Decentralizing the Sharing Economy with Blockchain

1x1.trans - Decentralizing the Sharing Economy with Blockchain

Decentralizing the Sharing Economy with Blockchain

Society conducts business in a variety of ways and like other aspects of life, the way we do business is constantly evolving. One such economic model of conducting business is on a peer-to-peer (P2P) basis, which is based on the sharing of access to goods and services. This method of business is often referred to as the “sharing economy” and has been in existence for thousands of years. The sharing economy eliminates the need for centralized entities to provide goods and services and allows the people to do this among themselves in a decentralized manner. In recent years the sharing economy has begun to flourish again with likes of Uber, Airbnb, Turro, eBay and many more. The internet has connected us all and allows us to prosper with a sharing economy business model once again, and it’s just getting started.

Transformation of the Sharing Economy

The dawn of the internet transformed the sharing economy and opened many avenues for conducting business on a peer-to-peer basis in the past 20 years. However, today’s sharing economy still requires third party intermediaries which grow into large corporations by taking significant portions of the value created by the people. But now, the sharing economy is undergoing another transformation with the introduction of blockchain technology and cryptocurrency. Blockchain technology has the ability to cut out even more aspects of centralization in the sharing economy by facilitating the exchange of value in a secure and decentralized manner on a true peer-to-peer basis. For instance, blockchain technology can run software and applications in a decentralized manner, spreading the wealth among the people who fuel the sharing economy, and cutting out the need for a centralized third party. These blockchain applications will revolutionize the sharing economy, just as the internet did. The only problem we face now, is the integration and implementation of blockchain technology into the sharing economy.

Implementation of blockchain in the sharing economy

Blockchain technology and cryptocurrency are still in their infancy. However, technological change happens at an exponential rate and methods are already being developed to merge the old sharing economy and new sharing economy together. One such method is provided by a company known as Digits. Digits is developing a cryptocurrency payment solution that allows users to transact crypto just like fiat using any debit or credit card. The payments solution developed by Digits can serve as a good in-between solution for operating in the traditional sharing economy and the innovative blockchain sharing economy. The implementation of Digits is the first step in the right direction as it easily facilitates cryptocurrency payments in the traditional system. As well, Digits can be used in the new and innovative blockchain applications for the sharing economy by bring in new users and allowing them to easily make crypto payments with their personal debit or credit card. Overall, Digits can provide the seamless integration of crypto payments in the traditional and innovative markets, making it a viable development in the blockchain and cryptocurrency industry.

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