How can Distributed Ledger Technology improve peer-to-peer marketplace platforms?

In the past decade, the peer-to-peer (P2P) model has become extremely popular for consumers. We’ve seen the meteoric rise of tech giants like Uber, Airbnb and LendingClub, all which have reached unicorn status. P2P marketplaces for buying and selling of goods has been a successful model for much longer; the pioneer was eBay who its IPO in back in 1998. Overall, the (P2P) marketplace model is so successful due to its ability to create a ‘micromarket’ environment which can benefit both buyer and sellers. This is because sellers can determine their own price point positioning and margins to maximize their profitability. Similarly, Buyers benefit from the ability to choose between the vast number of individual sellers to pick the best product at the most affordable price. All of which ensures a stable, healthy and competitive ecosystem.

Having said this, the current models, while extremely successful are not perfect. Today consumers still experience many issues, such as:

  • Security,
  • Privacy,
  • High fees,
  • Trust, and fraud.

A decade after the anonymous Satoshi Nakamoto published his vision for Bitcoin: a peer-to-peer electronic cash system, we are still understanding and experimenting with how to best utilize the technology he gave to the world. Distributed Ledger Technology (DLT) can solve many of the current issues and create a safer, fair and equitable system; while also providing more opportunity for value creation. For the first time in human history, we have the ability to transact value with each other, without the need for a trusted third party; all we need is a connection to the internet. Don Tapscott explains the disruptive power of DLT, through the way it changes our virtual capabilities. He illustrates how for the past 40 years we have benefitted tremendously from the ‘internet of information’; it has radically changed the speed, flow, and access to data between individuals and organizations. However, overall it as done little to fundamentally change the way we conduct business. Now, DLT has the unique ability to create a new paradigm; the ‘internet of value’ in which we are able to transact value with one another with no intermediaries involved in the process. The future will only include more decentralization as we shift away from the top-down centralized economic models of the industrial age. Instead, we will build increasingly decentralized economic models in which participants have more access to value than ever before. Below are some of the reason why DLT can be the facilitator of positive change for the peer-to-peer alternative economy.

Smart Contracts

Lower fees and lower costs

Providing more decentralization and value creation

Increasing levels of trust

Improved security

Instant Transactions/Settlement

Cartam

Cartam was conceived with the hope of providing a marketplace platform which can solve many of the current issues in the sharing economy by leveraging Distributed Ledger Technology. Our aim is to also provide early adopters of digital assets, with the necessary infrastructure to actually be able to use their cryptocurrencies as they were intended; for the transfer of value. We hope that you will join us on our journey to create an improved system for trade in the growing sharing economy. We are expected to launch in Q4 2019, but in the meantime come join our growing community on Telegram!

Written by: Hugh Flood

If you are eager to learn more about the project and us please visit our website and our social medias:

https://magnanumeris.com

https://www.facebook.com/CartamOfficial

https://www.linkedin.com/company/28594185

https://twitter.com/CartamOfficial

https://medium.com/@magnanumeris

Magna Numeris and Cartam are registered trademarks