Millions of Bitcoin (BTC) users that the internet-reliant Bitcoin protocol was unable to reach could now be brought into the mix by an invention employing the cellphone network (GSM). The new SMS-based service is called Machankura, a slang word for money in South Africa, and was created by South African developer Kgothatso Ngako.
From Pretoria, South Africa, KG, as he is known to his friends, has high hopes that millions of Africans will be able to use it over text messaging.
English-speaking KG regularly listened to podcasts and audiobooks while driving to work when he first learned about Bitcoin. His 20-minute trip to the Council for Scientific and Industrial Research (CSIR) in South Africa, where he worked as a software developer, soon became a two-hour walk as he went into a Bitcoin knowledge journey.
According to Ngako, Machankura users are free to call any predetermined number of their choosing. The user is then given the choice of learning more about Bitcoin or signing up for an account requiring them to generate a five-digit pin. After completing all of this, the user can send and receive Bitcoin through text messages.
Ngako explains that the primary motivation behind the birth of Machankura was that 94% of financial transactions in Africa take place using the text message protocol known as USSD, as opposed to the remaining 6% using mobile apps. In addition, the choice to develop an SMS-based solution for accepting and utilizing Bitcoin was simply because, in his opinion, internet connectivity is one of the most significant barriers for people in Africa.
He further explained that this year featured many discussions about USSD or enabling Bitcoin on feature phones. And as much it could come across as a side project to many, he decided to build something in that line. In his words, that's how Machankura came to life.
Source: CoinTelegraph
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This development allows Lightning-compatible wallets to transmit Bitcoin to phone numbers. Companies like Bitrefill, Azteco, and Paxful have already expressed interest in the solution offered by Machankura. Through various methods, each of these networks promotes Bitcoin adoption in Africa. The three businesses are also exploring opportunities for cooperation.
KG expresses prospective issues that might come up with the innovation in time. He described the first as the possibility of the government outlawing or otherwise reacting badly to Bitcoin.
He also talked about how the commission fees for purchasing the voucher might hinder some consumers. While KG is aware of using a centralized company to onboard users into Bitcoin, there's a problem with them not taking the time to learn about the technology.
Additionally, because of the custodial nature of the service, it goes against the Bitcoin concept of "not your keys, not your currencies." He, therefore, seeks a method of using SIM cards as private keys.
This innovation is impressive and exciting, and its founder has done well to express the different sides of the project.
How well do you think this innovation would hold and stand its ground? Do you think the issues associated with it can find sustainable solutions? Please comment with your thoughts.
