If blockchain is the expected solution to various problems like economic challenges, are there some downsides and opportunities in how the technology has been used?
Faith Titus, Co-founder of Blockchain Nigeria User Group, anchored a session at the Digital Nigeria Conference 2022 that focused on the Myths, Truths, and Opportunities of the blockchain. One of the myths is the get-rich-quick scheme by buying a coin, Youssef of Paxful shared during the session.
The CEO explained that users who are not enlightened believe that buying a cryptocurrency is the route to becoming rich. Scammers have capitalized on this situation to scam a lot of users. Looking at the industry, I’d also say that scammers, not regulations, are one of the biggest threats to blockchain and crypto, Youssef added.
Blockchain is not a technology that can operate by itself; it cannot look for problems to solve, James Sisneros, founder of the Possibility Company, explained. Users should begin to look out for real blockchain solutions that impact lives and stop following the hype. Crypto is risky, the founder shared.
Regulating the blockchain industry
Dr. Usman Gambo, the Director of NITDA, explained that each regulating body in Nigeria has an area of focus regarding regulating industries. Each of these organizations is working together to ensure the proper regulations are created for the operation of any industry in the nation.
Government is not against blockchain and cryptocurrencies, the director said. As regulations are created with bodies such as NITDA, CBN, and others, we make sure we involve important stakeholders in the industry and also strive to protect the citizens of Nigeria.
Knowledge, and not just regulations, are needed to help manage the excesses in the crypto space, Ibrahim Dauda, President of PVG Consults, shared. Industry players will want to capitalize on users’ ignorance to scam them, which is why knowledge is important.
On the opportunity blockchain will create in Africa, Mr. James said that value creation to the web would be one of the greatest in Nigeria and Africa.