Effects of Blockchain Technology in An Online Marketplace?

When the online retailing started off in the 90s, we all marvelled at how technology can change our day to day life. The things have changed a lot since then. The online marketplace has reached a stage that it has been influencing almost all our decisions in purchase. The online trend that began with retailing has now reached a stage wherein it is impacting other aspects of our lives as well. The traditional 9 to 5 job has now been replaced by freelance jobs and Work From Home counterparts. What effects can Blockchain technology have on these aspects?

Well, the online marketplace has ceased to be what it used to be in the beginning. Making its humble beginnings through the online retailing business, the concept of online marketplace has now reached the services industry as well. Firms like Fiverr, Upwork and TaskRabbit have been a few good examples of this makeover.

However, all these systems – whether Amazon, EBay or Fiverr, all of them come with a common platform – that they work in a centralised platform. The centralised platforms have a few loopholes that can limit the growth of these ventures. Decentralised ecosystem aided by Blockchain technology is what can change the scenario with a view to improved customer relationships and a better business model.

Loopholes In The Centralised Marketplace

The online marketplace as of now works on one central system that connects buyers and sellers. But, being centralised and non-transparent, it has some inherent bugs built within. These can indeed be done away with through the use of a decentralised ecosystem.

To begin with, centralised system lacks a proper transparency and social interactions. In fact, in the traditional model of conducting business, trust and interaction form part of the two biggest pillars of being successful. Moreover, the centralised system of commerce lets the marketplaces to change their fee structure on their own and this results in incurring losses to both buyers and sellers. The lack of transparency also leads to huge frauds in the traditional mode of online marketplaces.

Blockchain Technology Makes A Difference

Blockchain technology has been growing at an unprecedented pace over the past decade or so as web3 data continues to be developed. The success traces its roots to the high level of security and transparency involved in the decentralised mode which forms the basis of Blockchain technology.

Platform like Soma have been creating Blockchain based platforms wherein buyers and sellers can involve themselves in the buying and selling exercises through the P2P network. Users can connect directly with each other without the need to go through a centralised system. This effectively reduces the costs and in turn increases a better communication.

The decentralised model will let you – whether a buyer or a seller – to reap the benefits in the form of clarity, freedom of pricing, and an immediate redressal.

The Parting Thoughts

One of the greatest advantages of a Blockchain based decentralised marketplace would be the fair pricing norms. All the actual prices as decided by the sellers are visible and verifiable. The buyers can directly choose a seller based on their practical requirements and the financial limitations.

Decentralisation should be the concept that should sort out all the issues that have been plaguing the online marketplace with the current trend in traditional functioning.  We would look ahead for a future that would bring the better benefits of decentralised marketplaces and Blockchain technology for the betterment of the society as a whole.