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In the verification and validation stages of software development, practitioners check to make sure the software is delivered bug-free, and that it meets the requirements it must satisfy. But rarely do software practitioners examine the bigger picture-the quality impacts that a class of technologies might have on societies and economies. This article does just that, taking a step back to address the larger-scale business and social value of cryptocurrencies and other blockchain-based systems, emphasizing their unique value proposition in emerging economies. By improving the quality, reliability, and audit-ability of key processes that impact national economies, blockchain - base d systems have the potential to improve acress to energy, banking, and access to the developed world.
KEY WORDS
blockchain, cryptocurrency, emerging economies, value
INTRODUCTION
Cryptocurrencies are digital and decentralized assets, encrypted and transferred between peers. In most cases, they are not backed by tangible value stores (such as gold) or government agencies (such as the Federal Reserve); this lack of centralization has been indicated as one of the key strengths of cryptocurrencies. Cryptocurrencies are implemented using blockchains, which are novel data structures that capture a shared, digital ledger in which all parties agree to transactions before they are stored, and all parties own a full copy of the ledger (Benton and Radziwiłł 2017), Although brought to prominence by Bitcoin, blockchain-based systems could support use cases well beyond cryptocurrency, including identity management, secure voting, and data-driven supply chain management.
To understand the implications of blockchain, it is imperative to start with its first successful use case: cryptocurrency. While cryptocurrency is the subject of most of the publicity surrounding blockchain, the impacts of blockchain stretch far beyond currencies and exchanges, affecting industries such as energy and shipping, and applications such as identity management and voting.
This article examines the relationship between cryptocurrencies and blockchain-based technology from the perspective of emerging economies, an approach that can highlight the constructs required for successful blockchain-based innovation in any country. Developing economies are positioned to capture opportunities emerging from this new technology, particularly since social structures, the nature of governance, and the availability of infrastructure represent unique challenges. For example, similar to the growth of China's economy starting in the mid-1990s, sub-Saharan Africa is expected to experience economic growth through direct...