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How Nigeria is Leading the Way in Web3 Adoption
Nigeria's current state in Web3 technology.
The Internet has brought about various technological advancements in the world, impacting the sectors of transportation, health, education, and even finance. Currently, the world is moving fast in the scaling and adoption of Web3 and artificial intelligence. This article explores Web3 and related developments in Nigeria.
What even is Web3?
You might be asking "Wait there's Web1 and Web2?''. Yes, there's Web1 and Web2. Web1 which was the internet in the 90s was read-only, meaning that information was available for people to read only; lacking the ability to interact that is liking, commenting, and sharing as we know it today.
Web 2, which we still use today, has read/write abilities, unlike the read-only Web1. In Web 2, the Internet is dominated by large platforms that provide services in exchange for user data which is monetized by these corporations and has little to zero returns for end-users. An honorable mention is that Web 2 is largely powered by JavaScript and JavaScript frameworks.
In the light of the heavy centralization characterized by Web 2, A quest for a decentralized web was formed et voila: Web3. Web3 aims to create a user-centric web, promoting decentralization, and putting the user in control through blockchain technology. Web 3's biggest selling points are the privacy and interoperability it provides for its users. James in Sweden can now send cryptocurrency to Wale in Lagos, Nigeria and it will be received in a fraction of a minute.
DeFi and Web3 In Nigeria.
One of the significant innovations brought by Web3 is Decentralized Finance (DeFi), which has revolutionized Traditional Finance. Traditional Finance (Trad-Fi) relies on banks and online banking to operate. Web3 has put the bank in your hands (non-custodial wallets) giving you full custody of your money. DeFi allows you to do most things you do at the bank, but on-chain. For a deeper understanding of DeFi, you can read more here.
According to the 2023 Chainalysis Global crypto adoption index, Nigeria is ranked second in the adoption of web3. Web3 adoption in Nigeria is mostly at a retail level; Most centralized exchanges are available to use. Binance, kucoin, and OKX are the major Centralized exchanges operating in Nigeria.
One can say that Web3 is in its early stages in Nigeria; not much has been built with Web3. Peer-to-peer platforms (P2P) and payment solutions are the major innovations in web3 in Nigeria. P2P platforms like Binance, OKX and Noones have been used by Nigerians to trade their cryptocurrencies for cash. Some dollar card payment solutions now allow users to use cryptocurrencies to fund their dollar cards.
Web3 and Government Policies.
The Nigerian government's stringent policies have also impacted crypto trading and Web3 activities, creating a challenging environment for enthusiasts and developers. The Central Bank of Nigeria (CBN) earlier this year placed a ban and is still blocking bank accounts suspected of crypto trading. Binance suspended its P2P platform some months back with the ongoing investigation, detainment, and trial of Binance executives in Nigeria.
This development has spawned different arguments on whether the Nigerian government is handling crypto regulation in the best way possible. Nigerians can only hope for the best outcome.
Web3 Narratives in Nigeria.
Web3 in Nigeria has had some notable narratives in the past few months ranging from Social-fi, Play-to-earn, and currently Tap-to-earn which users have made significant gains.
The earlier part of the year saw the trend of Social-Fi with tokens like $param, $gmrx, and $bubble which required users to complete tasks on social media platforms to get rewarded.
P2E on the other hand requires users to play games to get rewarded. Games like Pirate Nation and Heroes of Mavia took the spotlight during this Meta (Another term for narratives.)
Currently, Many Nigerians are very active on the Tap-to-earn meta following the success of Notcoin. A tap-to-earn game where all you had to do was tap on your screen. The game was hosted on a telegram bot and the token was launched on the TON blockchain.
The success and gains users made from notcoin pioneered the T2E meta. You see Nigerians in Buses, Banks, and other spaces tapping continuously on their phones playing tap to earn games like Blum and Hamster. Will these other tap-to-earn games perform well like $notcoin? We can’t tell, we’ll see how it plays out.
What are Devs in Nigeria Up To?
Nigeria has had notable Web3 developer activity for a while now. Web3Bridge commenced its Cohort XI to train Web3 developers and Web2 developers looking to transition to web3 development. Web3Bridge is also making preparations and receiving sponsors for Web3LagosCon2024.
Nigerian devs are also winning grants and hackathons. Last Week, Starktrade A Starknet trading bot received grants from the Starknet Foundation. Solana also announced its radar global hackathon set to commence in September and end in October. The hackathon is powered by Colosseum.
Jesse Pollak, Creator of Base blockchain in a tweet this week commended the Base Africa team and the good work they’re doing onboarding new users to web3 in Africa.
Conclusion.
Nigeria has barely scratched the surface with the vast potential blockchain technology has to offer. With more Devs entering blockchain development and more people getting onboard, and with continued innovation and supportive policies, Nigeria stands a chance to become a leader not just in Web3 Adoption but also in technology Implementation. We remain excited about what Nigerian builders have in store for us.