Bitcoin as a means for human rights advancement
Here are some instances where Bitcoin is currently being utilized for human rights initiatives:
Organizations like Fedi are also taking initiative in addressing these hurdles. Fedi has developed an all-encompassing app tailored for users in the Global South, integrating Lightning, ecash, and various freedom technologies into one platform. This app provides users seamless access to Bitcoin and resources that can aid them in navigating oppressive financial systems. Moreover, Machankura is focusing on enabling Bitcoin transactions through feature phones, which remain widely used across numerous regions in Africa. By transforming these basic devices into Bitcoin hardware wallets, Machankura is facilitating participation in the Bitcoin economy for those lacking smartphones or internet access.
Bitcoin Dada empowers African women by teaching them how to invest in and utilize Bitcoin. In many patriarchal African cultures, women are often barred from owning property. Bitcoin offers a pathway to bypass these restrictions, allowing them to save securely without drawing attention.
Bitcoin Dua functions as a Bitcoin-focused circular economy and community hub in Ghana. It provides community members with education not only on Bitcoin and its use but also on acquiring skills that enable them to earn in Bitcoin. This is especially pertinent in Ghana, which had the world’s poorest performing currency in 2022 and continues to experience depreciation against the US dollar.
While these Layer 2 innovations and solutions come with their own trade-offs, they constitute a meaningful advancement in enhancing Bitcoin’s accessibility for those who require it the most. The Lightning Network, for instance, does involve trusting that transactions will ultimately be reconciled on the main Bitcoin blockchain, introducing associated risks. Nevertheless, for many users, the advantages of reduced costs and accelerated transactions outweigh these uncertainties, especially in areas where traditional financial systems are failing.
Another innovation aiding in tackling these issues is the creation of ecash, a non-traceable variant of Bitcoin that can be transferred with virtually no costs. Ecash ensures user privacy during transactions, an essential function for individuals living in authoritarian landscapes where financial oversight is prevalent. By merging the low costs of the Lightning Network with the privacy attributes of ecash, users can tap into a financial ecosystem that is both affordable and secure.
Addressing obstacles with Layer 2 technologies and innovation
Lyudmyla Kozlovska, President of the Open Dialogue Foundation, has been advocating to authorities in the U.S. and Europe that Bitcoin serves as a financial lifeline for pro-democracy advocates operating under authoritarian regimes. She contends that dictators often sever dissidents from the conventional financial system, rendering Bitcoin their primary medium for transactions.
As Bitcoin progresses, we are likely to witness further innovations aimed at overcoming these challenges. Developers, entrepreneurs, and advocates are diligently working to create tools that enhance Bitcoin’s accessibility, security, and user experience. Meanwhile, organizations such as the Human Rights Foundation are pivotal in uniting these stakeholders to ensure Bitcoin remains a practical resource for human rights advocacy.
Source: bitcoinmagazine.com
The Lightning Network acts as a secondary protocol layered on Bitcoin that facilitates quicker and cheaper transactions. By processing smaller, routine transactions off the main Bitcoin blockchain, the Lightning Network alleviates congestion and curtails fees. This aspect is crucial for users in the Global South, where even minor transaction costs can represent a substantial fraction of their earnings. In countries like Nigeria, plagued by rampant inflation and currency depreciation, the capability to send and receive Bitcoin at minimal expense can profoundly impact lives.
The efforts of these individuals and organizations have laid the groundwork for what could be termed the “Empowerment Epoch” — Bitcoin’s fifth phase, where it becomes closely associated with human rights. However, this transition is fraught with challenges.
A primary obstacle to Bitcoin’s adoption in human rights arenas is the elevated transaction fees on the fundamental layer. As Bitcoin’s demand has increased, so too have the costs of utilizing the network. For individuals in economically struggling regions, these fees can be a significant barrier, hindering their ability to securely manage their Bitcoin or employ it in daily transactions. This is where Layer 2 solutions, such as the Lightning Network, become vital.
During this year’s Oslo Freedom Forum, Lyn Alden presented a convincing argument that Bitcoin has reached a sufficient level of liquidity to be effectively utilized within a human rights framework. With a market capitalization exceeding .2 trillion, Bitcoin now exhibits lower volatility compared to a decade ago, making it a more effective instrument for assisting individuals who have faced financial exclusion. Historically, Bitcoin’s price fluctuations posed challenges for its utilization in such critical areas, but as its market cap has increased, its valuation has steadied, enabling more impactful applications.
