Ethereum layer-2 project, Lisk, declares the successful culmination of its incubator's inaugural group
In the rapidly evolving world of blockchain technology, two major players, Ethereum and Lisk, are making strides in supporting African startups, each with a unique approach.
While the Ethereum Support Program has been investing in African blockchain companies such as Web3Bridge, Borderless Africa, and the African Blockchain Institute, the details of these investments have not been explicitly disclosed. However, Ethereum's ecosystem is witnessing a surge in institutional investment, with treasury companies increasing their ETH holdings and fostering growth in decentralized finance (DeFi). This expanding investment could indirectly benefit startups globally, including those in Africa, by enhancing access to crypto-based financial services and payment solutions [2][3].
Ethereum's technology also empowers financial inclusion through smart contracts that reduce costs and improve trust, particularly for the unbanked and underserved populations. This aligns with goals for African startups leveraging blockchain [2][4].
In contrast, Lisk's Blockchain Incubation Hub provides direct blockchain support to African startups. This is evident in the case of South African startup LovCash, which uses Lisk's technology to digitize informal traders and address a significant $10 billion FMCG data gap in the region [5]. Lisk's focus is on practical applications of blockchain technology for real-world problems like informal market digitization, indicating targeted startup incubation and ecosystem development within Africa's blockchain space.
Comparing the two programs, Ethereum's support is more global and institutional in scale, driven by treasury companies and financial institutions, and facilitates broad blockchain infrastructure and smart contract platforms [3][4]. On the other hand, Lisk's Blockchain Incubation Hub has a regional focus on Africa, providing startups with direct tech transfer and enabling them to apply blockchain to local markets and data gaps [5].
The StarkWare fund, another Ethereum layer-2 protocol developer, launched a $4 million fund in February, targeting startups looking to build on the Starknet protocol.
In summary, Ethereum’s support for African blockchain startups is more indirect, stemming from major institutional investments and enabling technologies that foster financial inclusion and decentralized applications. In contrast, Lisk’s Blockchain Incubation Hub actively supports African startups with blockchain infrastructure and incubation, addressing real-world challenges in the African informal economy [2][3][4][5]. These initiatives underscore the growing interest and potential of blockchain technology in addressing Africa's unique economic challenges.
References:
[1] Dominic Schwenter is the chief operating officer at Lisk. (N/A)
[2] The Ethereum Support Program has invested in African blockchain companies. (N/A)
[3] The Ethereum ecosystem is experiencing a strong institutional investment surge. (N/A)
[4] Ethereum's technology enables financial inclusion through smart contracts. (N/A)
[5] Lisk has launched support programs for African startups to build products on its infrastructure. (N/A)
- The Ethereum Support Program, while not explicitly disclosing the details of its investments, has backed African blockchain companies like Web3Bridge, Borderless Africa, and the African Blockchain Institute.
- As treasury companies increase their ETH holdings and foster growth in decentralized finance, Ethereum's expanding institutional investment could indirectly benefit African startups by enhancing access to crypto-based financial services.
- In contrast, Lisk's Blockchain Incubation Hub offers direct blockchain support to African startups, as evident in the case of South African startup LovCash, which uses Lisk's technology to digitize informal traders.
- This regional focus on Africa by Lisk's Blockchain Incubation Hub provides startups with direct tech transfer, enabling them to apply blockchain to local markets and data gaps.
- Another Ethereum layer-2 protocol developer, StarkWare, launched a $4 million fund in February, targeting startups looking to build on the Starknet protocol, indicating a continued global interest in Ethereum's technology.
