True sharing economy enabled by blockchain applications
Immutability, transparency, and trust. Blockchain applications encompass high impact to a true sharing economy.
All activities in the economy come from the law of supply and demand. Technology development offers an ever greater opportunity to connect people around the world. As a distributed database, enterprise blockchain with diverse blockchain applications is gradually bringing a more efficient sharing economy, helping to make the most of the excess resources in society.
The sharing economy is on the verge of collapse due to disguise and ineffective management.
“Business model” is how businesses bring value to their customers, drive their customers to pay for the benefit and convert those payments into profits. In the sharing economy model, people take advantage of the idle resources available in society. Instead of buying and owning an exclusive product, they are more interested in renting and sharing them.
This sharing activity takes place on peer-to-peer networks, which means that all components of the network have the same authority and do transact with or without an intermediary.
The larger the sharing scale, the more cost-effective the parties involved in the sharing network get, especially for B2B businesses. A lot of giants are thriving through new, innovative approaches to identify and deliver their services.
The original goal of a sharing economy model is to optimize the use and to allocate idle resources and bring convenience to the participants with low cost.
However, the sharing economy is currently vulnerable, easy to fail after a short period. Start-up owners are too eager to take advantage of the new trend, only looking to attract investment capital and expand market share but have no mechanism to control assets and monitor the actual needs and behaviours of users.
Technology unicorn startups are no exception. Take Airbnb — a technology platform that helps connect lenders, share seats with people in need like tourists, or Uber — a platform that connects free vehicle owners with those who want to hitchhike as examples.
The disguise happened when these enterprises abused their huge capital to do price subsidies to redeem themselves from an unfair competitive advantage and ignore the actual value of the sharing economy model. This pushed their businesses on the verge of bankruptcy. As a result, the accumulated losses of Airbnb and Uber are respectively more than 700 million USD and 4.5 billion USD in many markets and a miserable future.
Blockchain technology is the new direction for a more sustainable future of the sharing economy.
Blockchain is the future of a true sharing economy.
The emergence of the Internet and web2.0 created the future of a promising sharing economy. However, the development of many technology giants led to centralized control and dominance that made the idea to change its original purpose over the years.
Blockchain, the next multi-purpose technology after the internet, allows resources to be connected and distributed more smoothly based on automated algorithms.
This automated distribution mechanism helps to reduce the intervention of personal goals, focus on large organizations, and reduce social division between the rich and poor. Opportunities and values are distributed with the fair in a just manner.
The blockchain technology itself works by utilizing the free-space of data storage devices of network members. These data are stored linearly and immutably over time, which creates high quality and transparent data sources. This means that the values generated will display more faithful to reality.
Besides, blockchain reduces dependency or eliminates intermediaries. Members of the network will be the ones who set the price, terms and conditions of transactions. The platform will perform under an online auction mechanism to maximize the expectations of both property owners and renters.
akaChain develops a sharing economy with blockchain by building a digital ID
In the sharing economy, users will have to quickly consider and decide to use the resources of an unknown party. So trust is what we need to motivate them quickly to choose those resources. Blockchain can implement this thanks to the ability to verify the identity and accurately distribute the responsibilities of the parties involved.
Blockchain-based digital ID, combined with other emerging technologies like AI or IoTs, provides the ability to identify and then record all information into the database transparently and accurately.
Identifying identity with Digital ID helps businesses eliminate those who fake customers while ensuring this identity information is confidential.
Currently, many enterprises and governments show their interest and even successfully apply blockchain-based digital ID applications, such as SingPass of Singapore which allows users to transact with over 60 government agencies online easily and securely.
In our opinion, the sharing economy has the potential to bring enormous benefits to many economic components. However, businesses still need to focus on delivering real value and efficiency to gain sustainable development. If implemented correctly, blockchain technology can become a driving force to achieve this effect.
akaChain is backed by FPT Software, a globally leading technology, and IT services provider. It is an end-to-end, permissioned, multi-chain network based on the Hyperledger Fabric. Since Establishment in September 2018, akaChain’s product has assisted many enterprises, from SMEs to Fortune 500 firms, to transform with distributed ledger technology. The company provides a broad range of permissioned blockchain-based products and services in multiple sectors, including retail, supply chain, banking and finance, insurance, shopping mall management, etc. to transform with its distributed ledger technology. For more information, please visit https://blog.akachain.io/
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