The technology can come in handy in the fight against counterfeits. FILE PHOTO | NMG
The World Economic Forum has stated that by 2025, 10 percent of
global Gross Domestic Product (GDP) will be stored on Blockchain and
Blockchain-related technologies.
This indicates how the
technology is rapidly gaining traction globally. However, in Kenya just
like in the rest of Africa, the technology is just beginning to be
understood.
Experts say people will learn more about
this new technology as its usage expands. Then there is a new book,
Understanding the Blockchain by Benjamin Arunda, a certified Blockchain
expert, which gives a simplified in-depth overview of the technology and
its uses in various sectors including education, banking, health,
insurance, law, film, manufacturing, energy, mining and journalism.
“Blockchain
is all about building and cementing trust in almost all transactions in
life,” says Mr Arunda who is the head of education at Blockchain
Association of Kenya.
“This is through peer to peer transactional relationships without an intermediary.”
Mr Arunda’s book, which is apparently the first on the emerging
technology in Kenya, spells out how the government can use Blockchain to
prevent election rigging. To achieve free and fair elections, it can be
used to create a tamper-proof system, eliminating voter fraud and
providing an authentic record of votes cast.
In Kenya,
the Independent Electoral and Boundaries Commission (IEBC), has hinted
at adopting the technology in future elections to improve transparency
and integrity of polls.
“Blockchain can also be used in
the national identification and registration of citizens and foreigners
where their data is put into a distributed public database which is
impenetrable,” Mr Arunda, 29, says.
“It will help in cross-border controls and solve the immigrant juggernaut.”
The
innovation is also key in setting up a Single Source of Truth (SSOT)
regarding land ownership and transfer of property in Kenya. A
distributed ledger like Blockchain has “public witnesses” called nodes
who help to validate each transaction. This will put to end land
grabbing and fraud.
The technology can also play a
critical role in the education sector. Cases of certificate forgery and
infringement of academic content copyrights can be stopped by
Blockchain.
“It will help to create an e-portfolio for
all academic credentials,” says the author who studied Bachelor of
Commerce, finance option, at the University of Nairobi.
The
author has also learnt about digital currency at the University of
Nicosia in Cyprus, Javascript programming at Moringa school and ACCA at
Strathmore University.
Blockchain, says Mr Arunda, enables the creation of a lifelong learning passport that can be used across the globe.
“It
will allow for safe and easily accessible storage of files on a cloud
and boost transparent fees payments and external funding,” Mr Arunda
notes in his book.
In health, the author says
Blockchain is what the doctor has ordered. Sometimes surgeries are done
on the wrong patient because of “confusion of patient data”.
Blockchain,
he notes, will enhance patient data privacy, interoperability and
security of all healthcare data, making patients safe by boosting the
professionalism of surgeons, doctors and nurses.
“The scandals we see in the health sector will also come to an end as well as malware and viruses that corrupt health data”.
Weeding
out fake medicine from the supply chain will be a critical role of
Blockchain, besides curbing the theft of public resources set aside for
health.
Research has shown that 56 percent of healthcare providers worldwide are hopeful to start using Blockchain by 2020.
Banking
and capital markets can also benefit immensely through speeding up and
simplifying cross-border payments, preventing financial fraud and easing
customer onboarding processes.
“This technology will
block middlemen in the trading of shares, bonds and securities. It will
offer an efficient platform for the issuance, transfer and management of
private company securities in a manner that reduces costs,” Mr Arunda
says.
Insurance sector can use Blockchain to increase
efficiency in transfer and administration of funds and documentation of
financial collateral such as letters of credit.
Research has shown that between 5 percent and 10 percent of claims in Kenya are fraudulent.
“Many insurance companies have struggled to manage risks and authenticate claims,” Mr Arunda says.
“Blockchain
can be used to establish a claims model that is transparent, efficient
and customer-based with the highest levels of trust.”
Insurers, he added, are able to obtain a clearer visibility and knowledge of their reinsurance contracts and exposure to risk.
The
technology can also come in handy in the fight against counterfeits.
Global statistics show that 8 percent of world trade is made up of
counterfeit or pirated goods.
“Blockchain makes it
easier to register each product with a unique cryptographic identity
that cannot be changed,” says Mr Arunda. “Goods can be registered on the
Blockchain before being registered into the supply chain network and
assigned hash identities that will allow tracking. This will scare away
thieves. “
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