The blockchain offers a new networked business model, offering marketplaces new opportunities for user interactions, payments, and agreements. But what’s the next step? Where does blockchain technology lead marketplaces, with its cryptocurrency transactions, smart contracts, and decentralization? Let’s consider some pioneering blockchain marketplaces and how they’re experiencing the impact of the blockchain.
Decentralized hostingA blockchain-based marketplace is hosted by its users and supported by their computing power. This constant maintenance ensures that a marketplace is always accessible. Besides, rethinking how data hosting is organized can lead to more security, privacy, and transparency. Another result of removing the centralized host is the ability to avoid hosting costs altogether and set the lowest possible prices for producers, sellers, and consumers.
Blockchain marketplaces offer an immutable and time-stamped verification of every single transaction ever made. This approach makes transactions easily traceable and also prevents double charges, fraud, abuse, and any other type of manipulation.
Product transparencyTransparency is in the blockchain’s DNA. Blockchain marketplaces encourage transparency for transactions and agreements. In particular, such marketplaces inspire producers, and sellers to verify their businesses and prove the quality of their products and brands to increase trust. Moreover, blockchain marketplaces offer producers and sellers digital IDs to verify their products and businesses. These unique digital IDs can be used to track products within the supply chain, know where products are, and ensure that claims aren’t duplicated or deleted.
Smart contracts are the final piece of the puzzle in completely removing third parties and achieving a true peer-to-peer model. Smart contracts are claimed to be unbreakable and reliable, and allow parties to agree on literally anything. What smart contracts contribute to marketplaces is a toolkit for building a new generation of platforms where retailers, sellers, and consumers can make trusted transactions.