Rebuilding the identity of the Africans with the help of Blockchain

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Have you always wonder why we often need to show our valid IDs when making transactions or processing important documents? But have you also wonder what could be the effect on the citizens who do not have identification documents?

Identification documents have been necessary records for us since we frequently need them to process information. The first document we acquire when we are born is our birth certificate. And as we grow older, we tend to need more identification documents or cards. These papers are essential for us to receive different benefits from the government. Aside from that, it also prevents corruption because the citizen will give their trust to the government when they receive enough support and security from them. However, most African countries are still struggling to have their valid IDs and other documents, so how can we help them solve it?

According to research, a study by the World Bank's Identification of Development (ID4D), 40% of people in the world who lack ID validation is living in Africa that may result in exclusion. It is also added that they have the lowest birth registration rates. And while the other countries are adopting the digital and innovative system, some African countries have not yet acquired it.

A study mentioned several barriers to why some of these countries are still struggling to have access to the identification system.

• Users find the cost for civil registration and identification as expensive. There is a cost for processing every late birth registration and national IDs, which often cause barriers for the users.
• Complicated legal and administrative procedures are also one of the factors that put the burden on the people.
• Since there is a lack of technological adoption, destruction, and loss of paper documents are also one of the common problems they have. The government or their copies of paper-based documents often get lost due to different instances like natural disasters.
• Geographical challenges are also visible in some African countries. There are ongoing conflicts or some places are hard to access especially in rural areas, and it makes it hard for some citizens to travel from one place to another.
• Not everyone prefers having valid identification cards since they find it not useful because of either belief conflicts or different cultural practices, that is why there is a lack of demand.

Who is FlexFinTx

Back in 2018, Victor Mapunga tried to register a bank account in Zimbabwe but to his shocked, the form he needs to fill is too long that even payslip or proof of residence is required to finish his registration. The country has a 90% unemployment rate who does not have those documents. It might take 48-72 hours before completing the registration and can also take a month for people in rural areas. And this made them create FlexFinTx.

FlexFinTx is a company that created the FlexID, which aims to rebuild the identity of millions of Africans through digital identity. FlexID is a verifiable digital identity built on the Algorand blockchain. Since it is built on a decentralized blockchain, it does not need any central authorities or middleman that allows individual users to have the full control that they can use anytime.

Using FlexID, it will give the benefit of the following:

• It is easy since you can register through their WhatsApp chatbot that will only take a few texts to register.
• It is self-sovereign that gives all control to the users. Even the data will remain secure.
• It ensures the security of their identity since it is backed on the Algorand blockchain.
• It will also help Africans to get access to various industries such as the government, financial institution, health care system, telecom, and even in the agricultural sectors.

The role of Algorand

Algorand is the next-generation blockchain that uses permissionless, and pure proof of stake mechanism. Algorand ensures security, transparency, scalability, and decentralization. With this, data recorded in the blockchain will remain tamper-proof that ensures a more secure database than a centralized entity.

Haardik, the CTO and Co-Founder of FlexFinTx said that “FlexID aims to solve these issues by giving control back to the user, and building out a fully decentralized identity system - made possible only due to blockchain technology. Users will have full control over what data they share and with whom." He also added, “Additionally, there is no central server which stores all the data, thereby increasing the overall security of the system manifold compared to today’s systems. Lastly, it enables organizations to provide a faster, easier, and cheaper service to its users”.

Technological innovation is rapidly growing, yet not every country or everyone can experience the same level of development. There are individuals around the world who are struggling with their daily lives because there are factors that are limiting them for having an alleviated way of living, and one of that is identity.

Most African countries have a lack of identity records that often hinder them from the benefits they should have like healthcare, banking, and insurance system. But with the initiative and creation of FlexFinTx and FlexID, it will help millions of people in Africa to rebuild their identity. The users can gather their credentials even without the internet that will bring awareness, inclusion, technological innovation, and identity to them all at once.




References:
Reference 1, Reference 2, Reference 3