The blockchain technology has been widely discussed in the society. However, not everyone is entirely sure on how it works and what it does.
Blockchain is a digital ledger in which transactions are made in cryptocurrencies and are recorded chronologically. As a result, it forms a decentralized database, which is managed autonomously. It can’t be controlled by any single entity and is completely secured.
In this respect we wander how can blockchain influence the sharing economy? The sharing economy appeared due to the recession in the market in 2008, which is based on the principles of a collaborative consumption and provides access to use the goods, not owning them. The combination of blockchain and the sharing economy may create a revolution that will transform the entire economy.
Within the sharing economy blockchain can:
make it cheaper to create and operate an online platforms
reduce the gap between the poor and the rich by distributing the profit and goods outside certain companies and individuals
speed up and simplifies transactions made in the existing economic model
Blockchain makes it possible to earn money by sharing not only physical but also virtual resources like storage capacity or personal data. It can lower costs and make the economy more transparent and equal.
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