Machankura revolutionizes access to crypto in Africa


Wed 20 Mar 2024 ▪ 8 min reading ▪ by Luc Jose A.

As usual, bitcoin gets all the attention. A normal fact, especially since the asset is the most popular on the market. But above all, its volatility raises questions. For good reason, the asset has entered a worrying downward trend after reaching a recent all time high (ATH). While many players in the crypto industry wonder whether this change will last or not, the startup Machankura launched on African soil continues to draw attention to the practical usefulness of the network; particularly when it comes to completing transactions at lower gas costs. In this article, we take you to explore what is innovative about this bitcoin-focused platform.

Bitcoin, the flagship crypto

The big failure of the Bitcoin network over so many years of existence

Before getting to the heart of the matter, that is to say talking about Machankura, we must understand the context which makes this platform revolutionary and relevant in the African context.

You should know that since its launch in 2008, bitcoin, like cryptos in general, remains largely complex for most ordinary users. Initially designed as a means of transferring funds without an intermediary, bitcoin promised an economical alternative for sending money. A crucial perspective for low-income populations.

However, after more than 15 years, its progress has been limited by high transaction fees and scalability issues. In this area, the crypto platform still has a way to go. Although recent developments, such as the Lightning Network, are paving the way for faster and cheaper transactions.

However, the complexity of cryptos mentioned above remains a real difficulty for many users. Long alphanumeric addresses and the risk of loss of funds due to input errors are barriers to widespread adoption.

Not to mention that the emphasis on financial inclusion does little to reassure rural populations who lack smartphones and internet connections. This is particularly true in Africa where the internet penetration rate, a sine qua non condition for the use of cryptos, is one of the lowest in the world.

In short, despite its revolutionary potential, bitcoin remains largely inaccessible to many people. Overcoming these challenges imperatively implies simplifying its use and developing infrastructures adapted to all users. This is regardless of their level of familiarity with the technology. This is where startup Machankura comes into play.

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Machankura promotes bitcoin operations without internet

Bitcoin without internet. These three words are enough to summarize what Machankura actually does. It makes bitcoin transactions possible without necessarily using internet services. Obviously, you must ask yourself the question of how this firm achieves this. It must be said that the latter has managed to stand out due to the extreme simplicity of its operational model.

You should know that Machankura, founded by Kgothatso Ngako, allows users to send and receive BTC directly through mobile phone numbers. The operation of this service is based concretely on the use of USSD message codes for transactions, with a specific number assigned to each country. In other words, Machankura leverages mobile money infrastructure, a very thriving service on the continent for payments, to function.

The approach is more than relevant especially as it offers maximum accessibility to Machankura services. This is even for users with older devices lacking modern smartphone features. Additionally, they are guided through a simple registration process and can purchase bitcoins in the form of vouchers at local stores. Vouchers that they can then redeem using a referral code. All for a transaction fee of just 1% charged when sending BTC to other users. A cost that remains largely competitive compared to existing traditional options. As a result, Machankura is experiencing real hype in several African countries, notably in Ghana, Kenya and Nigeria.

Towards increased adoption of bitcoin?

As we have just seen, the revolutionary aspect of Machankura lies in its ability to make bitcoin, the most popular crypto on the market, accessible. And this, without an internet connection. This feature seems to be timely. Analysts say it should pave the way for widespread adoption in regions where internet access can be limited or expensive, including Africa.

Additionally, transaction amounts are denominated in satoshis, the smallest monetary unit of Bitcoin. This makes transactions accessible, even for small amounts. As an example, 10 dollars of BTC corresponds to approximately 142,500 satoshis. It is obvious that Machankura offers, through this strategic choice, increased flexibility and accessibility to its users.

By offering through its services a relevant alternative to fiat currencies often affected by hyperinflation in certain regions of Africa, Machankura contributes to the financial empowerment of millions of people. In short, this Fintech platform opens new perspectives for the use of bitcoin through a simple, affordable solution accessible to a wide range of users. In particular, those from countries with emerging economies. For the moment, the platform has 13,600, but it is particularly ambitious. It has set itself the objective of bringing true financial autonomy to Africans by helping them hold their own private keys. There is no doubt that if it succeeds, it will establish itself as one of the firms that helped bitcoin position itself on the African continent. A territory where crypto is gaining ground year after year.

Conclusion

All in all, the emergence of Machankura marks a significant step in the evolution of the use of bitcoin in Africa. Faced with persistent challenges of accessibility and costs associated with crypto transactions, this startup offers an innovative solution facilitating bitcoin transactions without requiring an internet connection. By leveraging the infrastructure of mobile money services, Machankura makes bitcoin transactions accessible to all users. This simplified and cost-effective approach paves the way for widespread adoption of bitcoin in Africa. Its promising model could well revolutionize the continent's financial ecosystem and position bitcoin as a viable solution for emerging economies.

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Luc Jose A. avatarLuc Jose A. avatar
Luc Jose A.

A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.

DISCLAIMER

The comments and opinions expressed in this article are those of the author alone, and should not be considered investment advice. Do your own research before making any investment decisions.

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