HOW CAN BLOCKCHAIN CONTRIBUTE TO DEVELOPING COUNTRY ECONOMIES? A LITERATURE REVIEW ON APPLICATION AREAS

Abstract

Blockchain technology originally finding applications in Fintech and supply
chain management is rapidly expanding applications to other industries as well
as the public sector. “Blockchain has been compared to the invention of the
internet and its comprehensive impact on almost every industry.” R. Beck and B.
Markey-Towler (2017) A recent study by PWC (2020) found that, “Blockchain
technology has the potential to boost global gross domestic product by $1.76
trillion USD over this decade.” It has been argued that the digital revolution has
favored more developed nations and that has helped create a “digital divide” with
less developed nations. Business and governmental infrastructure in developing
nations have lagged that of more developed nations. Some of these challenges faced
by developing nations include the registration of property ownership, financial
systems, modern efficient supply chains often accompanied by a lack of trust and
the ability to verify and audit organizational processes rapidly and economically.
Blockchain technology has the promise to address many of the critical needs of
developing countries internally and in external trade relationships to help enable
them to be more competitive. This paper will review the literature and examine
the impact of Blockchain technology on how its adoption may ameliorate many
of these critical challenges for developing nations helping to improve governance
and economic benefits that are shared more equitably. Potential for both positive
and negative impacts with be discussed along with policy implications for public
policy makers and private enterprises.