Have you every looked at money and wondered how long it has been circulating, where all it has been, and within whose hands it has travelled? Additionally, how many of us have been on the receiving end of counterfeit money that made its way through money channels without being noticed? All of the money we’ve ever handled has a place in history that is unique to the time, location, and particular transactions that got it into and out of our possession. If any currency we’ve ever possessed acquired an updated time, place, and transactional history stamp when we received it, the same can be said about ANY currency transaction of any type, in any place, at any time, by anyone. These simple musings about the travels of modern coin and paper-based ( fiat ) currency can be used to gain an abstract ( albeit imperfect ) understanding of what cryptocurrency is. More importantly, an understanding of cryptocurrency and blockchain technology is a precursor to appreciating what role they will play in making mineral-rich yet impoverished countries become wealthy over time.
Most of the world’s people are unbanked and have no access to documents that can be trusted as being valid. This stifles economic development, because without a trustworthy credit history, proof of credit worthiness, and proof of identity, many individuals and would-be business persons within impoverished nations have no chance to participate in national and international business dealings. Furthermore, the activities of international crime syndicates that have infiltrated poor countries further complicate the oftentimes unstable and volatile banking industries within such countries. Counterfeiting and/or theft of money by organized crime syndicates and/or corrupt government employees and private sector officials further ensure that billions of people born into abject poverty have no chance whatsoever to better their circumstances. As a consequence, citizens of impoverished countries are at the mercy of predatory practices and procedures routinely carried out by the World Bank and International Monetary Fund ( IMF ) on a global scale. Fortunately, Charles Hoskinson’s visionary development of the Cardano ( ADA ) smart-contract blockchain and associated cryptocurrency will deal a crushing blow to the worldwide economic stranglehold that central banks have upon the developing world.
Let’s now imagine that a person is the recipient of a freshly printed dollar bill. In order to cut down on counterfeiting, a mechanism has been put into place to ” tag ” every dollar in circulation with a history. Whenever and wherever the dollar is spent, the spender gets a receipt of the transaction; however, the vendor and countless third-party ” miners ” also receive a copy of the sales receipt. Since the vendor is too busy tending to business, s/he relies upon the third-party members to maintain the growing ” block ” of receipts added to the dollar’s history each time it is involved in a transaction. This activity is competitive, and despite the fact that all miners receive copies of the dollar’s block of transaction receipts, only one ( or a small team ) of miners will get paid for successfully solving a math puzzle that is needed to authenticate the process.
Let’s now assume that the aforementioned dollar-holder and an anonymous person both owe someone a dollar. After each person has given a dollar to the lender, the lender discovers that one of the bills is counterfeit; however, the consensus among miners around the world is that the the blockchain records of the aforementioned spender are legitimate. The world of cryptocurrency could not exist if cybercriminals could create it outside of the presence of decentralized ” point-of-sale ” checks and balances.
To make things even better, ” smart contracts ” will enable inputs regarding place, time, person, and transaction information to be added to a blockchain without the assistance of human beings. Let’s assume that the Honorable Dr. Daniel Cassell of the People’s Liberation Party ( PLP ) wins the 2023 Liberian Presidential Election. Working in conjunction with the Prof. P.L.O. Lumumba Anti-Corruption Commission stationed in Kenya, initiatives to create employment opportunities for masses of people within the agricultural industry could be put into motion. The long-term goal would be the elimination of middle-men from Liberian affairs and the eventual elimination of corruption anywhere else it can be found.
Under the above scenario, a contract to pay a farmer a quantity of stablecoins such as Tether ( USDT ) could instantly take place after the conditions of a contract have been met. If the farmer has no credit history ( or much of anything else ), an agreement can be made that he ( or she ) must pay the principle and the interest on the loan IN FULL AND UP FRONT when the contract obligations have been met. For example, if the farmer wants a $10,000.00 loan to grow cocoa beans, and the loan agreement is to pay 7% interest on the loan, the farmer would be obliged to grow an amount of crops valued at $10,700.00. Once all of the contract conditions are met, the lender and borrower’s wishes will be fulfilled instantaneously.
As the crops grow, high tech sensors in the environment can monitor the growth of the cocoa plants, the automated watering and irrigation of the soil, autonomous drone inspections, and the harvesting of the plants. Once predetermined milestones have been met, they are sequentially recorded within a blockchain, and when all of the conditions of the contract have been satisfied, the formerly unbanked, poor farmer will now receive an instant payment of $10,000.00 for a loan that has already been paid in full.
Needless to say, the age of cryptocurrency is still in its infancy. Nonetheless, due to the work of individuals such as Charles Hoskinson with his Cardana ( ADA ) projects, the work of the Honorable Dr. Daniel Cassell and the Dr. Cassell Charity Foundation, and the tireless work of Prof. PLO Lumumba ( of Kenya ) all across the African Continent, the prospects of economic growth and expansion in Africa and the rest of the unbanked world are without limits!
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