The evolution of blockchain technology is moving forward. It’s time to take a closer look at its progress, challenges, and potential in humanitarian and development sectors.
At the 2023 meeting in Davos, people celebrated blockchain as a game-changer for global good. Fast forward two years, and while crypto markets have surged, regulatory frameworks have matured, and innovation is thriving, one big question remains: Has blockchain really delivered on its promise to create social impact? Or is the industry still circling around unfulfilled potential?
There have been promising advancements in how blockchain is being used in humanitarian efforts since 2023. For instance, in eastern Rwanda, smallholder farmers can now rent tractors through blockchain-enabled platforms. The Hello Tractor app uses blockchain technology and low-cost devices to keep track of equipment usage, payments, and maintenance. This boosts agricultural productivity and helps increase incomes for hundreds of thousands of farmers.
Similar positive changes have been seen in the Philippines, Kenya, and Bangladesh. Tokenizing real-world assets allows for better tracking across global supply chains. EY’s OpsChain technology enhances transparency and efficiency in public finance. It helps governments monitor how funds are allocated, spent, and collected, which supports accountability and reduces the risk of fraud.
Major blockchain networks are also stepping up. Over the last decade, Polygon has invested $640 million in community grants to support projects on the Polygon and Ethereum networks. The Stellar Development Foundation has committed millions in tokens since 2023 to initiatives focusing on financial inclusion and cross-border payments. These investments show that there’s growing support for blockchain-driven social impact, which is crucial for encouraging experimentation and deployment.
However, challenges still exist. The accessibility gap is a significant issue. Many blockchain solutions rely on solid internet connectivity, access to digital devices, and technical know-how. In rural areas of sub-Saharan Africa and South Asia, internet penetration rates are only 36% and 43%, according to the World Bank. While some solutions are adapting to low-tech environments, wider adoption needs systemic infrastructure improvements.
Scalability is another major hurdle. Even with Ethereum’s shift to proof-of-stake, high transaction costs during peak times remain a challenge. Layer-2 solutions like Polygon help reduce some of these issues, but they can complicate things for end-users, especially in areas with limited technical expertise. This problem worsens during market volatility when network congestion can make transactions too costly for humanitarian efforts.
Fragmentation within the ecosystem also hampers global scaling. Interoperable solutions like Polkadot and Cosmos are gaining traction, but they haven’t been widely adopted in large-scale humanitarian applications yet. For blockchain to effectively transform global development, cross-chain collaboration needs to become standard practice. The current siloed approach limits the potential for comprehensive solutions that could tackle multiple development challenges at once.
On the regulatory front, significant changes have taken place. The European Union’s Markets in Crypto-Assets (MiCA) regulation has set a new global standard. This framework for crypto-assets, stablecoins, and trading provides the clarity the industry needs, even if it has some shortcomings, especially for smaller firms and startups. MiCA’s approach to stablecoin oversight and reserve requirements has influenced cross-border humanitarian applications, offering more certainty for blockchain-based financial inclusion efforts.
Other major jurisdictions outside the EU are taking varied approaches. The United States continues to have a complex regulatory landscape divided among several agencies. In contrast, Singapore has embraced a licensing framework that supports controlled innovation. Japan has implemented strict but clear guidelines for crypto assets. This regulatory fragmentation creates challenges for cross-border humanitarian initiatives. Even popular stablecoins like USDC face different requirements in various regions, complicating their use in global aid distribution and financial inclusion projects.
Recent regulatory changes in other financial centers suggest a gradual alignment with MiCA-inspired approaches. Regulators are increasingly distinguishing between speculative cryptocurrency trading and blockchain's practical utility in solving real-world problems. This evolving regulatory landscape may provide clearer pathways for humanitarian blockchain applications while ensuring necessary safeguards. The key question is whether other jurisdictions will follow the EU's lead in creating comprehensive frameworks that balance innovation and consumer protection.
As we look toward 2025, blockchain technology is at a crucial moment. Solutions like Hello Tractor and EY’s OpsChain demonstrate blockchain's ability to deliver measurable progress. However, future success will depend on prioritizing collaboration, inclusive design, and practical regulation. The achievements of the past two years are encouraging, but upcoming developments will determine whether blockchain becomes a cornerstone of global growth or another missed opportunity. The potential for transformative impact is clear, but bridging the gap between promise and practical implementation is the real challenge.