The Rise Of Decentralized Marketplaces
Why We Stand For An Unbridled Marketplace
In our corporate-controlled global economy where the 80–20 rule sometimes is actually 98 to 2, and the lower percentage of market participants control and/or regulate the larger percentage of the actual market share, decentralized e-commerce marketplaces offer a totally different approach. They feature a number of unique advantages for both B2B and B2C spheres, and, what’s more important, for all the participants involved, according to their respective part, not just for some select few who happened to get behind the wheel at a good place and time.
There are several reasons why decentralized marketplaces are on the rise now. One major difference from regular marketplaces is trustlessness. It doesn’t mean that a blockchain-based marketplace eliminates trust. It means that transactions are much less dependent on the amount of trust required from any participant. Trust is distributed — also decentralized. For instance, service and goods marketplaces, such as CanYa or OpenBazaar use trustless hedged escrows to protect their users’ transactions from crypto-associated market volatility and currency fluctuations. A comprehensive system of rate and review each of them employs also allows more diligent participants to get better deals or more workload.
This leads to another important issue decentralized marketplaces tackle successfully, the very 80 to 20 rule. In decentralized business models, those who contribute the most value to the network, get a better share in the distributed value. A lot of decentralized marketplaces use complex referral systems, and those players who come first and have longer referral chains will get more profit. Take AirBnB or Booking.com or any couch-surfing service. Are their first hosts or more loyal hosts rewarded better than newcomers? Not really, even though they’ve stayed with the system for a long time and actually helped making it. But a decentralized travel marketplace, like, for example, Cool-Cousin’s reward system is transparent and very supportive of the best contributors. Where things depend largely on high-quality user generated content, which is Cool Cousin’s case, it is usually easy to find loopholes to exploit, for instance, making sure said content keeps coming and people are actually leaving genuine traveling recommendations instead of using the platform for marketing and promoting their own local touristy businesses — we all know that most of the times, a good portion of the positive reviews on travel sides is done by the hosts. But by going decentralized this could be prevented. Blockchain identity verification and anonymity prevent bad actors from misusing the platform.
Scalability is a factor so many businesses strive for now and a factor decentralized marketplaces offer with great ease. Many centralized marketplaces require a certain threshold to be met in order to participate in trade, but it is not a case with blockchain-based market platforms. Gaming industry is a good example. There are quite a few gamer-oriented projects sprouting up right now, such as Wemark and DMarket, where gamers from all corners of the world and all game inclinations can trade their in-game assets. You can become a participant even if all you have is a piece of aetherial dust from TESO and you’d like to sell it and buy a perk for WoW instead. Even In-game you’d have to, most of the times, enter a trading guild to sell something. Decentralized marketplaces eliminate that. You and your dust are as much a participant of the market and trade process as Bethesda itself would be, should it enter the platform.
And one of the most important advantages decentralized marketplaces offer is that they are not controlled by a single entity. This means, importantly, no single failure point but also that there’s no single policing power. This could be very relevant for HR-related industry, freelancing and jobs. According to statistics, almost some 35% of employed Americans freelance in some capacity. Centralized platforms like Upwork have very high fees all the participants are forced to pay in order to get access to either executor database of posted orders. And the fees are always subject to change, depending on the company’s board decisions. Blockchain doesn’t have that. CanYa, a project with similar features, Ethearnal, a peer-to-peer freelancer platform aren’t policed from a single vantage point. The prices are much more competitive, the access is instantly global, and more so, with blockchain’s transparency and anonymity, participants are scam-protected.
All in all, decentralizing and sharing economy offers a fair-play approach to trading and it is no wonder we see more and more of them appearing nowadays.
Market.space will offer an unbridled marketplace where professional hosts put forward their offers and customers choose the best suitable ones. Our web application will sort out the offers grouping them by lowest price, level of security and upload/download speed. The clients will be able to see the full range of contractors with the rate assigned by the system and other details). We stand for a commission-free model as we’d love to make it as affordable as possible.
We also leave the rules of the game to the system participants. For example, Market.space doesn’t call for minimum and maximum price threshold for contractors. The newcomers may set a fee close to zero (or zero if they want to) and thus earn a rate. More details on how our request and offer system works can be found in section 4 of the White Paper.
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