Decentralized Blockchain-Based Electronic Marketplaces
There are four reasons I think decentralized marketplaces are inevitable:<p>1) Throughout history middlemen have suffered a common fate. They get squeezed out at every opportunity. We have a chance to cut out the rent-seeking middlemen, with revolutionary new business models that allow fees to go to ~zero.<p>2) Blockchain technology gives us a censorship resistance. Not only from governments that like to ban certain types of marketplaces, but also from centralized marketplaces which like to pick and choose who is welcome on their platforms. Just look at Uber and Airbnb as examples. They have been banned in cities all around the world &amp; have likewise banned certain individuals for life from ever using their marketplaces.<p>3) We can redistribute value to the people who actually contribute the most value in the network. Uber and Airbnb wouldn&#x27;t be here today if it wasn&#x27;t for the first 100 drivers&#x2F;hosts, but what did those drivers&#x2F;hosts get in exchange? Meanwhile, the early employees, investors and founders get filthy rich. New token economics give us a &quot;better than free&quot; business model that incentivizes people to use a platform that rewards early participants in the network.<p>4) Blockchain powered marketplaces are instantly global. This is a non-trivial advantage over anyone who attempts to create a centralized marketplace and has to wade through the local laws and banking regulations for each and every jurisdiction in the world where they wish to operate.