Revolutionizing Microfinance in India with Blockchain Technology

The lack of banking services for the poor is a major obstacle in developing India, with about 20% of the population not having a bank account. Credit is a powerful tool that, when done right, can double the income of the poorest in the country. However, the current banking system has not been able to provide financial services to the lower-income people. The solution lies in a breakthrough innovation that's happening in Africa, using the revolutionary blockchain technology. Ethiopia is collaborating with IOHK, the parent company of the blockchain called Cardano, to build a robust identification system that will redefine the way banking is done in Africa. The blockchain technology will enable microtransactions to compute the credibility of the person, enabling the system to determine the creditworthiness of an individual. The lessons from this case study are that the citizens of India at the bottom of the pyramid desperately need a reliable microfinance system, the system of micro-lending needs to be treated as a pipeline to empower the poor, and India needs to start experimenting with blockchain technology, which can give us the superpower to transform the lives of the poorest in India.