Source: Cointelegraph
Original text: "The Crossroads of Blockchain: From the Hype in Davos to Global Impact"
Author of the viewpoint: Advit Nath, Founder and CEO of BlueBridge Global
At the peak of the snow-capped mountains in Davos in 2023, blockchain technology was once hailed as a transformative force for global philanthropy. Two years have passed, and the industry landscape is vastly different, yet familiar challenges remain. Despite the soaring cryptocurrency market, increasingly mature regulatory frameworks, and a surge of innovation, the core issue remains unresolved—has blockchain truly realized its potential to drive social impact? Or is the industry still merely making promises without achieving scalable progress?
The role of blockchain in the humanitarian field
Since 2023, blockchain has shown positive progress in the humanitarian and development sectors. In the eastern region of Rwanda, harsh soil and weather conditions have limited agricultural output, but smallholders now access convenient tractor rental services through a blockchain platform. The Hello Tractor application utilizes blockchain and low-cost devices to transparently track equipment usage, payments, and maintenance, thereby improving agricultural productivity and enhancing the income of hundreds of thousands of farmers.
Similar cases of transformation have also emerged in the Philippines, Kenya, and Bangladesh, demonstrating how the tokenization of real-world assets can achieve global supply chain tracking. EY's OpsChain technology enhances transparency and efficiency in public finances through blockchain, enabling governments to monitor the allocation, expenditure, and income of funds for services and infrastructure—strengthening accountability and reducing potential fraud.
The development departments of major blockchain networks have invested heavily in supporting new ideas, including humanitarian development programs. Over the past decade, Polygon has allocated $640 million in tokens as community grants to support blockchain projects on the Polygon and Ethereum networks. Since 2023, the Stellar Development Foundation has invested millions of dollars in tokens in projects focusing on financial inclusion and cross-border payments. These investments indicate that capital support for blockchain-driven social impact is growing—this is a key driver for experimentation and deployment.
Ongoing challenges
The accessibility gap remains significant. Blockchain solutions often rely on stable internet connections, access to digital devices, and technological literacy. According to World Bank data, internet penetration rates in rural areas of Sub-Saharan Africa and South Asia are 36% and 43%, respectively, while the demand for humanitarian applications in these regions is most urgent. Although some solutions have adjusted their platforms for low-tech environments, broader applications require systemic infrastructure improvements.
Scalability remains a fundamental obstacle. Despite the shift to a proof-of-stake mechanism, networks like Ethereum still face high transaction costs during peak periods. Second-layer solutions like Polygon alleviate some issues but add complexity for end users, especially in regions with limited technical expertise. When market volatility leads to network congestion, humanitarian applications may struggle to be implemented due to excessively high transaction costs.
Ecological fragmentation hinders the global expansion potential. Interoperability solutions like Polkadot and Cosmos are gaining attention, but they have not been widely deployed in large-scale humanitarian applications. To effectively transform global development, cross-chain collaboration must become standard practice. The current siloed approach limits the potential for integrated solutions that address multiple development challenges simultaneously.
Regulatory Evolution
The regulatory environment has significantly evolved, with the EU's Markets in Crypto-Assets Regulation (MiCA) setting a new global standard. Despite its shortcomings (especially for small businesses and startups), MiCA provides the industry with the much-needed clarity regarding crypto assets, stablecoins, and trading. Its approach to the regulation of stablecoins and reserve requirements has influenced cross-border humanitarian applications, providing greater certainty for blockchain-based financial inclusion initiatives.
Major jurisdictions outside the EU adopt different approaches. So far, the U.S. maintains a complex regulatory landscape with multiple agencies overseeing, while Singapore employs a licensing framework that supports controlled innovation. Countries like Japan have implemented strict yet clear guidelines for crypto assets. This regulatory fragmentation poses unique challenges for cross-border humanitarian initiatives. Even widely adopted stablecoins like USDC, despite having sufficient reserves and regular audits, face different requirements in various regions, complicating their use in global aid distribution and financial inclusion projects.
Recent regulatory developments in other major financial centers indicate that countries are gradually moving towards MiCA-style regulation. Regulators are increasingly distinguishing between speculative cryptocurrency trading and the utility of blockchain solutions for real-world problems. This evolving regulatory landscape may provide a clearer path for humanitarian blockchain applications while maintaining necessary safeguards. The key question is whether other jurisdictions will follow the EU's lead in establishing a comprehensive framework that balances innovation with consumer protection.
The Road Ahead
In 2025, blockchain technology stands at a decisive moment. Solutions like Hello Tractor and EY's Opschain demonstrate the ability of blockchain to drive substantial progress. However, future success requires prioritizing collaboration, inclusive design, and pragmatic regulation. The achievements of the past two years are encouraging, but future developments will determine whether blockchain becomes a cornerstone of global growth or yet another missed opportunity. The transformative potential of this technology remains clear, and the real challenge lies in bridging the gap between promise and actual implementation.
Author of the viewpoint: Advit Nath, Founder and CEO of BlueBridge Global
Related Articles: Understand Your Peers: The Pros and Cons of KYC
This article is for general informational reference only and does not constitute and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.
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The Crossroads of Blockchain: From the Hype in Davos to Global Impact
Source: Cointelegraph Original text: "The Crossroads of Blockchain: From the Hype in Davos to Global Impact"
Author of the viewpoint: Advit Nath, Founder and CEO of BlueBridge Global
At the peak of the snow-capped mountains in Davos in 2023, blockchain technology was once hailed as a transformative force for global philanthropy. Two years have passed, and the industry landscape is vastly different, yet familiar challenges remain. Despite the soaring cryptocurrency market, increasingly mature regulatory frameworks, and a surge of innovation, the core issue remains unresolved—has blockchain truly realized its potential to drive social impact? Or is the industry still merely making promises without achieving scalable progress?
The role of blockchain in the humanitarian field
Since 2023, blockchain has shown positive progress in the humanitarian and development sectors. In the eastern region of Rwanda, harsh soil and weather conditions have limited agricultural output, but smallholders now access convenient tractor rental services through a blockchain platform. The Hello Tractor application utilizes blockchain and low-cost devices to transparently track equipment usage, payments, and maintenance, thereby improving agricultural productivity and enhancing the income of hundreds of thousands of farmers.
Similar cases of transformation have also emerged in the Philippines, Kenya, and Bangladesh, demonstrating how the tokenization of real-world assets can achieve global supply chain tracking. EY's OpsChain technology enhances transparency and efficiency in public finances through blockchain, enabling governments to monitor the allocation, expenditure, and income of funds for services and infrastructure—strengthening accountability and reducing potential fraud.
The development departments of major blockchain networks have invested heavily in supporting new ideas, including humanitarian development programs. Over the past decade, Polygon has allocated $640 million in tokens as community grants to support blockchain projects on the Polygon and Ethereum networks. Since 2023, the Stellar Development Foundation has invested millions of dollars in tokens in projects focusing on financial inclusion and cross-border payments. These investments indicate that capital support for blockchain-driven social impact is growing—this is a key driver for experimentation and deployment.
Ongoing challenges
The accessibility gap remains significant. Blockchain solutions often rely on stable internet connections, access to digital devices, and technological literacy. According to World Bank data, internet penetration rates in rural areas of Sub-Saharan Africa and South Asia are 36% and 43%, respectively, while the demand for humanitarian applications in these regions is most urgent. Although some solutions have adjusted their platforms for low-tech environments, broader applications require systemic infrastructure improvements.
Scalability remains a fundamental obstacle. Despite the shift to a proof-of-stake mechanism, networks like Ethereum still face high transaction costs during peak periods. Second-layer solutions like Polygon alleviate some issues but add complexity for end users, especially in regions with limited technical expertise. When market volatility leads to network congestion, humanitarian applications may struggle to be implemented due to excessively high transaction costs.
Ecological fragmentation hinders the global expansion potential. Interoperability solutions like Polkadot and Cosmos are gaining attention, but they have not been widely deployed in large-scale humanitarian applications. To effectively transform global development, cross-chain collaboration must become standard practice. The current siloed approach limits the potential for integrated solutions that address multiple development challenges simultaneously.
Regulatory Evolution
The regulatory environment has significantly evolved, with the EU's Markets in Crypto-Assets Regulation (MiCA) setting a new global standard. Despite its shortcomings (especially for small businesses and startups), MiCA provides the industry with the much-needed clarity regarding crypto assets, stablecoins, and trading. Its approach to the regulation of stablecoins and reserve requirements has influenced cross-border humanitarian applications, providing greater certainty for blockchain-based financial inclusion initiatives.
Major jurisdictions outside the EU adopt different approaches. So far, the U.S. maintains a complex regulatory landscape with multiple agencies overseeing, while Singapore employs a licensing framework that supports controlled innovation. Countries like Japan have implemented strict yet clear guidelines for crypto assets. This regulatory fragmentation poses unique challenges for cross-border humanitarian initiatives. Even widely adopted stablecoins like USDC, despite having sufficient reserves and regular audits, face different requirements in various regions, complicating their use in global aid distribution and financial inclusion projects.
Recent regulatory developments in other major financial centers indicate that countries are gradually moving towards MiCA-style regulation. Regulators are increasingly distinguishing between speculative cryptocurrency trading and the utility of blockchain solutions for real-world problems. This evolving regulatory landscape may provide a clearer path for humanitarian blockchain applications while maintaining necessary safeguards. The key question is whether other jurisdictions will follow the EU's lead in establishing a comprehensive framework that balances innovation with consumer protection.
The Road Ahead
In 2025, blockchain technology stands at a decisive moment. Solutions like Hello Tractor and EY's Opschain demonstrate the ability of blockchain to drive substantial progress. However, future success requires prioritizing collaboration, inclusive design, and pragmatic regulation. The achievements of the past two years are encouraging, but future developments will determine whether blockchain becomes a cornerstone of global growth or yet another missed opportunity. The transformative potential of this technology remains clear, and the real challenge lies in bridging the gap between promise and actual implementation.
Author of the viewpoint: Advit Nath, Founder and CEO of BlueBridge Global
Related Articles: Understand Your Peers: The Pros and Cons of KYC
This article is for general informational reference only and does not constitute and should not be considered legal or investment advice. The views, thoughts, and opinions expressed here are solely those of the author and do not necessarily reflect or represent the views and opinions of Cointelegraph.