With the explosive growth of shared bikes and online car-hailing, our lives have been filled with unique products from the concept of sharing economy. The essence of a shared economy is the connection between a sharing party that owns idle items and a user who has a need to use them. Currently,sharing economy requires a third-party intermediary as a platform to connect the two sides. Blockchain technology can help realize the point-to-point connection between the sharing party and the user, which truly decentralizes sharing. In addition, blockchain can ensure the transparency and security of information, while the credibility of participants in sharing economy platforms can also be enhanced. “Green Mining” and other new models can lead to more users, thus building a better ecosystem.
Blockchain can digitize idle items, data and other resources and store it on the smart contract books, directly to the demand side.This is achieved through the exchange of information between two parties,signing of smart contracts, recording of contracts and transactions, the formation of a shared economic bottom structure, the realization of instant data exchange and trading. In addition, users can measure and trade the value of these resources by encrypting token mechanism or implementing a token incentive mechanism to attract more users and partners.
In a value exchange network based on blockchain technology,information is highly symmetrical. Data capturing, transmission, synchronization etc. can be easily updated and quickly released on blockchain. Even small transactions can be achieved. Smart contracts and tokens also help to ensure the implementation of a mutual agreement between two parties. With the example of a decentralized platform – BeeToken, participants can freely price their offerings without passively following the terms and conditions of Uber and other intermediaries. One of the great benefits of sharing economy’s underlying architecture is its openness. Once the underlying network is built, any product can be implemented with the same process logic so as to achieve “sharing”. From physical goods like cars and apartments to virtual items including electricity,computing power, flow and storage to data like real-time traffic conditions,intelligent weather, all of it can be shared in real time through blockchain to all participants and transactions can be completed through the blockchain value exchange network.
Trust and Security
Blockchain can collect and record user activities and behaviors to construct a full range of user credit files, which realizes the pattern of symbiosis between users and platforms. Users have the ownership of trust and they can authorize sharing of credit data, for which they will receive a corresponding return.
The high degree of information symmetry makes cooperation more secure and each user has the right to obtain the credit history of the opposite party. If a party defaults, it will be recorded on blockchain where records are open, transparent and cannot be modified. As a result, counter party risk is greatly reduced and trading behavior will also be more secure.
In addition to the main operating models of sharing economy, blockchain and the sharing economy can have more ways to interact, such as “Green mining”. For instance, GSENetwork (Blockchain sharing economy company) and Ofo (bicycle sharing company) have created a new model – “Cycling coins, Green mining”. It has been successfully piloted in Singapore and Japan. When an Ofo user rides a bike, the bike stores part of the kinetic energy produced for mining and would feedback some of the value created by the mining process to the user. New models of green mining can attract more users and induce more powerful growth of sharing economy to join the ecosystem. This could improve resource utilization, create value for users and achieve a win-win situation.
GSENetwork: DApp provides a strong and robust distributed architecture support for sharing economy models on the Internet
More and more companies are exploring the possibilities of blockchain and sharing economy. For example, Beetoken and SnagRide are attempting to become Airbnb and Uber in the blockchain industry respectively. Another company, KeepGo, is committed to sharing mobile and cellular data across carriers. Smart share is exploring opportunities for sharing Internet of Thing (IoTs). Share Ring provides a platform for aggregating all sharing activities.
The sharing economy in the past looked more of a “leasing economy”. But sharing economy with blockchain can achieve truly convenient and open sharing, bring economic returns to all sharing contributors, lower down costs and important, provide better quality services for users. As the Head of Operations at GSENetwork – James Zhang has said, “We are creating blockchain-based, transparent and secured network of sharing economy platforms.If we can do so successfully, then we will change the world.”