Blockchain Technology Companies and the Sharing Economy
Blockchain technology companies have revolutionized how industries operate. We'll explain how this is changing the sharing economy we've come to love.
Keyword(s): blockchain technology companies
The sharing economy has taken over many aspects of our lives.
The largest tech companies on the internet - Facebook, Airbnb and more - actually rely on users. Contributions by these users create tangible value for their businesses. Blockchain, however, may be ready to disrupt all of these huge companies.
This technology allows for a decentralized method of exchanging value. Companies are already taking advantage of blockchain for everything. Even a platform where you sell selfies and blood.
It's a massive revolution, but do you know exactly how it works?
Read on for everything you need to know about how blockchain technology companies are affecting the sharing economy.
A True Peer to Peer World
The idea of blockchain is what the sharing economy should be.
This is a space with no intermediaries to take a percentage of a payment or who can control a transaction. Using blockchain tech alongside the sharing economy means no central authority is needed.
Blockchain Technology Companies Allow for Decentralization
The current sharing economy seems democratic. But in truth, the large companies act as go-betweens. Take the example of Uber.
The service is a ride sharing app. However, you don't make an agreement directly with a driver. You are still dealing with a centralized platform that charges fees and acts as the ultimate authority.
Blockchain tech means control of the system is spread out on a peer to peer network. Decentralization in its truest form.
The Rise of Smart Contracts
One phenomenon that's already in use by blockchain technology companies is the smart contract. Smart contracts solve the trust issues involved in an exchange. They are pieces of code that govern transactions.
A practical example would be in the case of a sale of a car. The key to the car would work only if payment for the sale has gone through. And the payment would have to happen in exactly the way the sale contract specified.
With a system like this, only the rightful owner would ever have access to the car.
Smart contracts are a practical and time-saving solution thanks to blockchain technology. Anything from a car to a house could be transferred with no intermediary needed.
Blockchain Makes Platforms Easier
You can actually develop a platform using blockchain. It means both easier creation and running of the platform.
A platform can be governed by a code deployed on an infrastructure that is blockchain based. This has already been used for new-age carpooling companies
Such platforms rely on blockchain to give out rewards to drivers. The rewards represent a share in the platform. The more they contribute, the more they benefit from the platform's success.
The Future of Blockchain Technology Companies
We could be on the verge of a huge shift in technology, similar to the start of the internet. It's predicted that the combination of blockchain and the sharing economy is the future.
Want to stay ahead of everything blockchain? Read our blog for more info, like how to make money on blockchain technology.