Nigeria’s National Information Technology Development Agency (NITDA) recently announced plans to develop a sovereign blockchain called “Nigerium”. The move is intended to address the growing importance of data security and national control in the digital age.
This government agency believes a custom-built blockchain will offer a higher level of protection for its citizens’ data and bolster national security. However, this initiative raises questions about its necessity and potential drawbacks. Let’s delve deeper into the NITDA’s gamble on “Nigerium” – is it a visionary step forward or a misstep in a rapidly evolving technological landscape?
Security and Existing Solutions
In today’s digital world, data security is a top concern for governments and individuals alike. When it comes to ensuring high-level data protection, Blockchain offers a strong solution. Blockchain networks like Ethereum, already widely used, utilise cryptography and distributed ledger technology to create a highly secure environment. This means data is encrypted and stored across multiple computers, making it very difficult to tamper with or breach.
Given the strong security features already available on established blockchain networks, is building a whole new network like Nigerium truly necessary for achieving data security? Could the desired level of protection be attained through other more effective means?
Building vs. Optimising: A Resource Equation
Building a secure and reliable blockchain network like Nigerium is a complex undertaking that demands a substantial investment of financial and technical resources. Developing a robust blockchain requires highly skilled developers with expertise in cryptography, distributed ledger technology, and blockchain programming languages. Furthermore, a secure blockchain needs a strong underlying infrastructure, including reliable servers, secure data storage solutions, and robust network bandwidth to handle transactions efficiently.
Finally, maintaining a blockchain network is an important but often underestimated added cost. It involves regular security audits, software updates, and addressing potential vulnerabilities to ensure the network’s integrity over time. The confluence of these factors necessitates a significant resource investment. Industry experts estimate costs spiralling over of N1billion.
Should such a budget be allocated to the National Information Technology Development Agency (NITDA), I believe their expressed goals of data security and national control can be better actualized through several other ways:
A. Blockchain Education: Investment in training programmes to create a local pool of developers familiar with existing technologies. This empowers Nigeria to leverage existing platforms like Ethereum, potentially contributing to their future development while fostering a domestic blockchain development ecosystem.
B. Encouraging Regulatory Framework Development: The NITDA is positioned to play an advisory role to the legislature. They can offer proposals of strong regulations for existing blockchains that ensure data security and compliance within those systems. Under the advisement of NITDA, the legislature can tailor regulations to its specific needs, ensuring control over data stored on these platforms.
C. Exploring Customisation Options: Many existing blockchains offer some level of customisation. the NITDA can explore these options to tailor existing platforms to meet specific national needs, potentially creating a hybrid solution that leverages established infrastructure with functionalities unique to Nigeria.
Established blockchains, on the other hand, boast vast ecosystems and user bases, leading to greater security and wider application possibilities. Leveraging these existing networks with strong local regulations could be more strategic than starting from scratch. By focusing on these strategies, Nigeria can harness the power of blockchain technology without the immense resource burden of building an entirely new network.
Blockchain Governance
Blockchain technology’s core principle is security achieved through user autonomy. This challenges traditional data control methods employed by governments. The question remains: Can a government truly control data on a decentralised network like Nigerium? Can decentralisation and control co-exist? Finding the right balance between security and some degree of control will be a key challenge for Nigerium’s developers.
Nigeria is not alone in desiring to control Blockchain technology. Several countries are actively exploring how blockchain can be integrated into their governance systems.
United Arab Emirates (UAE): The UAE is exploring a hybrid approach, integrating blockchain with existing systems, and developing their own solutions for specific needs. This approach offers a pragmatic solution, leveraging existing strengths while addressing unique national requirements.
China is actively researching and developing its own blockchain infrastructure, but also studying integration possibilities with existing platforms. This highlights a two-pronged approach: exploring domestic development while considering interoperability with established networks.
The United States has taken a measured approach to blockchain technology. While private companies are innovating in this space, the government hasn’t built its own blockchain network. Instead, they leverage existing platforms like Ethereum for various applications.
By studying how these countries navigate the complexities of blockchain governance, NITDA can gain valuable insights. The global trend seems to favour integrating blockchain technology within existing frameworks with strong security features. Leveraging established networks might be a more efficient and effective path compared to building an entirely new blockchain like Nigerium.
A Well-Weighed Decision
NITDA’s ambition to develop a sovereign blockchain is commendable. However, a thorough cost-benefit analysis is crucial before embarking on such a complex project. Optimising existing platforms and fostering a local developer base could be a more efficient path to achieve data security and national control. By taking a measured approach, prioritising needs assessment, and leveraging established technologies, Nigeria can chart a course for successful blockchain governance that fosters innovation and national security.
