Marketplaces are the backbone in any kind of economy. However, as things stand as of now – many of these marketplaces run in the traditional mode of centralized functioning. The advent of blockchain technology is set to change it for better. The future is about the Decentralised marketplaces and yes, you guessed it right – it is run by the concept called Blockchain technology.
Centralised Marketplace has an inherent drawback. They do not come with any sense of community or direct communication between the buyers and sellers. Decentralised Marketplace helps you achieve the direct contact between the two basic pillars of a transaction – the buyers and sellers. What else is it changing in terms of the future of the marketplaces? Here are the insights into the future of marketplaces.
What Is a Blockchain Marketplace?
Well, Blockchain introduces the concept of decentralization. There is no central platform of any nature. It works without the need for a middleman and is maintained by the users themselves.
The decentralized marketplace works on the mode of a distributed database network. If the marketplace uses a centralized platform, it will need constant maintenance and adherence to the security measures. This is bound to result in higher costs. The decentralized marketplace does away the need by making it self-secure as each of the blocks is encrypted and stays tamper-proof.
What Are The Changes That Blockchain Will Bring About in The Marketplace?
The traditional marketplace is set for a disruption if the concerned parties are willing to adapt to the new concept. Well, it may too early to make a prediction – but still, a few of the changes that may make it a great option can be summarised as –
- The payments are made directly between the buyer and seller. This ensures that the payments are done instantly. No third party involvement.
- The terms of sale and other conditions are set up and followed by the users. This will go along way in eliminating the monopoly enjoyed by a handful of players.
- There is no personal data required. Isn’t that the right way to ensure your privacy? Data security has been the huge concern at the current times and Blockchain ensures it.
The open source marketplace is not operated by no single individual. What makes it a force to reckon with is the peer to peer transactions involved. It is the users who control and manage their own data with no third party involvement.
How Does it Work?
The blockchain technology works in a simpler and efficient way. You work with a shared database of multiple entries. These encrypted entries are referred to as blocks and are managed by the code and framework provided by the third party provider like Soma.
Did we say, the third party? Well, the function of the third party software is only to provide the framework. They do not have a say in the cost of the product or service or in any other aspect of the transaction. In fact, even these service providers have no access to the data as it is encrypted and each node works in tandem with the other.
The marketplace usage is growing by leaps. The technology is quite new and we would expect more and more service providers opt for the blockchain technology and decentralized marketplace. The new marketplace based on blockchain is set to disrupt the existing mode of centralized marketplaces.
We may need to wait for a while until the technology takes off in the real sense of the world, but yes, it would indeed be a new future for the marketplaces.