At present, the centralized market platform can provide the service and reliability level expected by mainstream users, but it may lack transparency, charge high fees and implement rules that users may disagree with. This is what decentralized markets can improve. Next, we will discuss what they are, how they work, and give some examples of decentralized markets at work.
What is a decentralized market?
Decentralized market is everything in blockchain. They allow people to interact and trade on a global, unauthorized and self-executing platform. Houses, cars and clothes can be bought and sold without trusting middlemen. Focusing on decentralized market, a decentralized market matches buyers and sellers of goods and services. Most important functions, such as executing transactions and releasing funds, are controlled by smart contracts or programs, not by one person.
This means that the buyer and the seller agree to the terms, and when the terms are completed, the transaction is automatically executed by the program. This makes decentralized markets powerless, resistant to censorship and distrustful. Because they tend to use cryptocurrency for payment, they also have all the benefits of the global 24/7 payment system.
The path of development
Some existing markets on the Internet are Craigslist and eBay, which were launched in 1995.
In 2011, the Silk Road was launched. Although it is not a truly decentralized market, it is used by many users in this market bitcoin Pay.
OpenBazaar is one of the most famous decentralized markets with the longest running time. it was launched in Toronto hackathon in April 2014, and is called "dark market". Today's open bazar is the fork of the dark market.
Syscoin, a blockchain network focusing on decentralized market applications, was also launched in April 2014.
The difference between centralized market and decentralized market
The biggest difference between centralized market and decentralized market lies in the need for middlemen or middlemen. Without middlemen, expenses are not necessary and sometimes unnecessary. Market rules are also completely transparent and cannot be changed without user acceptance. When services such as comment, reputation and dispute resolution are added, decentralized market will gain many benefits of traditional market with higher transparency and less cost.
Market blockchain
Syscoin is a blockchain protocol or network with built-in platform for e-commerce and decentralized market. Users can use the application-specific blockchain of Syscoin, which has high transaction rate and high security. In addition, the Syscoin blockchain can interoperate or be compatible with other blockchains using Syscoin bridge.
Market application
OpenBazaar is not its own blockchain, but acts as a peer-to-peer application or directly connects with applications that want to trade. It has many advantages of blockchain, for example, it doesn't have to rely on centralized power, middlemen or central databases, but because it is only for trading and e-commerce, it doesn't need miners or complex consensus algorithms.
OpenBazaar also enjoys the benefit of not charging any fees or restrictions on use. Anyone can download the software and start trading. The plan uses a variety of cryptocurrencies for payment, such as Bitcoin, Bitcoin Cash, Litecoin and Zcash.
Market platform
Another way for decentralized markets to exist is through a platform or protocol in which developers create tools that allow others to create their own peer-to-peer markets. By creating standard and intelligent contract systems, these platforms allow almost anyone to start their own decentralized market. These two platforms also allow users to manage lists, hosting, comments, ratings, buyers and sellers in an easy-to-use way.
Market token
Some decentralized markets have their own tokens to help promote market functions. For example, Syscoin users can create their own tokens on Syscoin platform (SPT) for governance decisions. The token also rewards users, developers and market operators. It also has its own ERC20 token ORI. ORI is used for dispute resolution and decentralized payment system, and can reduce transaction costs.
What can you do for the decentralized market?
Most decentralized markets allow you to buy and sell almost anything and pay in cryptocurrency. Decentralized market can save you platform costs, and you can access it anytime and anywhere without providing personal information or trusting a central provider.
The future is worth looking forward to
Because the scale, scale and use scale of decentralized market are still far from the scale, scale and use of its centralized market, the challenge for almost all decentralized markets is to let more buyers and sellers on their platforms. At that time, we believed that if we had enough time, its development would be as prosperous as other encryption industries.
The more information such as this is shared publically, the more people become aware of the benefits of decentralised markets.
This got me curious about OpenBazaar. I shall read some more about this.
Thanks
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit