--- index: 0 layout: fellow title: Operating a node in Africa fellowName: David cohort: 4 country: Nigeria lat: 6.5244 lon: 3.3792 image: /content/fellowship/David/david-headshot.jpg description: David is documenting the nuts and bolts of running a node in Nigeria and, more generally, on the African continent and all the challenges that come with it. tags: - 2024-cohort-4 - Africa-west --- # NodeBridge: Empowering African Ethereum African node operators have the odds stacked against them. Ethereum is a permissionless, equal-access protocol, but one that exists within the digital space enabled by the internet. In most of continental Africa, the internet is more difficult and more expensive to access than in other places like the US and Europe. This presents **a significant long-term threat to the health of Ethereum protocol** and the next billion Ethereum users, *who are disproportionately going to be African*. Blocks filled with the transactions of African users should be built by African stakers, and staking rewards should accrue to Africn node operators. ## Barriers to Entry There are some simple challenges that African internet users face. **Cost**. The internet is *more expensive* to access in African countries than in developed countries. (needs some research and explanation here) **Infrastructure**. Fibre lines, power, basic financial services are all lacking in the African context. This makes it harder to access the internet, and harder to run a node (which needs consistent power and reliable internet). **Education**. These two problems combine to create a long term viscious cycle: If there are hurdles to afford and access the internet and computers, it's hard to learn about the internet and computers, much less acquire the skills needed to be able to operate an Ethereum node. (we need some more explanation here) Some other things that could go here: Running an Ethereum validator node in Africa comes with several significant barriers that highlight the unique challenges faced on the continent. These obstacles range from infrastructural limitations, governmental policies, high operational costs, and educational gaps, each of which has a direct impact on the feasibility and accessibility of becoming a node operator. Here’s a detailed breakdown of these barriers: ### 1. **Unreliable Electricity Supply** Power is one of the most persistent barriers to running an Ethereum node in Africa. Many African countries suffer from inconsistent and unreliable electricity grids. In rural areas, entire communities may lack any connection to the grid, and even in urban centers, power outages (commonly called “load shedding”) are frequent. This is particularly problematic because Ethereum validator nodes require a stable, uninterrupted power supply to ensure uptime. #### Solutions: - **Solar Power Systems**: Setting up solar panels, inverters, and battery storage can provide a consistent, renewable energy source to keep nodes running. Solar energy is increasingly being adopted in areas where the grid is unstable, allowing operators to stay online 24/7. - **Portable Power Generators**: In cases where solar isn’t feasible, portable generators can provide backup power, though they come with limitations such as noise, fuel costs, and environmental concerns. ### 2. **Expensive and Inconsistent Internet Access** Africa’s internet infrastructure is often inadequate for running Ethereum validator nodes, which require high-speed, reliable, and uninterrupted internet. In some regions, there is no broadband access at all, and mobile internet can be expensive, slow, or unreliable. Service interruptions and slow speeds can lead to penalties for node operators, affecting the profitability of staking. #### Solutions: - **Mobile Data Networks**: In areas without fiber-optic connections, people have turned to mobile data networks. Though mobile data is more widely available, it is still expensive compared to other regions, and the speeds are often insufficient for node operations. - **Satellite Internet (Starlink)**: Satellite solutions like Starlink are emerging as viable options for providing consistent, high-speed internet in remote areas. These systems, although more expensive upfront, offer reliable internet where traditional broadband services do not reach. ### 3. **High Hardware Costs** The cost of acquiring hardware for setting up an Ethereum node, such as powerful computers with sufficient processing capacity and storage, can be prohibitively expensive for many Africans. High-quality computer hardware, which is essential for smooth node operation, often comes with import duties and taxes, making it less accessible. #### Solutions: - **Refurbished Mini PCs**: To reduce costs, node operators are increasingly turning to refurbished mini PCs. These smaller, energy-efficient computers are significantly cheaper than buying new hardware and are often powerful enough to run validator nodes when customized properly. - **Outsourcing Hardware**: In some cases, hardware is sourced from regions where it is cheaper and imported to Africa. While this requires some initial investment, it lowers the overall cost of running nodes on the continent. ### 4. **Government Policies and Regulatory Uncertainty** Many African governments have yet to establish clear regulatory frameworks for blockchain and cryptocurrency activities. In some cases, governments have outright banned cryptocurrency trading or imposed strict regulations that can make it difficult to operate a validator node or engage in staking. Even where blockchain activities are permitted, there may be restrictions on internet usage, importing hardware, or accessing foreign exchange for paying transaction fees. #### Solutions: - **Engaging with Policymakers**: Advocacy groups, including blockchain communities, are working to engage with African governments to help shape positive regulations that foster innovation while protecting users. - **Decentralized Solutions**: Blockchain’s decentralized nature means that, to some extent, node operators can operate independently of restrictive local laws. This, however, depends on the stability of internet access and the ability to engage in international financial transactions. ### 5. **Educational Barriers and Lack of Awareness** A lack of widespread blockchain and Ethereum knowledge is a significant barrier in Africa. Most people in Africa are unaware of how to run a node, and even fewer understand the long-term benefits of doing so. This gap in education is due to limited access to high-quality educational resources and insufficient mentorship opportunities in the field of blockchain technology. #### Solutions: - **NodeBridge Initiatives**: Projects like NodeBridge working to address this educational gap by offering **bootcamps**, **workshops**, and **university programs** focused on blockchain, Ethereum. Through these initiatives, participants are trained to become node operators, providing them with the skills and knowledge they need to navigate the challenges of setting up a node. - **Online Resources and Community Support**: Online platforms offer tutorials, guides, and peer support to help educate aspiring node operators. Communities like **NodeBridge Africa** provide localized support to ensure that educational resources are accessible and relevant to African contexts. ### 6. **Currency Instability and High Inflation** Many African countries struggle with high inflation and unstable currencies, which makes purchasing the required hardware or even participating in staking financially risky. The volatility of local currencies can also make it difficult to plan long-term node operations, as the cost of maintaining the node (in terms of electricity, internet, etc.) can fluctuate unpredictably. #### Solutions: - **Earning in Cryptocurrency**: By running a validator node, Africans can earn rewards in cryptocurrency, which can act as a hedge against inflation. This allows node operators to preserve value in Ethereum (ETH) rather than relying on their national currency. - **Blockchain-Based Financial Solutions**: Ethereum-based decentralized finance (DeFi) solutions offer African node operators access to financial systems that are independent of local currency instability, providing more control over their economic outcomes. ### 7. **Rural Area Exclusion and Development Gaps** In rural African areas, the challenges are even more acute. There is often no electricity, no internet, and limited opportunities for education or economic advancement. These regions are excluded from the global digital economy, and residents often have no access to basic financial services, technology, or reliable infrastructure. #### Solutions: - **Rural Node Setup Transforming Communities**: Setting up an Ethereum validator node in a rural area can have a transformative impact. Installing a solar inverter system to power the node can provide electricity not just for the node, but for the surrounding community. Connecting to the internet via Starlink opens up opportunities for education, communication, and economic activity that were previously out of reach. - **For example**, a node operator in a rural community could use their solar-powered setup to provide electricity for local schools, giving children access to computers and the internet. This, in turn, can enable them to learn digital skills, access global knowledge, and improve their chances of a brighter future. The ripple effect of such infrastructure can lift entire communities out of digital isolation, giving them the tools they need to participate in the global economy. - **Educational Outreach and Digital Inclusion**: By partnering with local schools, tech hubs, and community organizations, NodeBridge and other educational initiatives can bring blockchain knowledge to even the most underserved areas. The resulting access to education, powered by reliable internet and electricity, can help break cycles of poverty and build a foundation for long-term community growth. ### The Potential for Change Running an Ethereum validator node in Africa is not just about participating in Ethereum’s decentralized network; it’s about breaking down barriers and creating new opportunities. Infrastructural challenges like unreliable power, limited internet access, and expensive hardware are significant, but innovative solutions like solar power, satellite internet, and affordable mini PCs are making it possible for Africans to contribute to Ethereum’s global decentralization. By addressing the educational gaps, projects like NodeBridge are empowering Africans with the knowledge and skills needed to run nodes and become active participants in the blockchain ecosystem. Beyond supporting Ethereum’s network, running a node in a rural African area can transform lives by providing critical infrastructure that supports education, financial inclusion, and community development. Through these efforts, Africa is poised to become a leading force in demonstrating the true potential of Ethereum and decentralized technologies. * People gotta eat. Some thoughts about the opportunity cost of investing time and effort into learning about Ethereum when every moment counts toward earning enough money to survive and thrive. * Financial infrastructure. Some thoughts about what banking, fintech, and African money is like, and why crypto is seen as fundamentally different ## Opportunities This section should be about the positive side: Why is Africa positioned to be ready to enable the web3 future? Things that can go here: * Thoughts about how Africans have dealt with the bad financial infrastructure. Thinks like Stokvels (Susus), about how the informal economies work, about how people innovate and work with what they have to get things done. * Youth, unemployment, and the opportunities that remote work can bring for motivated african devs * Starlink, solar, and cheap compute. * Money, trust, and self-sovereignty. Why Africans truly understand the problem of trust in a way that Americans and Europeans don't. Anything else that seems positive about Africans and web3 ## Why Africa Will Show Ethereum's True Potential Africa is uniquely positioned to showcase the transformative power of Ethereum because the continent faces many of the problems that Ethereum is designed to address. Financial exclusion, currency instability, and a lack of government transparency are widespread across African nations. Blockchain-based solutions, such as decentralized finance, identity systems, and transparent governance, can directly impact the lives of millions. Moreover, by running nodes, Africans can actively participate in the governance of the Ethereum network. This inclusion empowers them to have a say in the future direction of the protocol and contribute to shaping the tools that could radically improve their communities. ### Opportunities: Why Africa is Poised to Enable the Web3 Future Despite the challenges, Africa is uniquely positioned to lead in the adoption and development of Web3 technologies. With a growing tech-savvy population, the need for decentralized solutions, and a youthful demographic eager for innovation, the continent offers fertile ground for blockchain and Web3 advancements. Here are the key reasons why Africa is primed to shape the Web3 future: ### 1. **Rapid Mobile Adoption and Digital Leapfrogging** Africa has demonstrated an ability to leapfrog traditional technologies, moving directly to mobile and digital solutions. While many areas lack traditional banking infrastructure, mobile money platforms like M-Pesa have seen widespread adoption, showing that Africans are quick to adopt technological innovations that offer practical solutions to real problems. - **Web3’s Role**: With millions of people already familiar with mobile-based financial solutions, the transition to Web3 applications like decentralized finance (DeFi) becomes more natural. Decentralized, peer-to-peer payment systems can expand financial access and inclusion across the continent, especially for the unbanked and underbanked populations. ### 2. **Decentralized Finance (DeFi) to Solve Financial Exclusion** Africa is home to one of the largest populations of unbanked individuals. Traditional banking systems often fail to provide financial services in remote areas or impose high fees for simple transactions. Blockchain and DeFi can solve these problems by offering low-cost, decentralized financial services that bypass traditional intermediaries, making it possible for anyone with internet access to participate in the global economy. - **Web3’s Role**: DeFi applications on Ethereum and other blockchains can help Africans access loans, savings, and investment opportunities, without needing to rely on traditional banks. These systems are also more transparent, secure, and accessible to individuals in remote areas. ### 3. **Youthful Demographic and Growing Tech Talent** Africa is the world’s youngest continent, with over 60% of its population under the age of 25. This youthful demographic is increasingly tech-savvy, with many young Africans already participating in technology, software development, and blockchain projects. The tech talent pool is expanding rapidly, with initiatives like Web3Bridge,Guild Audits, and various blockchain bootcamps actively training developers and entrepreneurs in blockchain and Web3 technologies. - **Web3’s Role**: This tech-savvy generation is primed to drive Web3 adoption, not only as users but also as innovators, developers, and entrepreneurs. Africa’s young population can leverage blockchain technology to build decentralized applications (dApps), create digital solutions tailored to African needs, and participate in the global Web3 ecosystem. ### 4. **Need for Trustless, Transparent Systems** Many African countries suffer from issues like governmental corruption, inflation, and weak legal systems. This has led to a lack of trust in institutions, financial instability, and economic hardship. Blockchain’s decentralized, transparent nature can provide much-needed solutions by offering immutable records, trustless transactions, and more transparent governance models. - **Web3’s Role**: Ethereum’s smart contract capabilities allow for the creation of decentralized systems that are trustless and auditable. These systems can provide transparency in governance, create fairer financial systems, and reduce the risk of corruption. Blockchain-based identity systems, for example, can offer secure, decentralized alternatives to traditional government-issued documents, improving access to services like healthcare and education. ### 5. **Blockchain Solutions for Supply Chain and Agriculture** Africa’s agricultural sector is one of the largest in the world, but it faces inefficiencies due to a lack of transparency in the supply chain, high transaction costs, and poor infrastructure. Blockchain technology can track the provenance of goods, improve trust between farmers and buyers, and ensure fair compensation for producers. - **Web3’s Role**: Web3-enabled solutions can be applied to agriculture by providing transparent supply chains, tracking products from farm to table. Smart contracts can automate and enforce fair trade agreements, ensuring farmers are paid promptly and fairly. Additionally, tokenized agricultural assets could allow for innovative financing mechanisms for smallholder farmers. ### 6. **Diaspora and Remittances** Africans in the diaspora send billions of dollars back home annually, often paying high fees to traditional remittance services. Blockchain’s ability to facilitate low-cost, cross-border payments can greatly reduce these fees, allowing more money to reach families and businesses in Africa. This can have a huge impact on local economies, especially in rural areas where remittances are a key source of income. - **Web3’s Role**: Cryptocurrency remittance services can eliminate intermediaries and drastically lower the cost of sending money across borders. Platforms built on Ethereum and other blockchains allow for instant, secure, and low-fee transactions, making it easier and more affordable for Africans abroad to support their families back home. ### 7. **Growing Blockchain Ecosystem and Partnerships** There’s already a burgeoning blockchain ecosystem in Africa, with numerous startups, initiatives, and partnerships dedicated to promoting blockchain adoption. Organizations like the **Ethereum Foundation**, **Cardano**, **Celo**, and many others are actively investing in African blockchain projects, seeing the continent as a key market for future growth. - **Web3’s Role**: Africa’s expanding blockchain ecosystem is creating a supportive environment for Web3 innovation. From local startups to global partnerships, Africa is becoming a hub for blockchain experimentation, with real-world use cases being tested and deployed. Initiatives like **NodeBridge** and **Guild Audits** are directly contributing to the blockchain ecosystem by providing training, infrastructure, and support to aspiring developers and node operators. ### 8. **Community-Driven Innovation** Africans are naturally community-oriented, and this aligns perfectly with the decentralized, community-driven ethos of Ethereum. From local cooperatives to village savings groups, African communities have long relied on collective action to solve problems. Web3’s decentralized governance models and token-based economies can enhance these traditional systems, allowing communities to self-organize and manage resources more efficiently. - **Web3’s Role**: Decentralized autonomous organizations (DAOs) can be leveraged to empower communities to manage projects, allocate resources, and drive local development. Tokenized incentives and governance models could enable collective decision-making on issues like resource allocation, infrastructure development, and social projects. ### 9. **Untapped Market and Innovation Potential** With over 1.4 billion people, Africa represents an untapped market for Web3 technologies. As the global Web3 ecosystem matures, Africa’s demand for decentralized solutions will only grow. The continent’s unique challenges provide a vast opportunity for innovation, with African developers, entrepreneurs, and communities designing solutions that cater to local needs. - **Web3’s Role**: The untapped potential for Web3 adoption in Africa is enormous. Whether through financial inclusion, governance, or supply chain transparency, the continent offers endless opportunities for blockchain-driven innovation. As Web3 technologies continue to evolve, Africa is set to be a global leader in testing and implementing these solutions at scale. ### key take away Africa’s unique challenges and opportunities make it the perfect place to drive the Web3 future. With a young, tech-savvy population, a need for decentralized solutions, and a rapidly growing blockchain ecosystem, Africa is positioned to show the world how blockchain and Web3 technologies can empower individuals, transform industries, and unlock economic growth. From solving financial exclusion, Africa will play a key role in defining the global future of Web3. ## The long term problem We believe, as many do, that many of *the next billion* users of Ethereum are going to be African. If we take this as obvious, and also look at how the vast majority of internet infrastructure is hosted and run off-shore, we can very clearly see a looming problem: **Users on the continent will depend on nodes that run off-continent**. As a fundamentally peer-to-peer protocol, Ethereum has thrived by being accessible to everyone, and it's always been one of Ethereum's values to remain accessible to hobbyists and home node operators. That's why `ethash` was designed to be resistant to ASICs, and why (I wonder if there's an equivalent example for home stakers in a post-merge world? seems like we've thrown home stakers under the bus a bit, tbh...). --- # Hook, Problem statement, Real Observation ## Nuts&Bolts * Electricity * Internet * Hardware ## Human Problems * General Education, Employment * (government stuff) // intuition is to not talk about government stuff # Opportunities, Future, Potential ## Fintech, Banking, Money, and Trust/Companies. * points 1,2,4,6,9 ## Demographics and Africa's special powers * youth and innovation * community * # Nodebridge's Mission ## heading 1 ## heading 2