For generations, the informal sector has thrived in the shadows, operating outside the structured frameworks of traditional economies. It is the engine that keeps many nations moving, yet it remains overlooked, undervalued, and underserved. From bustling markets to skilled workers, the informal sector accounts for more than 60% of the global workforce. Yet, these workers often face insurmountable challenges when trying to access financial services, social protections, or growth opportunities.
Let’s take a journey through the past, uncover the systemic barriers faced by informal workers, and see how blockchain technology is lighting the way to a more inclusive and empowering future.
The unseen backbone of global economies
Picture this: it’s 2000. A street vendor named Binta in Lagos sells akara (bean cakes) every morning. Her stall is her lifeline, yet everything she earns is cash-based, undocumented, and vulnerable to theft or loss.
When Binta falls ill, she can’t work, and without health insurance or savings, her family suffers. She dreams of expanding her business but has no access to loans—banks won’t lend to someone with no formal credit history.
In 2010, in Jakarta, we meet Agus, a skilled motorbike repairman. His craftsmanship is unmatched, yet his work is informal. Without a registered business, Agus struggles to attract larger clients or improve his shop. His income fluctuates wildly, making it impossible to plan for the future.
These stories resonate globally. The informal sector is a hub of creativity and resilience, yet its workers are excluded from traditional systems that could uplift them. They operate without the safety nets many of us take for granted: loans, insurance, pensions, and even recognition for their hard work.
This is where these informal workers need to travel onchain with base technology, a revolutionary platform for inclusion. With blockchain, we can break down the barriers that have held informal workers back for decades.
What if Binta could create a digital work profile that records her earnings, builds her credit history, and opens doors to microloans?
What if Agus could tokenize his repair shop, inviting community members to invest in his growth in exchange for a share of his success?
Blockchain offers these possibilities and more. Here’s how:
1. Immutable Digital Work Profiles
At the heart of blockchain’s promise is the ability to create secure, unchangeable digital records. For informal workers, this means they can document their skills, earnings, and contributions over time.
Let’s revisit Binta. Using a blockchain-based mobile app, she records her daily sales. Over a few months, her profile shows consistent earnings, proving her business’s viability. This profile becomes her passport to financial services previously out of reach.
Agus, too, benefits. By uploading photos of his completed projects and customer reviews to a decentralized platform, he builds an online portfolio visible to potential clients worldwide.
2. Easy Access to Microloans
One of the biggest hurdles informal workers face is accessing credit. Traditional banks require collateral, lengthy applications, and formal employment records—all of which exclude the informal sector. Blockchain-powered DeFi (Decentralized Finance) changes this.
With DeFi platforms, Binta can stake her digital earnings history as collateral for a microloan. Smart contracts ensure the loan terms are fair and transparent, with repayment schedules tailored to her income flow. Agus can do the same, securing funds to buy better tools or expand his workshop.
3.Affordable Insurance and Social Protections
The informal sector is particularly vulnerable to financial shocks. Medical emergencies, accidents, or natural disasters can wipe out years of hard work in an instant. Blockchain provides a solution through decentralized insurance.
Imagine Binta joining a blockchain-based insurance pool. For a small monthly contribution, she gains coverage for health emergencies. If she falls ill, a smart contract automatically processes her claim, ensuring she receives support without delays or bureaucracy.
Similarly, Agus could insure his tools against theft or damage. This layer of security allows informal workers to operate with confidence and stability.
4. Tokenization: A New Way to Raise Capital
Tokenization allows informal workers to convert their businesses into digital assets. These tokens represent a stake in the business, enabling community members or global supporters to invest.
Binta could offer tokens to her loyal customers, who then receive discounts or a share of her profits. This not only raises funds but also fosters a sense of community ownership. Agus could tokenize his repair shop, attracting funds to hire apprentices or purchase state-of-the-art equipment.
Base Technology: The Backbone of Onchain Empowerment
Base Technology is the perfect ally for this transformation. With its low transaction costs, scalability, and user-friendly ecosystem, Base makes blockchain accessible to everyone, even in regions with limited digital infrastructure.
Picture a mobile-friendly app built on Base. It’s designed specifically for informal workers, with features like:
> Work Profile Creation: In just a few taps, users can document their earnings, skills, and projects.
> Loan Applications: Simple and quick access to DeFi platforms.
> Insurance Enrollment: Affordable plans tailored to informal workers’ needs.
> Tokenization Tools: A seamless way to create and manage business tokens.This app, available in local languages and optimized for low-data environments, ensures no one is left behind.
Why This Matters: Bridging the Gap
Formalizing the informal sector isn’t just an economic opportunity; it’s a matter of justice and dignity. For too long, workers like Binta and Agus have been the backbone of their communities without receiving the recognition or support they deserve.
Blockchain technology, championed by initiatives like Travel-Onchain and powered by Base, can bridge this gap. It transforms informal work into a documented, valued, and empowered part of the global economy.
A Vision for the Future
Imagine a world where every worker, regardless of their status, has access to the tools and protections they need to thrive. A world where a carpenter in Rio de Janeiro, a farmer in rural India, or a vendor in Lagos can participate fully in the digital economy.
This isn’t just a dream; it’s a reality within reach. By traveling onchain with Base Technology, we can unlock the potential of the invisible workforce and create a more inclusive, equitable future.
The journey begins now. Are you ready to take the first step?
Note: This is me crafting out a project idea that could help informal sector to scale by bring there businesses Onchain.
