CRUZEO Protocol FAQs
Welcome! Here lies the list of CRUZEO’s FAQs. This is a living blog post, updated on a weekly basis.
What is the CRUZEO Protocol?
CRUZEO is a platform which lets entrepreneurs of all technical backgrounds build decentralized marketplaces; in just a few clicks, no code required.
Users are able to create cheaper and fairer marketplaces without intermediaries, powered by distributed ledger technology.
What is your purpose?
We exist to enable the next generation of fairer online marketplaces, which rival and surpass the likes of AirBnb and Uber.
We’re here to enable a digital marketplace economy, where users have control over their data, digital identities, privacy, and value.
Who’s it for?
We provide both non-technical entrepreneurs and developers with the tools required to build high-quality decentralized marketplaces.
What exactly do you offer?
For non-technical entrepreneurs, we have a “drag-and-drop” web-app which makes building a decentralized marketplace as easy as building a website with Weebly.
For developers, we have libraries and an open-API which provides access to the underlying core functionality required to build a blockchain-powered marketplace.
What is a decentralized marketplace?
The sharing economy as we know it today consists of companies such as AirBnB and Uber. The idea of this economy is that users work together to share resources, services, and goods.
But the reality is that centralized marketplaces are governed by the company owning them. When someone books a room with AirBnB they communicate more with the company than the person renting a space, these companies are called intermediaries. This centralized marketplace model is full of inefficiencies.
A decentralized version would be if one were to find a room in the city they want to go to and directly book it from the host, and the whole fee for the room goes to the host. No middle-man, no unjust commission to feed that man.
What are the benefits of using a decentralized marketplace?
Decentralized marketplaces have no intermediaries. Intermediaries have shown to perform unjust discrimination, monopolistic practices, labor abuses, and inequitable value extraction.
Decentralized marketplaces are profoundly cheaper and fairer. Thus, providers benefit from increased earnings, while consumers enjoy cheaper goods/services.
What are the incentives for someone to build a decentralized marketplace?
There are currently misaligned incentives between marketplace builders and consumers. Network participants naturally benefit the most from decentralized marketplaces, so why aren’t they the one's building marketplaces? And how can we incentive them to do so?
We aim to address this in 2 ways:
1. Token Incentives: Users who wish to build a marketplace have the freedom to deploy their own marketplace token. As usage increases in their marketplace, their respective token will appreciate in value. This acts as a direct financial incentive to build a high-quality decentralized marketplace.
2. Removal of Barriers: The higher the barriers to building a dMarketplace, the more incentives are required to attract builders. This is why we’ve made removing the financial and technical barriers to building a marketplace one of our core missions.
What types of marketplaces will be powered by CRUZEO?
We’re seeing a market-shift towards “managed marketplaces”, such as Honor, which require higher levels of established trust. However, the unit economics of establishing such trust with the traditional centralized marketplace model is struggling to prove sustainable.
We believe that complex and regulated services-marketplaces, like Honor, can benefit the most from the decentralized marketplace model. We’re excited to see new marketplace models which were previously unviable, being built on CRUZEO.