Triggering the blockchain reaction

KARACHI:

Imagine you're a farmer in rural Pakistan, and you've just harvested a fresh batch of wheat. You want to sell it to a buyer in Lahore, but you're worried about getting a fair price and ensuring that the payment reaches you securely. Without blockchain, this process would involve multiple intermediaries - a middleman to connect you with the buyer, a bank to facilitate the payment, and a government agency to verify the quality and quantity of the wheat. Each intermediary would take a cut, reducing your profit margins and increasing the risk of fraud or delay.

Now, imagine the same process with blockchain. You create a digital identity for your wheat batch, including its quality, quantity, and ownership details. This information is stored on a secure, decentralised ledger that can be accessed by all parties involved. When you sell the wheat, the payment is made directly to your digital wallet, and the ownership transfer is recorded on the blockchain. The buyer can verify the wheat's quality and origin, and you receive the payment instantly, without any intermediaries.

But blockchain's potential goes far beyond supply chain management. Take, for example, the case of a young Pakistani doctor who wants to access her patient's medical history quickly and securely. Without blockchain, she would have to contact multiple hospitals and clinics, waiting for days or even weeks to receive the necessary documents. With blockchain, the patient's medical records are stored on a secure, decentralised ledger, accessible to authorised healthcare professionals. Any doctor can retrieve the records instantly, making informed decisions about her patient's treatment.

So, how secure is blockchain? In simple terms, blockchain is a digital ledger that records transactions across a network of computers, making it virtually impossible to alter or manipulate the data. Each block of transactions is linked to the previous one through a unique code, creating a permanent and unalterable record. To make changes to the blockchain, one would need to alter the entire chain, which requires an enormous amount of computing power and consensus from the network. This is ensured through a process called "proof of work," where powerful computers solve complex mathematical puzzles to validate transactions and create new blocks, making the network even more secure. This makes blockchain an extremely secure technology, resistant to tampering, hacking, and fraud.

Many people assume blockchain is only about cryptocurrency, but as these examples illustrate, its applications are vast and varied. From agriculture to healthcare, finance to education, blockchain technology has the potential to transform various industries in Pakistan, increasing efficiency, transparency, and security.

“Globally, the use of the blockchain technology goes far beyond cryptocurrencies. It is utilised across industries to ensure transparency and security of transactions: in supply chain management to improve traceability of goods, in finance for secure and efficient money transactions, in healthcare for managing patient records securely, and even in voting systems to ensure elections integrity. With the great engineering talent Pakistan has in place, the country can leverage blockchain in all areas of life: to enhance financial inclusion, streamline government services, secure supply chains, or protect intellectual property rights,” explained Daniel Ahmed, the co-founder and COO at Fasset, an all-in-one financial super app that allows people and businesses to securely invest, earn and make payments from anywhere in the world.

Current state of blockchain in Pakistan

Blockchain technology is slowly but surely gaining traction in Pakistan. It is being explored and adopted in various sectors, including finance, supply chain management, education, healthcare, and agriculture. These sectors are recognising the potential of blockchain to increase efficiency, transparency, and security.

One of the earliest adopters of blockchain in the country is the State Bank of Pakistan (SBP), which has launched a blockchain-based platform for cross-border payments. This platform, called the Pakistan Remittance Initiative (PRI), uses blockchain to facilitate secure and efficient international money transfers. The Punjab Information Technology Board's (PITB) development of a blockchain-based system for verifying university degrees.

In addition to these government-led initiatives, several private companies in Pakistan are also exploring the potential of blockchain. A Pakistani fintech company called Finja is leveraging blockchain to provide secure and efficient digital payment solutions to its customers. Other agriculture startups are using blockchain for supply chain management in agriculture.

Ahmed while explaining the advantages, said, “Blockchain can significantly enhance security, reduce fraud, and lower transaction costs. It enables secure, decentralised transactions without intermediaries. Blockchain ensures transparency by recording every transaction in an immutable ledger; this is crucial for transaction traceability. Smart contracts that run on blockchain networks can automate processes and reduce reliance on traditional systems. Blockchain can also enhance identity management by providing a tamper-proof record of identities and reducing fraud.”

Despite these advancements, many sectors in Pakistan still have the potential to benefit from blockchain adoption, such as voting systems, land registry, and cybersecurity. However, adopting blockchain technology can be challenging due to the need for significant investment in infrastructure, talent acquisition, and regulatory frameworks. Nevertheless, the potential benefits of blockchain make it an exciting and promising technology for Pakistan's future.

“Blockchain presents numerous opportunities for Pakistan, including innovation in fintech, uplifting public sector transparency and efficiency, creating new jobs in technology and development, and attracting foreign investment. These opportunities can help stimulate economic growth and position Pakistan as a leader in the blockchain space,” says Ahmed.

Various industries in Pakistan are grappling with challenges that can be effectively addressed by adopting blockchain technology. If we talk about the country's supply chain sector, it is plagued by issues like counterfeit products, inefficient inventory management, and lack of transparency, which can be resolved through blockchain's tamper-proof and transparent ledger system.

Similarly, the healthcare sector struggles with patient data management, medical record keeping, and pharmaceutical supply chain integrity, all of which can be improved through blockchain's secure and decentralised data storage.

Furthermore, the financial sector faces challenges like money laundering, fraud, and inefficient payment systems, which can be mitigated through blockchain's secure and transparent transaction processing. Along with this, the education sector's issues with degree verification, accreditation, and certificate authentication can also be solved through blockchain's secure and decentralised verification systems. By adopting blockchain, these industries can increase efficiency, reduce costs, and enhance security, ultimately driving economic growth and development in Pakistan.

Role of Web3 and AI

If blockchain is combined with Web3 and AI, the potential for innovation becomes even more transformative. Web3, often referred to as the decentralised web, represents a shift from the centralised nature of Web 2.0 to a more user-centric model. In Pakistan, this shift is unlocking new opportunities, particularly when integrated with blockchain technology. The combination allows for the creation of decentralised applications (dApps) that are secure, transparent, and resistant to censorship. This is especially impactful in the financial sector, where decentralised finance (DeFi) platforms are emerging, providing unbanked populations with access to essential banking services and promoting greater financial inclusion.

Artificial Intelligence (AI) further amplifies the capabilities of blockchain and Web3 by introducing intelligent automation, data analysis, and predictive insights. In Pakistan, AI-driven blockchain solutions are gaining traction in sectors such as healthcare, supply chain management, and governance. AI can process large volumes of blockchain data to identify patterns and make predictions, thereby enhancing decision-making and operational efficiency.

Collaborative projects are leveraging these technologies to tackle local challenges. For example, AI-powered blockchain systems are being developed to ensure the authenticity of medical records and monitor the distribution of pharmaceuticals, which helps combat counterfeit drugs and improves public health outcomes. The synergy of blockchain, Web3, and AI is poised to drive significant advancements across various industries in Pakistan.

Ahmed says that there is an incredibly bright future for blockchain and Web3 in Pakistan. “Our vision is to create a vibrant ecosystem where blockchain technology is seamlessly integrated into various sectors, driving innovation and economic growth. We're excited about the potential for blockchain to empower individuals and businesses by providing greater financial inclusion and reducing barriers to entry. We want to see local talent leading the way in blockchain innovation, creating solutions that not only address local challenges but also make a mark on the global stage,” shared Ahmed.

Work in progress

As blockchain technology continues to gain traction in Pakistan, several companies are pioneering innovative solutions to address the country's unique challenges. From fintech startups to established enterprises, many organisations are exploring the potential of blockchain to drive growth, efficiency, and transparency across various industries.

Among these trailblazers is Fasset, a leading blockchain company that is making significant strides in promoting blockchain adoption and development in Pakistan. Fasset's focus on blockchain education and development in Pakistan stems from a deep conviction in the technology's potential to address the country's socio-economic challenges. As Ahmed explains, "We believe blockchain can be a game-changer for Pakistan."

“One key factor driving this focus is the vast number of unbanked and underbanked individuals in Pakistan - over 100 million people lack access to basic financial services. Blockchain technology, with its secure and low-cost transactions, offers a solution to this problem,” explained Ahmed adding that blockchain can extend financial services to these underserved populations, creating more inclusive financial systems that empower individuals and small businesses.

Another inspiration for Fasset's focus is the need for transparency and accountability in various sectors. Blockchain technology can provide this, building trust in public and private institutions. As Ahmed puts it, "Blockchain can help create a more transparent and accountable system, which is essential for Pakistan's development."

Fasset is also driven by a desire to equip Pakistan's young population with the skills needed to participate in the global digital economy. “With a large demographic of young people, Pakistan has immense potential for innovation and growth. We want to foster a new generation of tech-savvy entrepreneurs and professionals," says Ahmed.

Ultimately, Fasset's goal is to drive economic growth by creating new industries and job opportunities through blockchain technology. "We're committed to positioning Pakistan as a leader in the blockchain space, attracting investment, and improving the tech ecosystem," Ahmed explains. "This will lead to significant economic development in the country."

Talking about the work that Fasset has been doing, Ahmed said, "We set up our global engineering hub in Islamabad three years ago, and since then, we've recruited world-class talent in Pakistan to develop innovative solutions."

One of the notable achievements of the Islamabad hub is the development of the Fasset mobile app. "Our team in Pakistan has done an outstanding job in creating a user-friendly app that enables secure and seamless transactions involving digital and tokenised real-world assets," noted Ahmed.

The Fasset app, available in the U.A.E., Indonesia, and Turkey, allows users to buy and invest in digital and tokenised real-world assets, participate in spot exchange transactions, and transfer funds, all within a blockchain environment. "We're proud of what our team has achieved, and we're excited to see the impact it will have on the financial landscape," said Ahmed.

Recently, Fasset partnered with USA-based company Dinari to introduce Dinari's dShares onto Fasset's platform. "This partnership allows us to offer our users even more opportunities to invest in real-world assets, and we're thrilled to be working with Dinari to make this happen," explained Ahmed. Dinari's dShares are defined as 1:1 backed Real World Asset tokens of US stocks and ETFs, and Ahmed believes this will be a game-changer for Fasset's users.

Ahmed added that to keep up with the industry evolution, Fasset implement the most progressive tools into their product. “The team behind Fasset is constantly at the forefront of tech innovation. In addition to our inhouse global expertise, we collaborate closely with some of the leading tech companies and financial partners globally,” said Ahmed adding that they have the expertise to mentor and guide blockchain-focused projects and help them develop real-life applications of this emerging technology.

Taking Pakistan global

Pakistan has long been recognised as a hub for technological talent, and blockchain development is no exception. With a large pool of skilled engineers and developers, Pakistan has the potential to become a leading player in the global blockchain industry. To further grow the industry and give the local talent a global exposure, Fasset, who has established its global engineering hub in Islamabad, has launched Blockchain Fest - a flagship competition to help Pakistani engineering talent shine on the global arena.

“Blockchain Fest is a tech-focused competition. To promote financial inclusion, participants in the competition will leverage Web3, blockchain, and AI technologies to address real-world financial problems,” shares Ahmed.

The 2024 Cohort of Fasset Blockchain Fest will receive mentorship and guidance from experts in the fields of Web3, blockchain and artificial intelligence. The winning team will travel to Fasset HQ in Dubai and go through an intensive three-week program during which they will work closely with Fasset to develop their idea into a proof of concept (POC). They will get to present their POC at GITEX - Future Blockchain Summit, to be held from October 14-18, 2024, at the Dubai World Trade Centre.

“The competition officially kicked off on July 7th with a community meetup at NIC Islamabad, a startup incubator and accelerator aiming to support disruptive projects, during which details of the competition were announced.

With its strategic location, large youth population, and growing tech industry, Pakistan has all the ingredients to become a global blockchain powerhouse. By leveraging its strengths and addressing the challenges, Pakistan can tap into the vast opportunities presented by the global blockchain technology is forecast to increase to nearly 1,000 trillion U.S. dollars by 2032.

As Ahmed reflected on the journey of Fasset and the growth of Pakistan's blockchain ecosystem, he emphasised the importance of curiosity and continuous learning for young developers and entrepreneurs. "Stay curious and keep learning, this field is evolving rapidly, so it's essential to stay updated with the latest developments," he advised.

Ahmed also stressed the value of community engagement. "Join forums, attend meetups, and participate in hackathons, these are great places to network, learn from others, and even find potential collaborators," he suggested while recalling his own experiences attending blockchain conferences and meetups, where he met like-minded individuals who shared his passion for blockchain and Web3.

For those looking to gain hands-on experience, Ahmed recommended starting small. "Don't be afraid to get your hands dirty with some real-world projects. Start with a personal project or contribute to an open-source initiative. This hands-on experience is invaluable," he said while sharing stories of Fasset's early days, where the team worked on small projects to gain experience and build their portfolio.

Ahmed while emphasising the importance of mentorship suggested seeking out mentorship opportunities. "Learning from those who have already navigated the path can provide insights and shortcuts that you might not discover on your own," said Ahmed while crediting his own mentors for helping him navigate the challenges of building a blockchain company in Pakistan.

Challenges and opportunities

Despite the promising potential of blockchain in Pakistan, the country still faces significant challenges in adopting this technology. One of the major hurdles is the lack of regulatory clarity, which has led to a cautious approach by businesses and individuals. Additionally, the country's infrastructure and digital literacy also pose significant challenges to widespread adoption. As Ahmed noted, “The main challenges include regulatory uncertainty, lack of awareness and understanding of the technology, and insufficient infrastructure. Overcoming these barriers requires collaborative efforts from government, industry, and educational institutions.”

However, despite these challenges, the future of blockchain in Pakistan looks promising. In the next five years, we can expect to see significant growth in the adoption of blockchain technology, particularly in the financial and supply chain management sectors. As more businesses and individuals become aware of the benefits of blockchain, we can expect to see increased investment and innovation in this space. Ahmed predicted, “Over the next few years, we can expect increased regulatory clarity, greater integration of blockchain in various sectors, and the emergence of new business models and services powered by blockchain. This evolution will be driven by advancements in technology and growing recognition of blockchain’s potential.”

“At Fasset, we believe collaboration is key to driving blockchain adoption. We actively work with a variety of stakeholders, including industry partners, government entities, and educational institutions,” informed Ahmed.

“Fasset closely collaborates with corporate entities such as telcos, digital banks, wallet providers, wealth managers, fintechs, and asset managers, which extends the company’s reach and helps to catalyze industry-wide digital transformation. One example of this is Fasset’s partnership with Indosat Ooredoo Hutchison in Indonesia, through which Fasset launched the world’s first embedded digital asset exchange in a telco app - available to over 100M users. Fasset also has a partnership with Mastercard,” he added.

One of the major misconceptions about blockchain, according to Ahmed, stems from the regulatory environment. "Blockchain is a horizontal technology layer with cryptocurrency being just one application," he explained. "Regulators can proliferate the use of this technology whilst concurrently evaluating the prospects of cryptocurrency." However, Ahmed noted that many people conflate the two, leading to a misconception about the potential of blockchain.

Despite this challenge, Ahmed remains optimistic about the future of blockchain. "With more successful mass adoption cases, we'll see increased trust and support by governments across the globe," he predicted adding that the governments will begin to recognise its potential and work to create regulatory environments that support its growth.

As blockchain technology continues to evolve, Pakistan stands on the cusp of a digital revolution, poised to harness its transformative power to drive economic growth, empower individuals, and position the country as a leader in the global digital economy. With a growing ecosystem of innovators, developers, and forward-thinking companies like Fasset, the potential rewards are immense, including greater transparency, efficiency, and inclusivity across various sectors.

For individuals, this revolution offers a wealth of opportunities, from new career paths in blockchain development and innovation to increased access to financial services and economic opportunities. By being part of this journey, individuals can gain new skills, start new businesses, and connect with a global community of like-minded entrepreneurs and innovators.

However, the journey is not without its challenges. To overcome these, it is crucial to foster collaboration between government, industry, and educational institutions. By working together, Pakistan can create an environment that supports innovation, entrepreneurship, and growth, ultimately unlocking the full potential of blockchain technology.

As Pakistan embarks on this exciting journey, individuals have the power to shape their own futures and contribute to the country's growth and prosperity. By implementing this digital revolution, Pakistan can create a brighter future for all, where technology drives progress, innovation thrives, and individuals have the opportunity to reach their full potential.