Africa: The Promised Land of Blockchain
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Africa: The Promised Land of Blockchain
Look at that ancient continent—perhaps it is the promised land of blockchain.
Navigating Web3 tides with focused insightsBy Real Player DAO
It has been a year since my trip to Africa ended, yet I still often recall those brief but deeply impressionable days. During prolonged bear markets, everyone focuses on survival; now, on the eve of a new bull run, it's time to look up and seek fresh growth opportunities. Perhaps that ancient continent—Africa—is exactly where blockchain’s promised land lies.
Basic Data
We can compare Africa, China, and Southeast Asia across several dimensions, using data from January 2022.
As of my knowledge cutoff date (January 2022), here are some demographic statistics for Africa, China, and Southeast Asia. Please note that these figures may have changed by the time you read this. For accurate information, consult the latest available data.
Total population:
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Africa: Approximately 1.38 billion, with Nigeria at 210 million.
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China: Approximately 1.41 billion.
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Southeast Asia: Approximately 670 million, with Vietnam at 100 million.
Youth population (typically ages 15–24):
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Africa: Around 350 million, with Nigeria at 120 million.
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China: Around 160 million.
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Southeast Asia: Approximately 110 million.
Median age (as of January 2022):
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Africa: About 19 years old, with Nigeria at 18.
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China: About 38 years old.
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Southeast Asia: Around 30, with Vietnam similar.
Among these metrics, youth population interests me most—because young people represent the hope of any endeavor, especially in blockchain. When it comes to cryptocurrency and blockchain, youth are natural adopters. Although Africa’s total population is slightly smaller than China’s, its youth outnumber China’s by more than two times—and triple that of Southeast Asia.
Despite generally low levels of education and development, who can underestimate the potential of youth? And who can deny that, in terms of blockchain adoption, Africa could be today what China was ten years ago—or what Southeast Asia was five years ago?
What Africa offers blockchain is precisely its hundreds of millions of young people actively seeking change.
First Impressions: A "Frontier Land"
I flew from Dubai via Turkish Airlines, transiting through Istanbul to reach Lagos. I avoided the cheaper Ethiopian Airlines mainly because Ethiopia was embroiled in civil war at the time—reports said gunfire could be heard even at the airport.
Arriving in Lagos late at night, our Chinese contact predictably failed to show up. We had to find a ride to the hotel ourselves at the airport. As a local Black man led my partner and me through the seemingly endless parking lot into the dark, I felt utterly defeated.
Fortunately, we made it safely to the hotel—an establishment surrounded by high walls topped with dense barbed wire.
Lagos, Nigeria’s largest city, officially hosts over 21 million people—reportedly Africa’s most populous urban center. The next day, our African partners took us on a “city ride,” giving us a whirlwind tour of the city’s vastness and intensity.
People were everywhere, along with countless second-, third-, or even tenth-hand cars and motorcycles. Safety awareness seemed minimal—women and children darted quickly between heavy traffic, selling cheap snacks. When survival pressure is extreme, safety often becomes secondary.
Most striking were the soldiers scattered throughout the streets—casually dressed, military shirts open to reveal undershirts, assault rifles dangling loosely. They moved freely, occasionally tapping on car windows, waving their guns before pocketing stacks of cash. Local currency devaluation is rapid—everything requires thick bundles of bills. For the first time in my life, I carried a bag full of cash just to pay for a modest Chinese dinner for four.
Public security visibly suffers. We frequently heard grim news—Chinese merchants robbed at gunpoint, armed clashes breaking out at mines. Locals repeatedly warned us not to leave the city center.
Though it was already winter, due to its equatorial location and tropical rainforest climate, the dry season kept temperatures hot. Greenery was sparse, and the overall vibe resembled the desert fringes of Ningxia—filming sites of *A Chinese Odyssey*.
In the following days, we moved to an Airbnb in one of Lagos’ so-called affluent neighborhoods. The room was large and tastefully decorated, but infrastructure was abysmal. Giant, bizarre insects and mosquitoes regularly appeared indoors. Tap water reeked of odd chemicals. Power outages were severe—electricity cut off over ten times daily. Staff would rush downstairs to start massive diesel generators, unleashing deafening roars. It was the first time I realized electricity actually makes noise.
Overall, despite being the largest city, Lagos—and Nigeria as a whole—feels somewhat wild and primitive. Yet within this rawness lies traces of civilization and a powerful undercurrent of momentum.
Looking Deeper: A Familiar Era
I moved to Beijing for university in 2006 and started working in 2012—as a teacher, then transitioning into financial media. I missed China’s first wave of internet startups but fully experienced the mobile internet revolution, witnessing the rise of many companies and profound lifestyle shifts. While smartphones brought problems, their convenience was undeniable. Try recalling life before 2010.
As we explored Lagos deeper and handled food, clothing, housing, and transportation ourselves, we encountered numerous inconveniences.
When searching for food—especially Chinese cuisine—we found only Google Maps offered basic info. But even that was incomplete—just addresses without reviews. Worse, the data was often outdated. Starving and hopeful, we’d take an Uber in a beat-up used car, only to find the restaurant long closed.
Beyond basic tools like Google Maps, nearly all the mobile apps we rely on in China—especially local life services—are absent in Lagos, Africa’s largest city.
Why is that?
Is phone penetration too low? No—Nigerians average one phone per person, higher in cities. Though older models, they’re still smartphones. Look at Transsion’s success in Africa to get a sense.
Network issues? Partially. Mobile data is expensive, and carrier service quality is poor. But running apps is still feasible—networks aren’t the core bottleneck.
Lack of demand? Conversations suggest demand is weaker than in China, primarily because commercial ecosystems are underdeveloped—fewer shops exist. This factor plays a role.
Business mindset matters too. China’s mobile internet leads globally, having profoundly disrupted traditional commerce. Entrepreneurs underwent major transformation, cultivating advanced, comprehensive business thinking. In contrast, African entrepreneurs still lag behind their Chinese counterparts in this regard.
Thus, while experiencing inconvenience in Lagos, I also saw a familiar scene—the pre-mobile-internet era. This struck me deeply, raising the possibility of replicating China’s proven mobile internet models in Africa. Each such moment fills me with excitement. Of course, excitement gives way to realism—differences in national conditions and audiences mean replication will be arduous.
Blockchain’s Promise
During our time in Africa, we visited several countries, attended meetups, met many passionate young people—overseas Chinese, but mostly locals, including our partners and many active in blockchain.
Through conversations with these energetic youth, I sensed their immense enthusiasm for blockchain and cryptocurrency. I summarize three key reasons.
First, youth naturally embrace new things. They clearly recognize blockchain and crypto as emerging trends—even if they don’t fully grasp the underlying principles, they want to ride the wave.
Second, young people face intense living pressures—especially in big cities like Lagos, where jobs and housing are scarce. According to them, graduates struggle to find work, and rents are high. Many spend their first post-graduation year sleeping on friends’ couches—true couch surfers.
Blockchain offers two concrete benefits. One is the chance of sudden wealth—crypto’s 10x, 100x, even 1000x gains could equal a decade’s salary in the real world. The other is job opportunities. Most Nigerian youth speak English as their first language, enabling them to access remote roles in the blockchain space—like community moderators. I always tell peers: blockchain provides a relatively fair way for people in the Global South to earn income through time, minimizing disadvantages from geography or skin color.
Third, many countries suffer from poor governance—most evident in rampant inflation. Recall my story about carrying a bag of cash for dinner? That’s no outlier. According to Trading Economics, beyond Nigeria, Angola, Egypt, DRC, Ethiopia, Ghana, Sierra Leone, Sudan, and others face severe inflation and currency depreciation. Meanwhile, residents lack reliable channels to access stable assets. Blockchain offers a rare, often the only, pathway. My partner and I—with Chinese and U.S. passports—tried exchanging money at local banks; both were politely declined.
Overall, young people across Africa, exemplified by Nigerians, show strong passion and desire for blockchain and cryptocurrency. Their motivation to adopt digital currencies is powerful, with no ideological resistance. Even during game promotions, someone once suggested targeting high school students—they follow trends more closely and show stronger interest in learning blockchain through GameFi.
Crossing the Red Sea
In my view, Africa is blockchain’s natural promised land. But reaching it requires crossing a turbulent Red Sea—one that has separated Africa for eons and isn’t easily traversed. Not everyone can part the waters like Moses.
First is income level. For local youth, daily earnings from regular work fall below $10—barely enough for subsistence, far short of investing in crypto. At this level, African users’ purchasing power is limited. Almost every meeting with investors or partners highlights this issue—it remains their biggest concern.
On purchasing power, I can’t offer a fully convincing answer—only time will provide the best response. Here’s my personal take: user value shouldn’t be measured solely by spending capacity. Time and attention are equally vital resources—interconnected and mutually reinforcing. Any healthy project needs diverse user participation. African users hold clear advantages in contributing time and attention. Moreover, I believe their purchasing power will gradually grow as they begin earning within the blockchain ecosystem. This isn’t unprecedented—Southeast Asian communities are the perfect precedent.
Second is political instability. Africa ranks among the world’s most politically volatile regions—civil wars, coups, and separatist movements are common. Frequent policy reversals and official corruption further harm the business environment. Amid constant conflict, there may be high-profit sectors—but more often, danger and ruin prevail.
For blockchain practitioners, policy changes are indeed unfavorable. For example, Nigeria’s Securities and Exchange Commission once ordered individuals to stop trading with Binance. Kenya banned Worldcoin nationwide over privacy concerns. Yet such policies haven’t stopped exchanges and projects from expanding across Africa. Recent reports indicate up to 47% of Nigerians actively participate in crypto trading. Yellow Card ads are visible in major Lagos malls. As one of Africa’s most successful exchanges, Yellow Card maintains a straightforward business model.
Therefore, I see policy risk in Africa as non-core—it won’t be the primary driver of success nor the main cause of failure. At most, it’s an external force, not decisive. Anyone with basic political insight knows there’s significant maneuvering space.
Finally, hardware and software limitations. These are objective constraints constantly affecting users. Local phones lack performance, unable to run demanding games. Mobile networks are subpar, and data is expensive—posing challenges for game operations. Computer penetration among youth is low (far below smartphone rates), and PC internet costs remain high (a stark contrast to China). Thus, desktop-based products won’t gain popularity in Africa.
Hardware and software issues are best seen as objective constraints. Therefore, Africa currently favors mobile-first applications. This should guide product strategy and market entry.
Conclusion: That Ancient Continent
That ancient continent feels distant and silent. Most of us harbor biases and misunderstandings about Africa due to ignorance.
Of course, these biases aren’t baseless. During our stay, we often got frustrated by small daily setbacks.
Yet we cannot deny the continent’s potential—abundant resources, massive populations, especially vast numbers of youth—all creating conditions for takeoff. This is particularly true for blockchain.
Take our Real Player DAO: we quietly launched a mobile wallet in Nigeria in May 2023. Within six months, we surpassed 60,000 users—far exceeding expectations. The African market consistently rewards those who commit seriously.
Join me on this journey.
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