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We take a deep dive into Project UBU and get insights from a blockchain developer at a leading SOFTWARE DEVELOPMENT COMPANY shaping the future of blockchain.
As blockchain applications become more commonplace, it’s important to take a deeper look into some of the applications being built to help us understand how they fit into the broader development landscape.
This is especially relevant when blockchain applications tie into other prominent topics, like Universal Basic Income (UBI). In particular, SovTech’s partnership with Project UBU shows how blockchain can be used to build applications that change the way society operates when it comes to exchanging value.
As SovTech was recently nominated under the blockchain category for Project UBU for the AppsAfrica Awards, it’s also the perfect time to get a deeper insight into how this type of project works—which I did by chatting with SovTech’s full-stack developer, Nusrath Khan:
“Most people struggle to wrap their heads around economic concepts; it’s difficult to think about money if it’s not backed by anything, like gold or coal, or oil. We’re moving into a different way of exchanging value.” – Nusrath Khan
To really understand Project UBU, it’s helpful to understand UBI first.
To put it simply, the idea behind UBI is to issue money in a systematic way that empowers people to live above the poverty line and allows them to gain access to the current economic system (which they are currently excluded from). But in truth, that’s only one potential application of UBI, as people see this system working in different ways, depending on where they’re from.
As there are so many ways of thinking of UBI, it can be difficult to actually implement it, which is why Project UBU is regarded as a very successful initiative, as it is the first project of its kind to be launched anywhere in the world.
As Khan summarizes:
“The goal of Project UBU is to solidify its own currency through Universal Basic Income, which makes income accessible to those who don’t have easy access to it, for example, people without bank accounts or valid ID, who can’t get access to a bank or a grant. All these people that are just getting left out of the system.
Project UBU tries to incorporate everyone into its ecosystem, because all you need to join is a cellphone number and a computer or smartphone (or any device with internet access). You get issued your free 100 UBUs every day, which you can then go and spend at vendors. The cool thing is that anyone can sign up to be a vendor, and you can decide what price you want to put on your goods, as there is no value ascribed to one UBU at the moment.”
While the long-term goals of the project are yet to be realized, the SovTech team is currently building an asset exchange infrastructure, which will allow for greater economic impact (i.e., allowing people to buy and exchange UBX cryptotokens).
What is remarkable about the project is that it was entirely funded through the sale of ERC-20 Ethereum tokens, an entire Initial Coin Offering (ICO) process that was managed by the SovTech team. The current infrastructure is also built on a private blockchain, which means that it can only be accessed by those who have been granted specific permission.
When it comes to how the project has been rolled out, Khan also adds:
“Project UBU has been trialed at restaurants like RocoMamas, where it was used to promote certain meal specials. It is still in its early stages, but the user base has increased from 5,000 to 20,000 in about a month, and there are some interesting deals being loaded by vendors, like data bundles and airtime deals.”
To give a brief overview of how the project will evolve, Khan says the following:
“While I can’t disclose all the details right now, we eventually want people to be able to take their UBUs and exchange them for Rands.”
The way Khan sees it, the future of these kinds of projects will include more rewards-based projects that run off blockchain (which operate on a similar premise to the UBU), as well as more widespread experimentation with the project in different areas, even as implementing at scale remains a challenge.
It’s really quite a lot to take in and understand, but it’s encouraging to hear about successful implementations of the project, for example, in Langa, Cape Town, where small business owners are continuously being empowered with the liquidity that a system like Project UBU provides.
