People . Technology . Process Blockchain: The 4th Industrial Revolution

Impact of blockchain on the Africa financial sector By Bolaji Onibudo, CEO Leapsoft Limited People . Technology . Process

Introduction

2 People . Technology . Process Bitcoin and Blockchain

3 People . Technology . Process The Blockchain (Ledger)

4 People . Technology . Process Bitcoin Mining e.g. Iceland Rig spends $1M on Utility

25 Bitcoins Rewarded every 10mins of competitive mining round to winner rig or pools

5 People . Technology . Process Bitcoin's Global Perspective Many national authorities characterize it as a digital asset or commodity rather than a .

In this sense it bears some resemblance to gold, which similarly has ambiguity as to whether it should be perceived as an asset or as a form of .

Hence, it suffices to say that: (i) Bitcoin is a digital asset that can be moved between parties,

(ii) as a commodity it has market value in terms of major national (the token can be exchanged for dollars, pounds and other currencies)

(iii) because of its volatility, it is hardly used as money—albeit often in small amounts— in exchange for real world goods and services .

6 People . Technology . Process

Impact and Opportunities

7 People . Technology . Process Remittances Bitcoin also has potential to facilitate small-scale international commerce. Local merchants in African countries may struggle to access international payments systems to sell their goods abroad.

For example, a rural crafts cooperative from Zimbabwe might struggle to set up a website with an integrated payments system.

A Bitcoin address might enable them to sell products in exchange for Bitcoin tokens that were then redeemed for local or foreign currency on a Bitcoin exchange.

Likewise, a small-scale non-governmental organization can easily set up to receive Bitcoin tokens as donations.

8 People . Technology . Process Bitcoin as a quasi- account for the “unbanked” The Bitcoin wallet to resemble a quasi-bank account for building up savings.

In the context of a country with poor banking infrastructure and reliance on cash, such a technology could—hypothetically—this can be a safer way to hold money, and a convenient way to transfer money in everyday transactions.

Rather than merely be useful for remittance systems, Bitcoin could be an infrastructure for everyday local payments in precarious, informal settings.

9 People . Technology . Process Financial Empowerment Micro payments Bitcoin can be applied within the context of international development, financial inclusion and bottom-of-the-pyramid business efforts.

This narratives includes :

• Bitcoin as a means to facilitate low-cost remittances for those seeking to transfer small amounts of money including micro-payments e.g. N50, N100

• Bitcoin as a means for a decentralized global bank account, accessible simply by downloading an opensource wallet from the internet, rather than having to travel and set up with a formal financial institution.

• Bitcoin—or the technology that underpins it—subsequently providing the basis for a richer set of

10 People . Technology . Process Financial Inclusion with credit

One possible route to financial inclusion is thus for to look beyond profit and to create financial services built on social and solidarity principles.

But, more crucially, exclusion implies not having access to credit, which may be related to not having stable income streams, or access to formal property titles to act as collateral.

11 People . Technology . Process Blockchain for Agriculture 1. Provenance and radical transparency powered by blockchain and allowing all statkeholders to have access to reliable information, enable the buyer/farmer easily consider only serious seller/buyers and eradicate countless middlemen.

2. Trading Platforms(Smart Contracts): with Mobile payments, credits, and decreased transaction fees offers the ability to provide a secure transfer of value that could eradicate numerous

3. Real-time management of supply chain transactions and financing De-risking the agri-supply chain through real-time settlement of physical commodity transactions has broad benefits for all participants by increasing efficiency, trust and security.

4. A Credit Bureau Services specifically tailored for agric sector to enable farm owners have access to lower interest loans.

12 People . Technology . Process Blockchain for Healthcare 1. Beyond the Push, Pull and View interoperability models, Blockchain is a different construct, providing a universal set of tools for cryptographic assurance of data integrity, standardized auditing, and formalized “contracts” for data access.

2. Every EHR can send updates about medications, problems, and allergy lists to an open-source, community-wide trusted ledger, so additions and subtractions to the medical record were well understood and auditable across organizations.

3. Real-time management of supply chain transactions and financing De-risking the pharmaceutical-supply chain through real-time settlement of drug history and transactions increasing efficiency, trust and security.

4. Smart-contracts transactions can enable real-time or event based multi-signature or automated transactions for payment in health insurance thereby increasing efficiency in insurance obligations which can often hinder providers.

13 People . Technology . Process Most Advanced FinTech Security - Cryptography are digital currencies that implement cryptography as a central part of the protocol, in order to establish pseudonymous (or anonymous) and decentralized currencies or tokens.

Generally wallets will contain a public key that is used to receive bitcoins (similar to a bank account number). It also contains a private key that is used to verify that you are indeed the owner of the bitcoins you’re trying to spend.

Bitcoin “wallets” can be printed out and stored on paper. A paper wallet is a slip of paper with both your private and public keys printed on it.

There are also hardware wallets, which store key information in offline hardware been that they are immune to software and viruses that can steal wallets stored on normal computers.

14 People . Technology . Process Crowdfunding Crowdfunding is the practice of funding a project or venture by raising monetary contributions from a large number of people. Crowdfunding is a form of crowdsourcing and of alternative finance. In 2015, it was estimated that worldwide over US$34 billion was raised this way.

Blockchain is powering the latest financial inclusion stories from around the globe, including social relationship savings and loans. Oradian launches a low-cost payment transfer network among some 3000 micro finance organizations in Nigeria.

Crowdfunding has been used to fund a wide range for-profit and non-profit projects bringing enormous opportunities for FDI.

15 People . Technology . Process Decentralized Autonomous Organization - DAO In this smart contracts are used to form a decentralized and democratic organization that exists solely on the blockchain, with single or multi-member manager, allowing participation in crowdsales, with voting rights and rules.!br0ken!! Public Private Partnership Example:

DAO: This type of DAO is programmed to execute a legal for an infrastructure development contract involving Concessioner, Government with stake holders including Investors, Banks, Insurance, Independent consultant, and the contractor.

Smart Contract Payment: During construction , after a set milestones are met, funds are released from an escrow to contractor through a multi-signature transaction thereby creating efficiency the way contracts are executed.

Smart Toll Collection and Distribution: Automated tolling enables electronic toll collection which then can be extended via smart contract to pay relevant parties in the PPP Banks, Concessionnier, Insurance and may be government

16 People . Technology . Process Blockchain Smart contracts Applications Property titles can be digitized are been digitized on blockchains making it easier to use as collateral, enabling cheaper bank lending with access to stakeholders.

The role of the could well involve establishing Blockchain smart contracts that govern services in : •Mortgages •Trade Finance •Stock trading •Insurance •Land titles registration •Credit Bureau •KYC •And more

17 People . Technology . Process

Case Studies

18 People . Technology . Process

The IRS notice provides that is treated as property for U.S. federal tax purposes. Among other things, this means that:

Wages paid to employees using virtual currency are taxable to the employee, must be reported by an employer on a Form W-2, and are subject to federal income tax withholding and payroll taxes.

Payments using virtual currency made to independent contractors and other service providers are taxable and self-employment tax rules generally apply. Normally, payers must issue Form 1099.

The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer.

A payment made using virtual currency is subject to information reporting to the same extent as any other payment made in property.

Also, the US Commodity Futures Trading Commission in September 2015 declared Bitcoin to be a commodity.

19 People . Technology . Process The Republic of Georgia Georgia’s National Agency of Public Registry is implementing a blockchain land titling project. A transparent and secure ledger — for managing land titles.

Add security to the data so the data cannot be corrupted. By powering the registry with the blockchain, the public auditor will also make a real-time audit.

The service are for purchases and sales of land titles, registration of new land titles, demolition of property, mortgages and rentals, as well as services.

20 People . Technology . Process South Korea

The only securities exchange in Korea, Korea Exchange (KRX), recently launched a blockchain-based marketplace where equity in startup companies can be traded, called the Korean Startup Market (KSM).

The Korea Exchange (KRX), South Korea’s securities exchange, developed a blockchain platform earlier this year. It was reported that the KRX had started the process of creating the platform to help trade securities between the two directly.

21 People . Technology . Process Bulgaria

BitLendingClub leverages blockchain technology in order to bring financial innovation to the small businesses in emerging markets. BitLendingClub is the biggest global lending marketplace which uses blockchain technology.

Small businesses have had systematic and disproportionately limited access to capital, yet they account for 92% of the firms, 70% of the new jobs and generate more than 45% of the GDP of their countries and we believe that they deserve better opportunities.

22 People . Technology . Process Germany

The German government has exempted bitcoin transactions held for over one year from 25% capital gains tax. It also categorized bitcoin as a form of private money.

Bitcoin accepted as a method of payment for utility bills, by German Energy giant, Enercity which announced on Friday, September 16 that Hanover residents can now pay for their energy use with the virtual currency.

23 People . Technology . Process

Our Partners and Collaborators

24 People . Technology . Process

TACOM Company Profile

• TACOM intelligent ticketing system facilitates the automation of public transportation payment process • It is based on the use of smart cards and specific hardware and software. Process includes credit generation, distribution, utilisation and redemption. • Tacom e-Ticketing comprises a series of equipment, applications and procedures developed to control the billing and other operations of public transport, based on the use of smart cards. Its efficient control allows it to handle multi-modal transport of an entire city, through easy- to-use integrated software and hardware.

. People . Technology . Process

RETT Norchain Miming operation.

- Blockchain and Bitcoin mining consulting / PRINCE2 Training

-Blockchain Adviser on Blockchain Medical Records

- Blockchain Adviser on Global Core ID

- Cryptocurrency Adviser and Tech Lead on Cryptocurrency Project in southeast Asia. People . Technology . Process

Next steps

27 People . Technology . Process

Our Case studies

7

29 People . Technology . Process

Leapsoft is proud to be the Pioneer Linux company responsible for the Localization of the $100 laptops geared for Nigeria

Leapsoft CEO - Bolaji Onibudo, Former Minister of Education - Mrs Obaji, Prof Nicholas Negroponte at the May 06 OLPC Taskforce Meeting in Cambridge International OpenSource Community People . Technology . Process People . Technology . Process Leapsoft is worked with NITDA in the Development of ICT Skills in Open Source

Werner Plessis – VIA MEA, DG/CEO NITDA –Cleopas Angaye, Bolaji Onibudo, SA to DG NITDA - Peter Jack. People . Technology . Process

Case Studies  United Bank for Africa – The UBA FX Mart Business unit at UBA was seeking to dramatically automate and enhance majority of its Bureau De Change business processes with emphasis on Branch-to-Branch real-time alerts and messaging for Currency Management and availability across all outlets. – Integration of POS and other electronic payment systems to aid cashless payment by customers.  Fin Bank formerly Firstinland Bank – Provision of Menu based Mobile Banking option to customers of the Bank who like to bank on the go and attract new customers through the convenient banking features of the application. The solution features included Bill Pay, Statements, Transfers, and more.  Federal Ministry of Science and Technology (SHESTCO) – Design and Deployment Wireless internet Access and Telephony service across the Shestco Science park of about 10 hectares in size. The solution entailed procurement of High-end HP and Dell Servers running Wazobia Linux operating systems integrated with the Colubris Wireless Equipments. People . Technology . Process

Case Studies  NNPC

– Analysis, Design and Implementation of an Enterprise Asset insurance management application. A Web based Java 2 Enterprise Edition Application with an Oracle Database backend.

 Tanfiani Transport Services Limited. – On going Consulting services on the procurement and implementation of Tacom e- Ticketing system for a fleet of 1000 buses. Considerations include Fare Management and distribution of e-Tickets, Fleet Management, Route Management and Service scheduling. People . Technology . Process

Case Studies

 Community Communication Centers (USPF)  Deployment of Wazobia Linux Desktop computing software with local language support in over 300 Community Communication Centers across the country.  Training of 18 Community Communication Center managers in the deployment and administration of Linux for the USPF sponsored Communication centers.  NITDA  Leapsoft provided Open Source Linux training for 1000 people i.e. groups of 100 students in 10 Local Governments around the country. People . Technology . Process

______

Contacts

Bolaji Onibudo Providence House, Plot 34/Block 15 Admiralty Way, Lekki Phase 1, Lagos.– Nigeria Tel.: (234) (802) 5943549 Mobile: (234) (705) 567-6367

Watch our for www.leapsoft.net

[email protected]

36