Nigerium, as a platform handling potentially sensitive data, must adhere to thedata protection laws of the land. This involves obtaining user consent, ensuring data security, and implementing robust measures to prevent data breaches. Blockchain’s inherent transparency can pose challenges to data privacy, necessitating careful consideration of data anonymization and access controls.
Introduction
Blockchain technology has been on the scene of some major technological breakthroughs and innovations in the world today. Blockchain is the underlying technology behind innovations and concepts such as web3, the metaverse, cryptocurrency in all its forms, smart contracts, DAOs, etc.
Blockchain technology operates as a decentralised digital ledger, where information is recorded in blocks, linked together using cryptography. This structure renders the data virtually immutable, transparent, and secure.
The potential applications of blockchain are vast, spanning finance, healthcare, supply chain management, and beyond. Its ability to create secure, transparent, and traceable records has the power to revolutionize how we conduct business, run administration and manage information.
Why Does Nigeria Need an Indigenous Blockchain?
According to Markets and Markets, The Blockchain Technology Market size is expected to grow from 20.1 Billion in 2024 USD 248.9 Billion by 2029, poised to grow at a compound annual growth rate (CAGR) of 65.5[1]. Also, PwC estimates that blockchain could generate $1. trillion in value by 2030[2].
Nigeria, with its large population and growing digital economy, stands to benefit significantly from adopting blockchain technology. Nigerium represents a strategic step towards embracing this transformative technology and positioning Nigeria as a leader in the blockchain space.
It is also important to note that Nigerium can be useful and focused in certain sectors of the economy such as the land Registry, healthcare, investment sector, public procurement, voting systems, and supply chain management.
Depending on the use case for Nigerium, I believe that an Indigenous blockchain can foster innovation and entrepreneurship by creating digital products hosted on the blockchain – safe, secure and transparent.
Also, Nigerium can be instrumental to the realization of the maritime single window in Nigeria.
Technical Considerations for Nigerium
Consensus
The choice of consensus mechanism for a government-owned blockchain is important. Some of the issues to consider include security, performance and centralisation.
Security: A government-owned blockchain likely handles sensitive data, necessitating a highly secure consensus mechanism. Proof-of-Work (PoW) offers robust security but is energy-intensive. Proof-of-Stake (PoS) is more energy-efficient but might require careful design to prevent centralization risks.
Performance: The blockchain should be able to handle a high volume of transactions efficiently. Mechanisms like Delegated Proof-of-Stake (DPoS) or Practical Byzantine Fault Tolerance (PBFT) can offer better performance but might compromise decentralisation.
Centralisation: A government-owned blockchain might lean towards a more centralised consensus mechanism to ensure control and compliance. However, excessive centralisation can undermine the core principles of blockchain.
Permissioning
A government-owned blockchain typically adopts a permissioned model, where access is restricted to authorised participants. This approach offers greater control and security but can limit decentralisation.
Key considerations for permissioning include Identity Management: A robust identity verification system is essential to manage access and prevent unauthorised participation. Governance and Data Privacy.
It is important to note that a hybrid approach combining elements of public and private blockchains could be considered. This would allow for some degree of public participation while maintaining government control over sensitive data across the chain.
The Legal Landscape of Nigerium
The legal framework surrounding Nigerium is a critical component of its successful implementation. Blockchain technology, while revolutionary, operates within an existing legal ecosystem. Several key legal considerations must be addressed:
Data Privacy and Security
Nigerium, as a platform handling potentially sensitive data, must adhere to thedata protection laws of the land. This involves obtaining user consent, ensuring data security, and implementing robust measures to prevent data breaches. Blockchain’s inherent transparency can pose challenges to data privacy, necessitating careful consideration of data anonymization and access controls.
Regulatory Sandbox
To encourage innovation while mitigating risks, Nigeria could consider establishing a regulatory sandbox for blockchain-based businesses. This would provide a controlled environment for testing new products and services.
International Law
As blockchain is inherently global, Nigerium’s operations may intersect with international laws and regulations. Cross-border transactions, data transfer, and jurisdiction issues will require careful consideration.
Conclusion
The potential of an indigenous blockchain platform to transform governance, economy and security cannot be over-emphasised. Nigerium, a strategic national initiative, holds the promise of revolutionising Nigeria’s digital landscape. To fully realise its benefits, effective collaboration among government agencies, the private sector, and academia is important.