BLOCKCHAIN IMPACT AT FINANCIAL INCLUSION

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A good day to you all members of this great community, it is a honor to be participating in this contest which is hosted by @khursheedanwar a moderator in this community, the title of this contest is "blockchain impact at financial inclusion", but before I go on to answer the designated question for this contest I want to first talk about blockchain technology and then financial inclusion.

With that being said let us proceed, blockchain can simply be defined as a decentralized and secure digital ledger that records transactions across multiple digital devices, networks and systems, the blockchain is so secure that its id said to be immutable and tamper proof not only that, It facilitates and ensures transparency and trust by eliminating the need for intermediaries, it was initially created to facilitate the operations of cryptocurrency.

Next, financial inclusion, this words or term refers to the availability and accessibility of affordable financial services such as savings, credit, payments, and insurance basically to individuals and businesses, especially to those who owing to one or two barriers or challenges could not access these services, financial inclusion aims to break these barriers and ensure that everyone can gain access to financial services as well as the opportunity to participate in the economy.

WHAT IS IMPACT OF BLOCKCHAIN AT FINANCIAL INCLUSION

After successfully discussing and explaining what blockchain and financial inclusion are I will now go on to answer the question what is impact of blockchain at financial inclusion not only that, I will also briefly discuss three of the significant ways in which the blockchain impacts financial inclusion.

Blockchain impact at financial inclusion simply refers to the effects whether positive or negative, or advantageous or disadvantageous the application or implementation of the blockchain and its technology will have on financial inclusion so with advanced features like decentralized, immutability, security and efficiency just to mention a few let see some of the impacts blockchain at financial inclusion.

The implementation and application of blockchain basically facilitate a significant increase in financial access first of all for the unbanked seeing as through its decentralized platforms blockchain is able to enable savings, payments, and loans or lending of money without requiring a traditional bank account as a result it removes and breaks the barriers of having to start documentation and the cost required it therefore impacts financial inclusion in this way and encourages more participants.

The traditional cross border transactions or even any transactions done with the traditional banks usually involve very high fees even days when I don't perform any transactions with my traditional bank account I am still charged with maintenance fees, sometimes I open my bank app and begin to see -150 naira for this high charges many do not participate or make use of financial services but when the blockchain is implemented these ones can use blockchain based payment systems seeing as it helps significantly reduces transaction costs, this is a second significant impact of blockchain at financial inclusion.

With the implementation and application of blockchain we have also blockchain based lending platforms which offer microloans and credit services without using credit scores or even requiring collateral also, by using decentralized finance (DeFi) protocols, individuals can access loans through smart contracts, with lending terms enforced automatically all these facilitate financial inclusion.

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CONCLUSION

In conclusion I would like to thank again the host of this contest @khursheedanwar this is really a lovely contest topic, the blockchain technology although created to facilitate the function of cryptocurrency has outgrown that role and now it is playing a much bigger role one of which is transforming and advancing financial inclusion by basically providing accessible, low cost, and decentralized financial services.

I would like to invite @arroise, @kafio @jueco to come and participate in this contest.