Cardano (ADA), an ambitious blockchain project developed by the IOHK, wants to challenge the subscription industry with its Ouroboros protocol. The Cardano Foundation has also announced that it will use the newly founded South African National Blockchain Alliance (SANBA) to explore other blockchain technology opportunities in the region.
The subscription industry could benefit from the blockchain
Despite the significant boom that the subscription industry has seen in recent years, it has become increasingly difficult for companies building on this model to survive. According to City AM, we are approaching a “top-of-the-line” cliff that makes the model untenable for many companies.
The solution to the problems in this industry could very well be found by enabling microtransactions based on blockchain technology. Recent advances from IOHK, the company behind the Cardano blockchain, could make it the first company to question the subscription economy.
Ouroboros Hydra, an update to Cardano's Ouroboros scaling protocol, could allow the network to process millions of transactions comparable to conventional systems such as Visa, MasterCard, and PayPal. Microtransactions, City AM reported, would open up many new opportunities for both users and businesses, as customers can pay for individual items, films, or songs rather than expensive monthly subscriptions.
It is not just the subscription industry that Cardano has targeted. The Cardano Foundation, a nonprofit that oversees the development of the Cardano blockchain, has announced a partnership with the newly founded South African National Blockchain Alliance (SANBA).
South Africa is a key market for building a network of governments, institutions, and businesses using Cardano on the African continent, according to Bakyt Azimkanov, Cardano Foundation's global PR, communications, and marketing director .
Azimkanov said the possible uses of the blockchain include developing greater transparency to reduce fraud, building digital identities for community services, and strengthening developing countries through virtual currencies. Working with SANBA, he said in the announcement, was only the first step in delivering technology to improve and diversify the African economy.
The partnership with SANBA came at a perfect time last year. The Cardano Foundation began its expansion efforts in Africa and reached 54 countries on the continent. For both IOHK and the Cardano Foundation, the goal was to help countries build blockchain-based governance systems to make the region's growth future-proof.
