IOHK, developer of the Cardano blockchain, is formalizing a major contract with Ethiopia. According to the company, this is the largest blockchain deployment in the world. Enough to drive up the ADA?
What is the main factor behind the value of Ether, which is chaining ATH? Without hesitation, the significant activity on Ethereum and therefore the size of its ecosystem. Rival blockchains are not unaware of this.
To compete with Ethereum, they must therefore demonstrate the value of their technology and sign contracts. Cardano has just such an announcement to make. Its developer, IOHK, is formalizing a government contract.
The company reports that it has signed a partnership with Ethiopian authorities to deploy blockchain technology in the country. According to IOHK, this is nothing less than the most significant deployment to date in the world.
The project plans to use the Cardano blockchain to deploy a new identity management solution across schools in Ethiopia. This includes 3,500 schools and 5 million students.
The goal of this project is to create tamper-proof school records for all schools and students. Africa is a major market for IOHK CEO Charles Hoskinson. Several months ago, the executive mentioned several upcoming contracts on the continent.
In addition to Ethiopia, the publisher is negotiating in South Africa, Kenya and Nigeria. Hoskinson, an unloved figure among Ethereum enthusiasts, was also referring to a contract with a telecom operator in Tanzania.
For IOHK, partnered with Atala Prism for identity management, Cardano should ultimately “democratize social and financial services for the 1.7 billion unbanked people in Africa. “
That democratization has yet to be built, however. Cardano starts with Ethiopia and its 110 million inhabitants. The country has launched a digital transformation plan, Digital Ethiopia 2025. However, its recent news also highlights its political and economic instability.
This deal has, by the way, little influence on the price of ADA, Cardano’s native token, for now. The cryptocurrency was trading at $1.28 on CoinMarketCap at the time of writing, up 1.57%.
The first area where Cardano stands out is in staking. According to StakingRewards, the network holds the top spot in this area. The ADA value allocated to staking is equivalent to approximately $26.4 billion.