Blockchain technology is becoming a global sensation and less of an alien especially in Africa. Providing new possibilities for various industries, especially the financial sector, blockchain is becoming the future of finance. In Nigeria, a country with 36 percent of its population being unbanked but with a growing interest in digital finance and web3, the impact of blockchain adoption is particularly promising to surge the financial inclusion of its population. One intriguing factor that has played a significant role in driving blockchain adoption in Nigeria is the concept of “airdrops”. I mean, who doesn’t like “free money” as airdrops are mostly called? In this article, we will delve into the impacts of airdrops in fostering blockchain adoption in Nigeria.

What are Airdrops?

Airdrops are a distribution method used by blockchain projects to provide free cryptocurrency tokens or non-fungible tokens (NFTs) to members of their community. These tokens are often distributed to members of a community who hold a specific blockchain’s native cryptocurrency or to individuals who complete certain tasks or engage with the project in some way. So the concept of airdrops being “free money” is not true since members have to complete a certain amount of tasks or criteria before they can be eligible for the drops. While airdrops vary in size and scope, they share common goals which are to increase awareness of a particular project, engage users, and facilitate the distribution of new blockchain tokens.

Why Nigeria?

Nigeria already has one-quarter of its population being unbanked, that is, there are large amounts of adults who do not have bank accounts. This makes it an ideal ground for blockchain adoption. The traditional financial system in Nigeria faces a lot of challenges such as currency devaluation and limited access to banking services in rural areas. Sadly, at the moment, the Nigerian naira seems to be in a lost battle against the dollar as the value keeps depreciating. Blockchain technology offers a potential solution by providing secure and accessible financial alternatives.

The Impact of Airdrops on Nigerians

1. Access to Cryptocurrency: During the last bull run, a lot of Nigerian youths became millionaires all thanks to airdrops. Airdrops grant individuals access to cryptocurrency without requiring them to invest their own money. In a country where financial barriers can be frustrating, airdrops are a low-risk entry point into the Web3 space.

2. Education and Awareness: To be a part of a project airdrop, learning about blockchain technology, wallets, and the broader cryptocurrency ecosystem is a necessity. This educational aspect not only increases awareness but also equips Nigerians with valuable knowledge about a technology that is projected to be the future of digital finance.

3. Community Building: Airdrops create a sense of community among participants. When individuals receive tokens, they are more likely to engage with blockchain projects, tell others about the project, join online communities such as Discord and Telegram, and also collaborate with others interested in the technology. This sense of community fosters trust and confidence in blockchain technology.

4. Use Cases: Airdrops often come with specific use cases or utility within blockchain projects. As Nigerians begin to hold these tokens, they may explore the projects and services associated with them, driving real-world utilization of blockchain technology.

5. Job creation: In a country with a high level of unemployment rate, the intervention of blockchain is projected to help reduce the poverty pandemic among youths. Blockchain projects offer technical and non-technical career opportunities for its members provided you have a skill. You can be a community manager, a shiller, an influencer, a content writer, or a smart contract developer.

6. Financial Inclusion: One of the most important impacts of airdrops is the financial inclusion it offers. By receiving free digital assets, individuals gain access to a financial ecosystem freeing them from shackles of poverty also breaking the geographical barriers in terms of exploring other projects. Which potentially empowers the unbanked and underbanked populations of Nigeria

7. Bootstrapping New Projects: Blockchain startups uses airdrops as a strategy to distribute their tokens and attract initial users and investors. According to Coingecko July 2023 report, Nigeria holds the first place among African countries interested in Crypto. This can be traced back to the inclusion of airdrops by some Blockchain projects for example Arbitrum.

Conclusion

In a nutshell, airdrops have proven to be a powerful tool for fostering blockchain adoption in Nigeria. They provide access to cryptocurrency, enlighten and educate people about a particular project, financial inclusion, build communities, lower financial barriers, and also provide job opportunities for Nigerians. However, it’s essential to remember that airdrops should be part of a broader strategy that includes token regularity, infrastructure development, and educational initiatives to ensure sustainable and responsible growth in the blockchain space. As Nigeria continues its journey toward embracing the web3 space, airdrops serve as catalyst to speed up this technology inclusion among Nigerians.