It does not matter if we are discussing file sharing through BitTorrent, money disruption through Bitcoin, or the coming of the internet itself. The fact remains that, innovations have been trickling their way up and not down.
A majority of the companies currently dominating the internet began in a small way and swiftly attained traction.
The question on everyone’s minds has to do with whether the new generation of sharing economy companies can operate while being supported by crypto-like tokens.
About The Sharing Economy
First and foremost, it is a prospectively large development. While it is being referred to as the collaborative economy, sometimes, it steadily centers around the opening of assets that are not being used.
Typically, it makes use of marketplaces. Thus, a specific provider provides products or services for rent to yet another customer. What this economy does is that it utilizes technology in a bid to bring people together.
An example is Uber.
It is a popular ride-sharing service that allows people who own vehicles to offer rides to consumers. And, these consumers are being charged based on the duration of the ride.
Yet another example is Airbnb. It makes use of the web to connect people who are interested in renting out their homes with visitors. Its valuation is roughly thirteen billion dollars.
The Sharing Economy And Crypto
Currently, a huge barrier for companies engaged in this sharing economy revolves around credit cards. As expected, this has made the sharing economy to suffer from diverse security problems.
Also, they do not give themselves to agile and flexible payment methods. However, with services such as Stripe, there has been some progress. On the one hand, Stripe is amazing for sharing economy functions in some selected countries.
On the other hand, it does not operate in some countries. For example, it does not back the Canadian businesses that send funds to other third-party accounts.
However, this is where Bitcoin crypto steps in. It will make all the payments simpler. This is because so many people will not willingly hand over their credit card info when carrying out sharing economy operations.
Also, Bitcoin has some micropayment protocols, which makes everything easier. Some companies are already taking huge glances at Bitcoin payments.
Furthermore, the two heavyweights of the sharing economy are Airbnb and Braintree. Additionally, Airbnb has given CoinBase the chance to give a speech at its headquarters.
While Braintree, the payment processor of PayPal, has decided to accept Bitcoin crypto. So many people may be wondering how a crypto-based sharing economy will strive.
Well, a significant promise of Bitcoin crypto has to do with its ability to function, in not just a decentralized, but also an autonomous way. Since it is decentralized, it is also transparent.
Visibility has always been an issue with the sharing economy. And, with Bitcoin in the picture, all that will be settled. The fact remains that Blockchain greatly excels in transparency.
Any address that gets to accrue a specific amount of social capital will be publicly seen.
Wrapping It Up
As the crypto ecosystem continues to evolve, there have been lots of talks about dApps. These are applications that are capable of issuing their very own token.
Note that, the idea of dApps based sharing Economy will be a great boost to the economy. As they say, Cryptocurrencies and their blockchain technology are here to make the world and diverse sectors better.
Author | Emily Forbes
An Entrepreneur, Mother & A passionate tech writer in the technology industry!