In the ever-evolving realm of the internet, a transformative frontier is on the horizon, poised to reshape how Africans engage with, harness, and oversee their online resources. This groundbreaking frontier is Web3, the latest iteration of the World Wide Web, built upon block chain technology and steered by decentralized governance.
This article dives deep into the world of Web3, explaining its significance and exploring its real-world impact on the African continent.
However, to appreciate the transformative potential of Web3, it’s essential to revisit its predecessors: Web1 and Web2.
Understanding Web1 and Web2
Web1: This was the internet’s initial draft, born in the 1990s and early 2000s. Web1 primarily utilized “open protocols,” enabling the exchange of information by anyone. Initially, it was used for basic web browsing and communication, gradually expanding into e-commerce and academic research.
Web2: In the mid-2000s, Web2 ushered in the era of user-generated content through platforms like Facebook, Twitter, and Wikipedia. However, this innovation came at the cost of user data monetization and centralized control by tech corporations.
Key Differences between Web2 and Web3
The defining contrast between Web2 and Web3 is the distribution of control. In Web2, tech corporations hold sway over transactions, content, and data. Web3, however, promises a decentralized model, empowering users to govern their own information.
The Building Blocks of Web3
Web3’s foundation is built on three core technologies:
1. Block chain: A decentralized ledger system that records transactions across a network, offering resilience against centralized control or failure.
2. Smart contracts: Self-executing software programs that activate based on predefined conditions, ensuring trust and security in transactions.
3. Digital assets and tokens: Valuable digital entities like crypto currencies, NFTs (non-fungible tokens), and tokenized real-world assets. These technologies work in harmony to reshape the digital landscape, providing users with more autonomy and control.
The impact of Web 3 on Africa’s digital landscape
Africa, a continent often associated with untapped potential and emerging markets, is witnessing a digital transformation of unprecedented proportions. At the forefront of this revolution is the rise of Web3, an innovative concept that combines block chain, the Internet of Things (IoT), the metaverse, and non-fungible tokens (NFTs). Web3 promises a world that is free, open, and decentralized, and it holds the key to bringing Africa onto the global stage in the tech industry.
The surge of Web3 adoption in Africa is undeniable. With technologies such as block chain and crypto currencies gaining momentum, Africa’s crypto currency market witnessed a staggering growth of over 1,200% in value between June 2020 and July 2021, according to a report by Emurgo Africa and PWC. The numbers speak for themselves, with African Web3 and crypto-based startups collectively raising $139 million in 2022, a remarkable leap from virtually zero just a few years ago.
The pioneering startups
Some of the Web3-focused African startups are; Afropolitan, Lazerpay, Mara, Ayoken, Fincra, Helicarrier, Xend finance among many others.
Fincra:
Launched in September 2021 by Wole Ayodele, Fincra is a payments solution provider that facilitates seamless payment experiences. Through Fincra’s API integration, fintechs, businesses, and developers can access cross-border payment solutions, multi-currency settlements, and enhanced data security to combat fraud. The startup also provides virtual accounts in EUR, GBP, and NGN, regardless of business location.
Mara:
Mara, founded by Chi Nnadi in April 2021, is a pan-African startup dedicated to empowering sub-Saharan Africans with block chain technology. It is the official crypto partner of the Central African Republic and offers a custodial retail crypto wallet, a pro-exchange for professional traders, and a developer-friendly layer-one block chain to stimulate the growth of Africa-focused crypto and block chain products.
Lazerpay:
Established in December 2021 by Njoku Emmanuel, Prosper Ubi, and Abdulfatai Suleiman, Lazerpay is revolutionizing the way gig workers and businesses handle payments and payouts. Their decentralized and multi-chain payment gateway opens doors for innovative crypto products, including crypto payments, global payouts, business wallets, and crypto investments.
Afropolitan:
Founded in 2016 by Eche Emole and Chika Uwazie, Afropolitan is on a mission to create a digital nation for Africans, both at home and abroad. This community-as-a-service company is utilizing decentralized autonomous organizations (DAO), NFTs, and crypto currency to foster economic opportunities across borders, celebrating black and African talent, culture, capital, information, and experiences.
Ayoken:
Joshua King’s brainchild, Ayoken, is Africa’s first digital collectibles marketplace. This NFT platform bridges the gap between creators and their global fan base, enabling artists, musicians, sports brands, influencers, and creators to offer exclusive metaverse-specific content to their fans.
Web3, a tool to meet the real needs of Africa
To understand the significance of Web3 adoption in Africa, we must first recognize the pressing challenges faced by the continent. According to the World Bank, the average GDP per capita in Sub-Saharan Africa hovers around $1600, with median annual income at approximately $760. This stark reality, coupled with high rates of poverty and variable infrastructure, demands practical solutions that tangibly address these issues.
While fintech remains a significant area of focus for African block chain, it’s essential to acknowledge that Web3 is not solely about financial services. Land rights and verification, a persistent challenge across the continent, have found a solution in block chain.
Companies like HouseAfrica and Seso Global work with real-estate developers to bring land records onto the block chain, offering a transparent and immutable record of ownership. This addresses a fundamental need – the ability to own assets – making block chain a practical choice.
Even more conceptual projects like Cassava Network and Versus, bridge the gap between multinational brands and the African consumer through loyalty programs and the opportunity to earn rewards. By addressing both technological and economic needs, these platforms provide a clear reason for their use, in line with the ethos of practicality that drives the African market.
The path forward for Web3 in Africa
The future of Web3 in Africa relies on a grassroots approach. Mass adoption of block chain technology hinges on addressing the needs and preferences of the average consumer. As Africa continues to evolve, local founders and companies with a deep understanding of their markets will play a pivotal role in bridging the gap between complex technology and mass adoption.
Similarly, Africa’s potential in the Web3 revolution is vast, and it’s time for the world, including the crypto industry, to recognize and support the continent’s power to innovate and succeed. Web3 is not just a buzzword; it’s a transformative force that is reshaping the future of Africa, making it a global leader in the world of decentralized technology. Africa is no longer on the sidelines but right at the center stage of Web3 innovation.
