Sustainability of cryptocurrency in blockchain technology for business development in African Countries

Abstract

The aim of the paper is to analyze the sustainability of cryptocurrency in blockchain technology in African countries for securing financial business transactions. Following the subprime crisis that shook the world economy, a new perception of money has emerged. It is a fully digital currency whose transactions are made through a distributed network. This algorithm-encrypted currency, reputed to be tamper-proof, transparent and inclusive, relies on a distributed network called the Blockchain. By comparison with traditional registers in which operations are paginated and successively recorded, transactions in blockchain technology are aggregated within the chain of blocks. It is decentralized since it is replicated on several geographic sites around the world. It enables peer-to-peer transactions, automated in real-time, reliable, secure, without intermediaries and non-repudiable. To ensure maximum security during financial transactions, blockchain miners use cryptography. This distributed system is, therefore, a major technological innovation capable of securing the financial infrastructure and mitigating failures by reducing operational risks. According to our analysis based on the Merkle tree model and blockchain energy consumption, the sustainability of cryptocurrency is a major issue for developing countries. Especially in Africa, its practicality poses a number of constraints.