Blockchain at a crossroads: From Davos hype to global impact

Opinion by: Advit Nath, founder and CEO at BlueBridge Global

The snow-capped peaks of Davos in 2023 witnessed blockchain technology being heralded as a transformative force for global good. Two years later, the landscape is radically different, yet familiar challenges linger. While crypto markets soar, regulatory frameworks mature, and innovation thrives, a critical question remains — has blockchain truly lived up to its potential to drive social impact, or does the industry continue circling promises without achieving scalable progress?

Blockchain’s role in humanitarian sectors

Promising developments in blockchain’s role across the humanitarian and development sectors since 2023 reveal progress. In Rwanda’s eastern region, where challenging soil and weather conditions limit agricultural output, smallholder farmers now benefit from accessible tractor rentals through blockchain-enabled platforms. The Hello Tractor application leverages blockchain and low-cost devices to transparently track equipment usage, payments and maintenance, thus boosting agricultural productivity and improving incomes for hundreds of thousands of farmers.

Similar transformative influence has emerged in the Philippines, Kenya and Bangladesh, demonstrating how tokenization of real-world assets enables tracking across global supply chains. EY’s OpsChain technology leverages blockchain to enhance transparency and efficiency in public finance, enabling governments to monitor allocation, spending and revenue collection for services and infrastructure — supporting accountability and reducing potential fraud.

Development-focused arms of major blockchain networks have deployed significant funding to support new ideas, including initiatives for humanitarian development. 

Over a decade, Polygon allotted $640 million of tokens in community grants to help blockchain projects on the Polygon and Ethereum networks. The Stellar Development Foundation has committed millions of dollars of tokens since 2023 to projects focusing on financial inclusion and cross-border payments. These investments demonstrate growing capital support for blockchain-driven social impact — a critical driver for experimentation and deployment.

Challenges that persist

The accessibility gap remains significant. Blockchain solutions often rely on robust internet connectivity, access to digital devices and technical literacy. Rural areas in sub-Saharan Africa and South Asia, where humanitarian applications are most needed, show internet penetration rates of 36% and 43%, respectively, according to the World Bank. While some solutions adapt their platforms to low-tech environments, broader adoption requires systemic infrastructure improvements.

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Scalability continues as a fundamental hurdle. Despite transitioning to proof-of-stake, networks like Ethereum face high transaction costs during peak periods. Layer-2 solutions such as Polygon mitigate some issues but add complexity for end-users, particularly in regions with limited technical expertise. The challenge increases during periods of high market volatility when network congestion can make transaction costs prohibitive for humanitarian applications.

Ecosystem fragmentation impedes global scaling potential. Interoperable solutions like Polkadot and Cosmos are gaining traction but lack widespread deployment in large-scale humanitarian applications. Cross-chain collaboration must become the standard practice for blockchain to transform global development effectively. The current siloed approach limits the potential for creating comprehensive solutions that could address multiple development challenges simultaneously.

Regulatory evolution

The regulatory landscape has evolved significantly, with the European Union’s Markets in Crypto-Assets (MiCA) regulation setting a new global standard. MiCA’s framework for crypto-assets, stablecoins and trading is an example of clarity the industry needs, despite some shortcomings, particularly for smaller firms and startups. Its approach to stablecoin oversight and reserve requirements has influenced cross-border humanitarian applications, providing greater certainty for blockchain-based financial inclusion initiatives. 

Major jurisdictions outside the EU continue to take divergent approaches. Up to this point, the United States maintains a complex regulatory landscape split between multiple agencies, while Singapore has embraced a licensing framework supporting controlled innovation. Jurisdictions like Japan have implemented strict but clear guidelines for crypto assets. This regulatory fragmentation creates particular challenges for cross-border humanitarian initiatives. Even widely adopted stablecoins like USDC, despite their robust reserve backing and regular audits, face varying requirements across regions, complicating their use in global aid assistance distribution and financial inclusion projects.

Recent regulatory developments in other major financial centers suggest a gradual convergence toward MiCA-inspired approaches. Regulators increasingly distinguish between speculative cryptocurrency trading and blockchain’s utility in solving real-world problems. This evolving regulatory landscape could provide clearer pathways for humanitarian blockchain applications while maintaining necessary safeguards. The key question remains whether other jurisdictions will follow the EU’s lead in creating comprehensive frameworks that balance innovation with consumer protection.

The road ahead

In 2025, blockchain technology stands at a decisive moment. Solutions like Hello Tractor and EY’s Opschain demonstrate blockchain’s capacity to deliver measurable progress. Future success, however, demands prioritizing collaboration, inclusive design and pragmatic regulation. The achievements of the past two years offer encouragement, but upcoming developments will determine whether blockchain becomes a cornerstone of global growth — or another missed opportunity. The technology’s potential for transformative impact remains clear. The challenge lies in bridging the gap between promise and practical implementation.

Opinion by: Advit Nath, founder and CEO at BlueBridge Global.

This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.