For many people across the world, Pakistan’s recent election year may seem like a chaotic chapter from 1960s. It is no secret that Pakistan’s socioeconomic indicators are dismal. In the recent elections, promises were made to turn Peshawar into Paris, Lahore into London and all of Pakistan into a welfare superpower state that will distribute aid and loans to the rest of the world. It can be stated with responsibility that these claims were made by conniving politicians only to mislead the public into voting for them.
Unknown to these politicians are the brilliant minds across the world who are developing blockchain; a technology which is heralded as the greatest invention since the Internet. Blockchain is called the ‘leapfrogging’ technology because of the promise it offers for countries like Pakistan - to launch them into the first world.
Blockchain is the technology behind Bitcoin and all other crypto-currencies which are currently banned in Pakistan and this is the reason why the public believes that blockchain is something illegal. Still, blockchain is to Bitcoin what the Internet is to WhatsApp. Banning blockchain for illegalities attributed to Bitcoin is like attempting to ban the Internet simply because people are using WhatsApp to order booze from bootleggers. Nonetheless, the power of blockchain has been realised by many countries around the world. Countries as advanced as Japan and as poor as Zimbabwe are attempting to usher in a new era of development using this technology.
Blockchain can be a success story for Naya Pakistan if the government embraces it and takes a lead in implementing blockchain technologies. Pakistan is a young country and its primary impact of such a move would be felt in areas where maximum participation is needed from the Pakistani youth. Some of the key areas where blockchain could make a significant difference are:
Remittances
A primary sources of foreign exchange is the nearly $20 billion in remittances being sent to Pakistan. For our economy and remittances to grow, we could embrace blockchains and cryptocurrencies since the current legal methods are cumbersome (taking about three to five days) and expensive (taking away five percent of the amount sent). These slow and expensive transfers are accompanied by volatility of the Pakistani rupee and inconvenience caused by banks and FATF requirements. A State Bank-approved cryptocurrency could completely change the remittance experience by making it faster, cheaper and more convenient. This on-demand liquidity tool for overseas Pakistanis can help them channel money back to Pakistan at a fraction of fiat-to-fiat exchange and considerably affect our foreign exchange.
Corruption
On September 8, a plaza in Lahore caught fire and records of the Saaf Paani Project were destroyed. This is after paper records of Metro and Orange lines were also destroyed in fires. Some of the most famously ‘corrupt’ figures in Pakistan, including a former president, were acquitted by courts because recorded evidence disappeared. Blockchain offers a cheap, transparent, time-stamped, traceable, un-hackable system of records. Its application is so widespread that it can be used for any kind of records such as contracts, bills, accounts, and ownership records. Ghana is shifting its entire land registry system to blockchain and Georgia, after having already done so, is now putting up electoral records.
Poverty reduction
The internet started off with a promise of being an equaliser for people as one did not need to be rich in order to benefit from the world-wide web. However, over time, the internet was taken over by the large corporations. Blockchain is a reset button which offers another chance to play on an even ground. Blockchain is the only system that currently allows for universal financial inclusion by allowing the poorest to possess accounts and operate them without banks dictating the terms. Where no bank would cash a cheque of Rs100, cryptocurrency allows for one to get even Rs1 back. Cryptocurrencies present a huge opportunity to empower and connect people who have been ignored by our banking and legal systems. The system can help in monetising microtransactions and enable trading and lending on a micro scale which was previously the forte of only wealthy stock owners. The system can also be used by farmers to keep records of their lands, inputs, and outputs. These lands can then be consolidated and fractional ownership of expensive farm equipment can be created to allow for industrial agriculture and enhanced production and subsequent returns.
Fair elections
In elections 2018, there many allegations of widespread fraud and rigging. There were allegations of double stampings, lost votes, counting errors, fake votes and just about every other type of voter fraud that exists. Nearly all major parties have alleged that the elections were unfair. In addition to voter fraud, the ECP is still tackling the difficult problem of overseas Pakistanis being allowed to vote. This is where blockchain can shine because it offers systems where voters can vote through their mobiles and have traceable and publically counted votes can usher in greater democracy and public participation. A vote cast once would be tamper-proof and allow for real-time voting and referendums without any doubt that the results could be changed by anyone. This system could bring in the most important change of knowledge and skill preference over money and muscle for the voters.
Energy
The biggest reason attributed to low industrial and commercial growth in Pakistan is the energy crisis. However, the Pakistani public constantly demands solutions from the governments for an energy crisis that can be fixed by citizens themselves. We lose 40 percent of our energy to the huge NTDC grid and old cables and now a much easier and cheaper option could be micro-grids in rural areas where energy can be generated by renewable methods like solar, wind, biogas and even microturbines. The real problem is regulating and monetising these microgrids which is why individuals have not chosen to invest in energy generation and selling it to others. Blockchain can solve this problem by keeping immutable records of peer-to-peer energy transfers and organising the generation and consumption of energy on a microgrid.
Blockchain is still in its infancy but the technology is fast, cheap and transparent which gives us means of skipping the queue and becoming a developed country faster. It can create jobs, opportunities, more money, and as with the early internet, give more voice to the people. China has already started spending billions on blockchain developments and judging by Chinese IT job opportunities for Pakistani IT engineers, it is blockchain that seems to be the greatest demand. For Pakistan, Blockchain could cause another brain drain or provide chance to finally catch up with modern times. Let us see what we do with it.
Unknown to these politicians are the brilliant minds across the world who are developing blockchain; a technology which is heralded as the greatest invention since the Internet. Blockchain is called the ‘leapfrogging’ technology because of the promise it offers for countries like Pakistan - to launch them into the first world.
Blockchain is the technology behind Bitcoin and all other crypto-currencies which are currently banned in Pakistan and this is the reason why the public believes that blockchain is something illegal. Still, blockchain is to Bitcoin what the Internet is to WhatsApp. Banning blockchain for illegalities attributed to Bitcoin is like attempting to ban the Internet simply because people are using WhatsApp to order booze from bootleggers. Nonetheless, the power of blockchain has been realised by many countries around the world. Countries as advanced as Japan and as poor as Zimbabwe are attempting to usher in a new era of development using this technology.
Blockchain can be a success story for Naya Pakistan if the government embraces it and takes a lead in implementing blockchain technologies. Pakistan is a young country and its primary impact of such a move would be felt in areas where maximum participation is needed from the Pakistani youth. Some of the key areas where blockchain could make a significant difference are:
Remittances
A primary sources of foreign exchange is the nearly $20 billion in remittances being sent to Pakistan. For our economy and remittances to grow, we could embrace blockchains and cryptocurrencies since the current legal methods are cumbersome (taking about three to five days) and expensive (taking away five percent of the amount sent). These slow and expensive transfers are accompanied by volatility of the Pakistani rupee and inconvenience caused by banks and FATF requirements. A State Bank-approved cryptocurrency could completely change the remittance experience by making it faster, cheaper and more convenient. This on-demand liquidity tool for overseas Pakistanis can help them channel money back to Pakistan at a fraction of fiat-to-fiat exchange and considerably affect our foreign exchange.
Corruption
On September 8, a plaza in Lahore caught fire and records of the Saaf Paani Project were destroyed. This is after paper records of Metro and Orange lines were also destroyed in fires. Some of the most famously ‘corrupt’ figures in Pakistan, including a former president, were acquitted by courts because recorded evidence disappeared. Blockchain offers a cheap, transparent, time-stamped, traceable, un-hackable system of records. Its application is so widespread that it can be used for any kind of records such as contracts, bills, accounts, and ownership records. Ghana is shifting its entire land registry system to blockchain and Georgia, after having already done so, is now putting up electoral records.
Poverty reduction
The internet started off with a promise of being an equaliser for people as one did not need to be rich in order to benefit from the world-wide web. However, over time, the internet was taken over by the large corporations. Blockchain is a reset button which offers another chance to play on an even ground. Blockchain is the only system that currently allows for universal financial inclusion by allowing the poorest to possess accounts and operate them without banks dictating the terms. Where no bank would cash a cheque of Rs100, cryptocurrency allows for one to get even Rs1 back. Cryptocurrencies present a huge opportunity to empower and connect people who have been ignored by our banking and legal systems. The system can help in monetising microtransactions and enable trading and lending on a micro scale which was previously the forte of only wealthy stock owners. The system can also be used by farmers to keep records of their lands, inputs, and outputs. These lands can then be consolidated and fractional ownership of expensive farm equipment can be created to allow for industrial agriculture and enhanced production and subsequent returns.
Fair elections
In elections 2018, there many allegations of widespread fraud and rigging. There were allegations of double stampings, lost votes, counting errors, fake votes and just about every other type of voter fraud that exists. Nearly all major parties have alleged that the elections were unfair. In addition to voter fraud, the ECP is still tackling the difficult problem of overseas Pakistanis being allowed to vote. This is where blockchain can shine because it offers systems where voters can vote through their mobiles and have traceable and publically counted votes can usher in greater democracy and public participation. A vote cast once would be tamper-proof and allow for real-time voting and referendums without any doubt that the results could be changed by anyone. This system could bring in the most important change of knowledge and skill preference over money and muscle for the voters.
Energy
The biggest reason attributed to low industrial and commercial growth in Pakistan is the energy crisis. However, the Pakistani public constantly demands solutions from the governments for an energy crisis that can be fixed by citizens themselves. We lose 40 percent of our energy to the huge NTDC grid and old cables and now a much easier and cheaper option could be micro-grids in rural areas where energy can be generated by renewable methods like solar, wind, biogas and even microturbines. The real problem is regulating and monetising these microgrids which is why individuals have not chosen to invest in energy generation and selling it to others. Blockchain can solve this problem by keeping immutable records of peer-to-peer energy transfers and organising the generation and consumption of energy on a microgrid.
Blockchain is still in its infancy but the technology is fast, cheap and transparent which gives us means of skipping the queue and becoming a developed country faster. It can create jobs, opportunities, more money, and as with the early internet, give more voice to the people. China has already started spending billions on blockchain developments and judging by Chinese IT job opportunities for Pakistani IT engineers, it is blockchain that seems to be the greatest demand. For Pakistan, Blockchain could cause another brain drain or provide chance to finally catch up with modern times. Let us see what we do with it.