First Dedicated Nigerian Blockchain Hub Launches In Abuja
First dedicated Nigerian blockchain hub launches in Abuja
On Saturday, May 8, 2021, in Abuja, Nigeria's capital city, the first dedicated Nigerian blockchain hub, Convexity Blockchain Hub (CBHUB), was inaugurated.
Representatives from the Central Bank of Nigeria (CBN), the National Information Technology Development Agency (NITDA), and the Nigerian Blockchain Technology Association (NBTNA) attended the event (SIBAN).
Adedeji Owonibi, founder of CBHUB, says the goal is to create an ecosystem where people can come and focus exclusively on blockchain technology, a space to innovate and create solutions within Nigeria using blockchain.
According to Owonibi, the hub will provide blockchain solutions unrelated to cryptocurrency.
Many Nigerians are unfamiliar with the Nigerian blockchain technology ecosystem. It is frequently confused with the more well-known cryptocurrency subset.
While Bitcoin and other cryptocurrencies are well-known applications of blockchain, it can also be used for other purposes, such as the ones provided by CBHUB.
These solutions range from its Convexity Humanitarian Aid Distribution Solution (Chats), which aims to increase transparency in the aid distribution space, to BitCert, one of the company's initiatives aimed at reducing certificate counterfeiting in schools.
As of the time of its launch, CBHUB had partners in Lagos and also supported communities in Northern Nigeria by offering classes in the Hausa language.
This is in stark contrast to the announcement in 2018 by Paxful, a leading peer-to-peer cryptocurrency exchange, that it would open a blockchain incubator hub. Chimezie Chuta, the founder of the Blockchain Nigeria User Group, was to lead this hub (BNUG).
According to Chuta, the company was not convinced of the initiative's viability as a self-sustaining business after reviewing the information provided. Paxful ultimately decided to shut down.
Africa's first cryptocurrency forensics laboratory
On Saturday, the event also saw the launch of Africa's first crypto forensics lab. The lab features state-of-the-art facilities and is the result of a collaboration with Chainalysis, a global leader in the field of cryptocurrency forensics.
According to a Chainalysis 2021 Crypto Crime Report, Mirror Trading International (MTI), based in South Africa, is the largest cryptocurrency investment scam of 2020.
From July 2019 to June 2020, illicit cryptocurrency trading accounted for just 2% of Africa's $16 billion trading volume, with scams accounting for 55% of this low level of illicit activity.
While Africa has the lowest rates of illicit cryptocurrency trading globally, the establishment of the CBHUB's crypto forensics lab is another step forward in the fight against crypto scams such as MTI.
Contrary to popular belief, despite the technology's relative anonymity/pseudonymity, there are ways to connect blockchain users' identities.
Personal Identifiable Information (PII) can be aggregated from crypto exchanges, laptops, and phones used to interact with blockchain technology, according to Owonibi.
The hub will provide critical tools for crypto-crime investigators and security agencies that are constantly confronted with numerous obstacles while investigating cryptocurrency-related crimes and illicit money transaction activities.
All that is required of investigators is retraining and upskilling in the use of these tools, according to Chuta.
Convexity, truly the first?
While CBHUB is undoubtedly Nigeria's first dedicated blockchain hub, it is not the country's first blockchain hub. Samuel Benedict Ogbonnaya founded Blockchain Tech Hub in 2015.
According to its LinkedIn profile, it "was founded with the goal of pioneering Blockchain innovation in Africa by training and developing the continent's most qualified Blockchain developers."
The Blockchain Tech Hub, on the other hand, is no longer operational; a link to its advertised website redirects to a "This site cannot be reached" page. Attempts to contact Ogbonnaya were unsuccessful, as his LinkedIn and Twitter accounts were inactive in 2019.
Nigeria and blockchain
NITDA announced in October 2020 that it had begun developing a blueprint and strategy for the "National Adoption of Distributed Ledger Technology (DLT)/Blockchain in Nigeria."
It then released the Draft National Blockchain Adoption Strategy in response to this announcement. The document lays out the roadmap and strategies for the government's adoption of blockchain technology as part of its digital transformation agenda.
Additionally, it highlights the government's strategic objectives and initiatives that will be actively pursued during the specified period through designated Ministries, Departments, and Agencies (MDAs).
While the Federal Government of Nigeria has remained silent on its future plans, the launch of the CBHUB signals a positive step forward in Nigeria's blockchain adoption journey, particularly in terms of education and skill development.
This, of course, must be weighed against the Central Bank of Nigeria's (CBN) most recent crypto order, which panicked Nigerian cryptocurrency traders in February 2021.
The CBN has directed banks to close the accounts of individuals or entities that conduct cryptocurrency transactions or operate cryptocurrency exchanges.
At this point, given the apparent contradictions in its policies, two questions arise: Should Nigerian enthusiasts of blockchain be cautiously optimistic? Is the Nigerian government planning to take any additional positive steps regarding blockchain technology in the near future?
The government's actions over the next few days should shed more light on this.
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