Mazzuma and FlexID Are Web3 Solutions – Lopoid Crypto News #Mazzuma #FlexID #Web3 #Solutions #Lopoid Crypto News Welcome to Lopoid
African fintech startups concentrate on blockchain’s use circumstances relatively than speculative investments.
Entrepreneurs have already solved points in cross-border funds and ID verification.
This article is a part of “Master Your Crypto,” a sequence from Insider serving to buyers enhance their expertise in and information of cryptocurrency.
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Blockchain is usually a byword for speculative investments and crypto crashes.
But in Africa, startups are working to deploy Web3 use circumstances, like bringing underbanked folks on-line and right into a extra centralized monetary system.
Data from the Swiss Crypto Valley Venture Capital, or CV VC, exhibits that whereas African blockchain startups raised $127 million in 2021, funding for the primary quarter of 2022 alone has already totaled $91 million — a 1,668% improve from this time final 12 months.
“There’s a very clear difference between the startups that we invest in from Africa versus those from Europe and other developed markets,” Gideon Greaves, a managing director at CV VC for Africa, mentioned in a latest interview with Insider. “In Africa and similar emerging markets, we’re kind of teaching the rest of the world about the true use cases of blockchain.”
By utilizing blockchain and automation to decrease the prices of historically costly processes, African startups have already begun to handle points like accessibility and fraud — with extra use circumstances within the works.
“In Africa, we have this problem of identity verification on a daily basis,” mentioned FlexID founder Victor Mapunga.
Courtesy of Algorand
Identity verification: one other main use case
Blockchain information ledgers may additionally confirm an individual’s identification, alongside different private credentials like instructional historical past, vaccination data, and medical certificates, Greaves mentioned.
That’s what Victor Mapunga got down to do when he based FlexID, a Zimbabwean startup backed by the Algorand Foundation that goals to supply proof of identification to the estimated 400 million folks in Africa who lack formal identification, he informed Insider.
“You can’t verify credentials about individuals in a centralized fashion because it’s very hard to trust the origin of those credentials, it creates a central point of failure, and it makes it very hard to scale,” Mapunga mentioned, including that taking a decentralized strategy with blockchain can be “fundamental” in fixing Africa’s issues with identification verification.
Mapunga brainstormed his enterprise concept after personally experiencing the debilitating obstacles round opening a checking account and has since constructed FlexID on WhatsApp, which he referred to as one of many “most ubiquitous platforms” for web entry in Africa. Having verified 1.2 million financial institution credentials in Zimbabwe over the previous three years, FlexID now focuses on scaling person onboarding into the formal financial system with out compromising privateness.
“When you think of blockchain, you always think of traceability and transparency — that’s what was promoted a lot in the early days of blockchain, and that’s exactly what we’re seeing in Africa,” Greaves mentioned. “I think it really has the power to transform the continent and to stop corruption long term.”
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