How Can Blockchain Fight Poverty?

In order to accelerate the speed of fast-growing international finance, major corporations and companies are surfacing their business activities on a network based on Blockchain technology. But the advantages of Blockchain technology are not restricted to the high-finance upper crust. The Blockchain Networks provide transactions with a cost-efficient and open way of tracking them. In a fraud-free and theft-free world, Blockchain allows unknown individuals who do not know or trust each other to exchange money securely. Several start-ups, relief agencies, and non-profit organizations are aggressively spreading the benefits of blockchain technology to developing countries in order to help vulnerable people gain easier access to loans or to secure their assets from financial institutions. We'll address the ways in which Blockchain can battle poverty in this article.

How do you help Blockchain battle poverty?

The world's poorest people have been ignored for a long period in modern history, and progress has meant little to them. Lack of opportunity, corruption, inflation and high levels of unemployment have played a major role in making them poor and unfortunate. The Blockchain platform aims to solve this global problem and tries to fight it in the following ways:

Reducing Remittance Cost: We are all aware of the fact that the position of intermediaries such as Western Union, Uni Transfers, etc. needs to be performed by sending money overseas, and for this they draw high transaction fees, which makes the whole process costing high. Using Blockchain-inspired cryptocurrency instead of cash is one way to pass cash at zero or low cost in any part of the world. Blockchain platforms allow users to transfer cash at comparatively cheaper rates, which in traditional methods of exchanging cash is hardly possible.

Improving financial inclusion: According to the World Bank, nearly 25% of the world's total population is unbanked and has no means of opening a bank account either. Apart from this, despite having a bank account, many developing countries have little access to such programs and benefits. They don't have the means to get interested in foreign trade. Here, the cryptocurrency inspired by Blockchain plays a crucial role in empowering small businesses and allowing them to participate in foreign import and export. Another form of economic inclusion benefits disadvantaged persons by allowing them access to foreign payments. This helps reduce the lack of access to financial services for the disadvantaged.

Combating abuse: The corruption of those in power is a big problem or issue that developing countries are facing. A solution to this may be Blockchain. Data storage on the Blockchain platform helps the public to monitor state funds and expenditures, making the contract structure more open. In the election process, blockchain technology is also useful and can make the election process more transparent. The lack of transparency is an essential reason in developing countries for corrupt regimes.

Blockchain technology is undergoing greater progress, and the growth of this technology has helped people see a better future. It is important to see how Blockchain technologies can be applied by developed countries and disadvantaged people to deal with their problems. It's not only about state initiative, but individuals themselves need to obtain Blockchain education to be informed of the advantages that Blockchain technology can bring to them, and all they need to join Blockchain council-led classes for this.