What sparks can be generated by blockchain + sharing economy

The networked credit framework established based on the significant advantages of blockchain technology such as decentralization, transparency and openness, and data non-tamperability can support the realization of many sharing economy scenarios such as shared finance, shared transportation, shared education, shared housing, and shared energy.

What sparks can be generated by blockchain + sharing economy

Since entering the Internet era, especially the Internet financial era, the business volume and scope of leasing business will expand at an unprecedented speed. People’s perception of the sharing economy is stuck in the stereotype of “burning money but not making money”. For a long time, it has been common to find that both traditional leasing and the sharing economy as defined in the context of “Internet+” have been used. In the future, with the gradual integration of China’s huge stock of fixed assets into the relatively liquid capital market and the maturity of various leasing means and related laws, the leasing business of large commodities will usher in a phase of blowout.

Because the sharing system or leasing system in the era of Internet finance has certain problems in the future, it may be a good idea to gradually transition from “Internet + leasing” to “blockchain + leasing” ecology, which will also be a visible trend. We may be able to use the advantages of blockchain to transform the Internet finance as a whole, and the sharing economy may be established in a new Internet financial ecology with the participation of blockchain technology in the future.

The networked credit framework established based on the significant advantages of blockchain technology, such as decentralization, transparency and openness, and data immutability, highly fits the innate advantages of the operating characteristics of the sharing economy and can support the realization of many sharing economy scenarios, such as shared finance, shared transportation, shared education, shared housing and shared energy.

Trust sharing to realize supply and demand matching

The greatness of blockchain technology lies in decentralization and de-trust, which can facilitate transactions through machines and algorithms in a completely unfamiliar network environment. Without the trust backing of a central institution, all participating network nodes can determine their identities and generate trust sharing through blockchain’s code and encryption technology, thus solving the mutual trust problem in the anonymous transaction process and greatly improving the speed and timeliness of data processing.

The transaction process in the traditional Internet involves three parties, namely the supplier, the demander and the intermediary, but the blockchain technology can completely abandon the “intermediary system” in the traditional Internet transaction and directly connect the supply and demand sides together to achieve the optimal matching of supply and demand. Blockchain technology is a very ideal solution to realize the sharing economy because of the frequent matching process between shared products and users in the sharing economy.

Data sharing, providing credit guarantee

Blockchain is essentially a distributed sharing system, with distributed sharing of ledgers, distributed storage of data, distributed recording of transactions, distributed collaboration of participants, and distributed maintenance of the system. No one can tamper with or destroy the ledger because no one can control all the network nodes at the same time. This technical advantage of “impartiality” makes blockchain technology have wide and deep application value in finance, insurance, intellectual property, charity and other fields. Specifically in the sharing economy, it can also provide a fundamental guarantee for the formation of a credit system with user experience as the core.

Smart Contracts, Providing Solutions

Smart contract is a contract that can be automatically executed in the network information platform and system when certain conditions are met. Smart contracts are one of the most favored business models in the development of blockchain technology. The smart contract system based on blockchain technology has the dual advantages of automatic execution and trustworthiness, which makes it possible to help realize various business scenarios involving online trust in the sharing economy, such as product reservation and payment for breach of contract, and makes the sharing economy more perfect and reliable. With the continuous improvement of blockchain technology, smart contracts are expected to become a standardized solution for specific application scenarios of the sharing economy in the future.

Permission Sharing, Bringing Revolutionary Changes

Based on the technical rules of blockchain, data requires most participants to agree to the validity of the data before it can be confirmed. Through the form of permission sharing, each participant acts as data provider, verifier and user at the same time to jointly maintain the security and validity of blockchain data. Therefore, no organization can have full control of the data. The biggest difference with the Internet era is that not only the sharing of data but also the sharing of data authority is realized, which is a revolutionary change brought by blockchain.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-sparks-can-be-generated-by-blockchain-sharing-economy/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-05-12 15:44
Next 2021-05-12 15:51

Related articles