The emergence of blockchain powered climate solutions heralded a potential paradigm shift in the transformation of society. For the first time , we as human beings had a trustless, immutable and secure mechanism by which we could incentivize conservation of nature.
This is particularly true for developing countries in Latin America, Asia and Africa , that had a chance to harness the power of distributed ledger technology in improving their governance and administrative processes to embrace the shift.
This hasn’t turned out to be the case.
Instead, the technology has been met with more skepticism than goodwill.
This is largely, due to the sensationalized volatility witnessed in the resultant speculative crypto markets.
Today, we’ll talk about 3 challenges hindering the advancement of web3 climate solutions.
1. Poor Electricity Networks and Communications Infrastructure.
Most of the developing world has made significant leaps towards connectivity. However, many places still lag behind in terms of network access and stability of infrastructure.
Lagos, for example , is one of the fastest growing cities in the world. However, the city is plagued by constant blackouts, forcing the citizens to rely on backup generators. Besides, the internet connectivity is patchy in most areas of the city, limiting the ability of citizens to access crucial internet utilities.
Considering that Nigeria ranks top on the continent in web3 enthusiasm, this is an overlooked factor in the analysis of adoption of web3 solutions.
2. Lack of Effective Communal Education Systems
Admittedly, the web3 world is still in its nascent stages of development. This means that fundamental concepts are not only complex and tricky to break down for the average person, the underlying technology grows in leaps and bounds every day.
The breakneck pace at which new inventions come make it impossible for the masses to keep up, let alone seasoned OGs.
Besides, the majority of the developing world’s first languages are different, hence a barrier towards understanding technical terms. 3. Lack of Regulatory Clarity It is ironic that despite the golden opportunity for developing nations to embrace web3 solutions to leapfrog past their advanced counterparts, most have taken a wait-and-see approach in legitimizing them.
Although countries like El Salvador and the Central African Republic have taken a brave step in legalizing cryptocurrencies, most African countries have taken a harsh stance, or no stance at all.
This has destroyed the confidence of the general public, many of whom have fallen victim to vicious scams .
These are three observations that we as Safi Protocol have made in our brief excursion into reimagining energy financing solutions for those who need it most.
Stay tuned for our next article, where we talk about how we are bridging the gap brought by these challenges.