Hot startup of the month: Nigeria's Veridaq

The blockchain landscape in Africa is rapidly evolving, marked by significant growth and adoption across various sectors.

According to the African Blockchain Report 2024 by CV VC, Africa's share of global blockchain venture deals grew from 1.3% in 2023 to an all-time high of 1.8% in the first half of 2024.

Additionally, nations like Nigeria and South Africa are leading the way by utilizing blockchain technology to boost financial inclusion, optimize supply chains and increase transparency in governance.

The region is experiencing a boom in blockchain startups and creative applications, ranging from peer-to-peer payment systems to decentralized finance (DeFi) platforms.

Despite regulatory uncertainties and infrastructure limitations, the continent's blockchain ecosystem is set to catalyze significant economic transformation and digital innovation.

Innovative startups in Nigeria are in the vanguard, leveraging blockchain for various applications, including combating document fraud and enhancing digital identity verification.

One such is Veridaq, which uses blockchain technology to combat document fraud by enabling users to verify document authenticity through unique digital hashes.

"At Veridaq, we aim to empower organizations and individuals by providing verifiable credentials and competency validation through our AI-powered platform," Veridaq Executive Director and CEO Ayodeji Adewusi, said in an interview with Connecting Africa.

Related:Hot startup of the month: Nigeria's Akowe

He added that the startup's goal is to make hiring and career development decisions more competency-based, accurate and transparent.

Adewusi said Veridaq addresses critical problems in career documentation like fraudulent claims, lack of transparency and inefficiency in background checks.

"Traditional verification methods are often slow, prone to errors and susceptible to manipulation. Veridaq's platform automates the process, ensuring accurate, quick and verifiable data for credentials, references and performance assessments," he explained.

The blockchain element

Adewusi emphasized the importance of using blockchain because the technology ensures data integrity, transparency and security, making credentials tamper-proof and easily shareable.

"By leveraging blockchain, Veridaq guarantees the authenticity of references, achievement and competencies, which facilitates trust and confidence in the verification process," he explained.

Furthermore, Adewusi said that Veridaq employs blockchain technology to secure all data, so that no one can alter or manipulate verified credentials.

"Our platform's end-to-end encryption along with data privacy policies ensures that user information is protected by international standards such as [The European Union's] General Data Protection Regulation (GDPR)," Adewusi said.

Founded in early 2024, Veridaq ensures scalability by utilizing Layer 2 blockchain solutions and off-chain storage for non-critical data, reducing transaction costs and improving performance.

A Layer 2 (L2) blockchain is a network built on top of a Layer 1 (L1) blockchain, like Ethereum or Bitcoin, to improve transaction speed and reduce costs.

"Our platform is designed to handle a high volume of verifications without compromising speed or security," he observed.

Regulation and challenges

Adewusi stated that Veridaq ensures compliance with local and international data protection regulations such as GDPR and Nigeria's Data Protection Act by maintaining robust data privacy policies.

"As a company, we regularly conduct audits to ensure adherence to these laws and work with legal experts to navigate regulatory landscapes in different regions," he noted.

"While Nigeria's regulatory framework presents challenges, Veridaq proactively addresses them by working closely with local regulators to ensure compliance," he explained.

Veridaq Executive Director and CEO Ayodeji Adewusi. (Source: Veridaq)

"We are committed to aligning with national data protection laws and advocating for innovative regulatory frameworks that foster the growth of blockchain-based solutions," he added.

Adewusi said that the company is working tirelessly to ensure that its challenges – like scaling user adoption – are addressed using Layer 2 solutions.

"Using Layer 2 solutions means we optimize blockchain protocols, educating users and organizations about the advantages of blockchain in credential verification," he commented.

He added that Veridaq has partnered with government graduate internship placement programs in four Nigerian states.

Expansion plans and competition

Veridaq's CEO explained that the company plans to expand across Africa and beyond, focusing on partnerships with governments, educational institutions and large employers.

"We aim to further enhance our AI-powered talent assessment tools, refine our blockchain infrastructure and integrate with global career platforms like LinkedIn," he continued.

"Furthermore, we aim to form additional strategic partnerships, enhance our AI and blockchain capabilities, and offer our services to a wider audience of professionals, employers and educational institutions."

There are similar platforms that use blockchain technology for verification like Akowe, which uses blockchain to digitize academic records and verification.

However, Adewusi said that what makes Veridaq different is that it verifies the authenticity of references, achievements and competencies.