Readers know by now that InvestingHaven is a huge fan of Blockchain technology. Blockchain has many applications. One of way to leverage the power of Blockchain is ingboost local commerce and peer-to-peer interactions.
According to this article on the Huffingtonpost, one of the latest blockchain trends is the creation of decentralized applications, also known as “dapps.” In line with the philosophy of the Blockchain dapps don’t require any “middlemen”. Dapps offer a peer2peer environment: customers and businesses work together with trust and transparency induced by the platform.
Dapps: The Future Of Peer2Peer Marketplaces?
An increasing number of marketplaces leverage the value of the blockchain through dapps. One such case is 5miles, a peer2peer marketplace, which is seeking growth through their new token called CyberMiles.
5miles, a leading consumer-to-consumer marketplace in the U.S., is paying close attention to blockchain technology and decentralized applications. 5miles plans to empower the decentralization of the online marketplace through CyberMiles, a foundational blockchain being developed by 5miles’ blockchain technology lab, 5xlab.
We quote Huffingtonpost on CyberMiles:
“Our vision for the future is a public network that provides secure and trusted business services for its members, by its members,” said Dr. Michael Yuan, CyberMiles’ chief scientist. “All small businesses should be able to use the services provided by this network to support what we call ‘smart business contracts’ and highly-efficient transactions.”
5miles hopes to migrate its sellers and buyers gradually and seamlessly onto a fully-decentralized network, in so doing becoming a pioneer in decentralized online marketplaces. The company believes that blockchain can provide natural solutions to common problems associated with peer2peer marketplaces.
“5miles has seen that economic incentives, when transparent and properly implemented, motivate people to be active and good participants in a community,” said Dr. Lucas Lu, 5miles’ founder and C.E.O. “If those incentives can be earned throughout the various processes that run a marketplace and online community, then many marketplace functions that are currently centralized can be done in a decentralized manner, powered by the communities’ own members. This strengthens the participation and creativity of its marketplace participants, while at the same time allowing the network to become even more dynamic and scalable.”
Benefits of Decentralized apps like CyberMiles
There are 3 specific reasons why peer2peer marketplaces will get revolutionized by the Blockchain technology.
- A Marketplace That Never Shuts Down: Decentralized networks are characterized by the high availability of their network. They are resistant to data center failures as they operate on the blockchain. Since most P2P marketplaces rely on centralized servers, a data center failure can cause the marketplace to go down entirely. But in the CyberMiles blockchain network, computing power and business services all can be provided by members of the community.
- A Secure Marketplace Based on Trust: Decentralized networks run on the blockchain. This means that transactions are transparent and can be verified by members of the network. In addition, records become immutable since it is difficult to change data without the peers on the network detecting tampering. Unlike credit card or other bank-oriented transactions, blockchain transactions are added cryptographically onto the ledger and are irreversible. Though blockchain is public, it completely discourages fraudulence in the infrastructure.
- A Marketplace Built for Community: Many consumers today have lost their sense of community. Most consumers look towards big-box retailers like Walmart and even Amazon to have groceries delivered directly to their door. Fortunately, a decentralized ecosystem offers the possibility that all participants can share and essentially govern their own marketplace communities. Productive, active participation also is recognized and rewarded, recreating basic values in our day and age. Community-based conflict resolution also will be put in place, meaning customer service reps won’t be needed to deal with disputes between buyers and sellers. (In this case, a pool of community arbiters will work with the conflicting parties to reach a resolution.) Everything is basically community-driven in a decentralized marketplace.
Even if the concept of decentralized apps is very young we see several revolutionary companies appreciating the value of a decentralized network. As 5miles has discovered, decentralization can help solve many of the problems associated with P2P marketplaces.
A decentralized future could happen sooner rather than later. As blockchain continues to gain traction, companies everywhere are going to start seeing the value that decentralized networks can provide. From trust and security, to efficiency and community, decentralized, localized commerce could usher in a brighter, better future.
Want to know more about the token of CyberMiles. You can find out now, and still have 3 weeks to participate.
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