockchain
While cryptocurrencies have popularized blockchain technology, Ihenyen pointed out several other applications. In the pharmaceutical sector, for instance, blockchain can verify the authenticity of medicine through transparent, real-time tracking by the manufacturer.
A 2023 United Nations report estimated that 500,000 people die annually from counterfeit drugs in sub-Saharan Africa. While blockchain solutions for this issue are not widespread, IBM has developed Blockchain Transparent Supply, an infrastructure that ensures the authenticity of pharmaceutical products.
According to IBM, “Data sharing and visibility into a product’s journey from the production line to the patient make it possible to decrease fraud through an immutable record of events.”
Chimezie Chuta, Founder of Blockchain Nigeria User Group (BNUG), also present at the event, proposed using blockchain technology in elections.
Blockchain and Elections: A Possible Solution?
Chuta suggested testing blockchain technology in low-level elections, such as those for student unions or the Nigerian Bar Association (NBA), before implementing it nationally. This approach could potentially address issues in Nigeria’s democratic process.
Although blockchain-based voting systems are not yet popular, they have been considered before. In 2019, US presidential candidate Andrew Yang proposed blockchain-based mobile voting, arguing that “it is ridiculous that in 2020 we are still standing in line for hours.”
Interestingly, West Virginia, USA, used a blockchain-based mobile voting application for citizens abroad during elections. The state described the election as successful, though it did not provide detailed results. This lack of transparency is one reason blockchain-powered elections face criticism.
The Focus on Memecoins: A Double-Edged Sword
Nigeria’s Securities Exchange Commission has warned against investing in memecoins like $DAVIDO, launched by Afrobeat star Davido, noting they have no fundamental value. The trend of memecoins deviates from the disruptive potential of blockchain and cryptocurrency, originally envisioned by figures like Satoshi Nakamoto and Nigerian proponents like Chuta.
Ihenyen sees the memecoin trend as a double-edged sword. While memecoins often serve as an entry point into the crypto world due to their affordability and hype, they can also lead to disillusionment and long-term negative effects on adoption when people experience scams.
To mitigate this, Ihenyen suggests that memecoin creators should be transparent about the risks, emphasizing that “people should not be misled into thinking they can become overnight millionaires.”
Changing Perceptions and Moving Forward
The proliferation of scam coins has contributed to negative perceptions of cryptocurrency and blockchain, with influential figures like Warren Buffet and JPMorgan Chase & Co CEO Jamie Dimon dismissing Bitcoin as worthless or fraudulent.
However, if the focus shifts from hype to substantial, fundamental projects, blockchain’s potential as a disruptive technology could gain the recognition it deserves, showcasing its numerous real-world applications.
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