Wednesday, February 21, 2018

Blockchain in the Sharing Economy

Sharing Economy
Sharing Economy

One thing we have noticed is that large organizations rely on information provided by users to generate value within their own platform. The problem with this platform is that the value produced by the crowd is not equally distributed among those who have contributed. Most of the profits are captured by the large intermediaries who operate the block. Uber and Airbnb could be obviated in a world where we store people’s online identities on the blockchain. Uber has disrupted the entire transportation industry. Some governments, however, have been quick to limit its reach in order to protect existing taxi companies. La`Zooz ( is an open-source and decentralized collaborative transportation system. More importantly, La`Zooz is a blockchain-based ride-sharing solution that rewards its users, developers, and drivers with tokens called zooz. Unlike Uber, La`Zooz has no central authority and cannot be blocked or shut down by governments. Your identity (as anonymous as you want it to be) could be linked to reviews in the “sharing economy” on the marketplace. People can check out your review as a trusted individual by checking your ID number. It would actually promote good behavior because if you get a bad reputation you cannot delete accounts and re-register. As we have mentioned, the blockchain can’t be tampered with or duplicated. Your identity and what you choose to expose can be valuable. Onename is a New York–based startup that has created an ID system using the Bitcoin blockchain. Its first service allows users to create blockchain IDs, which will soon be used to log in to websites without the need for a password.

P2P lodging sites have already begun to transform the lodging industry by making a public market in private housing. The blockchain would enable a secure, tamper-proof system for managing digital credentials and reputation; it could accelerate the adoption of P2P lodging.

Instead of central power providers, a distributed network built on blockchain technology lets people generate their own electricity to sell on the network, using their blockchain’s identity to perform the transaction. With solar and high-capacity battery technology, individuals can potentially act as distributed power providers. Blockchain could be used to facilitate secure transactions of power between individuals on a distributed network who do not have an existing relationship. The fact that all transactions are verified by a consensus network means you are protected from customers who claim the transaction did not happen. The blockchain records are a more reliable truth than the central database of the existing providers. The current applications are Sun Exchange, TransActive Grid, and Grid Singularity.

Source: Blockchain: A Practical Guide to Developing Business, Law, and Technology Solutions 1st Edition by Joseph J. Bambara

1 comment:

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