According to a recent report that was released in April by Lloyd’s of London, the economic value of the sharing economy will hit $33 billion by 2025. This is a huge increase from the $15 billion in 2014.
However, the report showed that most consumers in the US, Britain, and China were skeptical about the sharing economy. This review entailed gathering the views of 5,000 people. Various issues were identified for why most people were wary of this economy.
One of the major issues that people identified was personal safety. Besides that, the quality of service was an issue for them. Other issues that were identified were damage to their assets, theft, and a lack of safeguards in case issues arose.
The sharing economy is still young and it has issues that it will need to resolve. Because of new technology, some of the issues are being identified and solved. One of the best technologies for this economy is the blockchain technology. Those in the world of finance are using the technology that powers the bitcoin and other cryptocoins. Thus far, the results have only been positive.
ShareBlock And The Blockchain
The blockchain technology is a distributed ledger that allows data to be stored in blocks. ShareBlock, based in Seattle, wants to apply it to the sharing economy. The ShareBlock will be the first company that builds a blockchain platform for those in the sharing economy. Thus far, they have gotten various companies onboard. This includes YiRental, a company that lets you rent houses. It already has thousands of listing with over 100 thousand active users in North America.
The evolutionary nature of the blockchain makes it a perfect fit for those in the sharing economy. It has already proven to be a major success. Companies such as Airbnb and Uber have changed the lodging and transport industries.
One reason why ShareBlock will succeed is that the technology can sidestep middlemen and financial institutions that take a huge chunk of the profits. This will lower costs for consumers, and make it attractive for them to join the sharing economy. Price is always a huge incentive when trying to market a new product.
Besides that, the blockchain is transparent and irreversible. Thus, it will ensure the issue of fraud, which keeps some people away from the sharing economy, is resolved. Besides that, the blockchain has introduced the concept of smart contracts. These smart contracts can be used to resolve issues of disputes. Since they are self-executing, there is a guarantee of neutrality in every dispute.
At the heart of peer-to-peer sharing is decentralization. The blockchain is a perfect solution to eliminate centralization. Thus, create the ideal peer-to-peer sharing that is desired. With constant innovations in this technology and economy, ShareBlock is a welcome move. This platform, if it succeeds, could help to bring more people to the blockchain and the sharing economy. ShareBlock will allow companies to plug in an existing service or create one from scratch.