Sustainable and scalable use of Blockchain technology in development cooperation
At a glance
Blockchain technology is a novel form of data storage. Transactions are processed, verified and stored in a growing list by a distributed network of computers. This achieves a high level of data security and transparency. Transactions can be any kind of information, such as financial transactions, contracts, shares or land register entries.
Thanks to these advantages, blockchain technology offers a wide range of application scenarios. The GIZ Blockchain Lab, established in 2018, tapped into these application scenarios and the transformative potential of blockchain and related technologies. It focused on exploring the added value of the most promising Blockchain applications for sustainable development goals and in terms of their technical, economic and legal feasibility. Within German development cooperation, for example, blockchain technology can help to make supply chains and administrative processes more transparent, reduce corruption and make the use of financial resources more traceable.
So far, however, there are hardly any scaled, sustainable blockchain solutions in partner countries and global ecosystems. A core problem remains that many actors are not able to design the use of blockchain technology in a sustainable way. At present, hardly any local innovations in the field of blockchain are taking place in developing and emerging countries.
The target group includes key actors in selected partner countries who will be involved in the application of blockchain solutions in the future. Political decision-makers are sensitised with regard to the creation of preconditions for a sustainable design of blockchain solutions. Capacities of tech entrepreneurs and civil society actors (e.g. think tanks, non-governmental organisations) are strengthened regarding the necessary hard and soft skills for the development and application of sustainable blockchain solutions as well as opportunities for political participation.
Blockchain Partnerships aims to strengthen the competencies of selected actors in the digital ecosystem regarding the sustainable use of blockchain technology. An essential component is that strengthened capacities of selected actors such as political decision-makers, tech entrepreneurs and civil society from partner countries lead to them critically examining the applicability of blockchain technology in local contexts and being able to shape (preconditions) sustainably. Another essential component is capacity development measures that address changes in the social framework and strengthen local competencies. These factors are essential prerequisites for using the disruptive potential of blockchain technology effectively and efficiently for the economy and society in selected partner countries.