Technological advancements have reduced global poverty significantly in the past 100 years, still, there are more than 1.3 billion people living below the poverty line. There are a broad diversity of causes for poverty, which is different in every country. But in general, the causes for poverty include lack of access to banking facilities, overpopulation, lack of education, lack of legal ownership of property, epidemic diseases, environmental problems, changing trends, and lack of rule or laws in a country’s economy. To break the cycle of poverty, the basic thing begins with providing quality education to children and investing in children. Another major aspect that needs attention is the access to affordable health care, clean water, sanitation, and economic security of the country. All these are possible in a quick and effective manner, with the help of blockchain technology. In this article let’s see how can blockchain technology and the developing markets can help in eradicating poverty.
Diminishing Poverty With The Use Of Blockchain Technology
There are significant advantages in reducing the informal economy like accumulating government pensions for workers, government protection for consumers, enabling companies to grow bigger, and increased job security for workers, all contributing to reducing poverty. The emergence of blockchain technology can contribute to this enormous quest to reduce poverty on a global scale. Let’s see how can this happen:
Securing Property Ownership
As per the UN goals, by 2030 poverty should be non-existing in the world. The combination of blockchain technology and other technologies like Big Data Analytics & Artificial Intelligence can enable us to achieve this audacious goal. This combination is also useful to obtain a loan, through a blockchain-powered financial institution at very low costs. This can enable the poor to improve their lives and grow their business. There are blockchain development companies like OpenXcell that provides best blockchain services.
Diminishing Poverty With The Use Of Blockchain Technology
There are significant advantages in reducing the informal economy like accumulating government pensions for workers, government protection for consumers, enabling companies to grow bigger, and increased job security for workers, all contributing to reducing poverty. The emergence of blockchain technology can contribute to this enormous quest to reduce poverty on a global scale. Let’s see how can this happen:
Securing Property Ownership
- Complete registration of property ownership is vital.
- The blockchain is the technology that is perfectly suitable to register the ownership of property of anything non-digital and digital.
- Blockchain protects the rights of the owner and transfers the ownership after sales which eventually prevents fraud.
- Financial incorporation is an important step towards reducing poverty.
- It gives people more freedom to save and spend money.
- Unfortunately, it is very difficult for poor people to open a bank account and get a loan to build a business or improve their lives.
- As either, they don’t have the right ID or they don’t have a credit history. Both of these reasons make it nearly impossible to get access to banking facilities.
- Therefore, the only option they get is to save in livestock, which apparently is not very liquid if a need to buy essential items such as medicine arise.
- There are organizations of blockchain app development that provides free apps for banking facilities, which are easily accessible.
- Blockchain technology enables multiple stakeholders to access, add, and update the records in a shared database.
- The organizations that are part of the, public or private, blockchain always have an up-to-date, single version of the truth, and this is the major advantage for them.
- The use of blockchain will reduce settlement times, costs and risk in the financial services industry.
- The same benefits apply to non-profit organizations that aim to help the poor.
- Blockchain technology can enforce accountability at every link in the chain with the transparent and viewable record in the ledger.
- Recording all interplay in an immutable, public ledger means that each transaction leaves an impression.
- The use of smart contracts remove the need for human interaction and also ensures that irreversible payments are made.
- This prevents the seizing of land that has always been a disadvantage to the poor.
As per the UN goals, by 2030 poverty should be non-existing in the world. The combination of blockchain technology and other technologies like Big Data Analytics & Artificial Intelligence can enable us to achieve this audacious goal. This combination is also useful to obtain a loan, through a blockchain-powered financial institution at very low costs. This can enable the poor to improve their lives and grow their business. There are blockchain development companies like OpenXcell that provides best blockchain services.