What is a Decentralized Marketplace?
– Decentralized marketplaces operate on trustless networks without middlemen, utilizing smart contracts for transactions.
– They allow global, permission-less, and self-executing interactions and transactions.
– Buyers and sellers agree to terms, and when fulfilled, transactions are automatically executed by a program.
– Decentralized marketplaces are permission-less, resistant to censorship, and trustless.
– They offer the benefits of a global 24/7 payment system through the use of cryptocurrency.
A Brief History
– Early marketplaces on the internet include Craigslist and eBay, launched in 1995.
– Silk Road, launched in 2011, allowed users to pay with Bitcoin, although not truly decentralized.
– OpenBazaar, launched in 2014, is one of the longest-running decentralized marketplaces.
– Syscoin, also launched in 2014, focuses on decentralized marketplace applications.
What’s so special about it?
– Decentralized marketplaces eliminate the need for middlemen, reducing or eliminating fees.
– Rules are transparent and cannot be changed without user acceptance.
– Added services like reviews, reputations, and dispute resolution provide transparency and fewer fees.
– Various types and setups of decentralized marketplaces exist.
Marketplace Blockchains
– Syscoin offers a blockchain protocol for e-commerce and decentralized marketplaces.
– Syscoin’s blockchain is interoperable with other blockchains using the Syscoin Bridge.
Marketplace Applications
– OpenBazaar is a peer-to-peer application for trading and e-commerce without reliance on central authority or middlemen.
– No fees or restrictions on use, and multiple cryptocurrencies can be used for payments.
Marketplace Platforms
– Origin Protocol and Origami Network allow developers to create their own decentralized marketplaces using Ethereum.
– These platforms provide tools for managing listings, escrow, reviews, and ratings.
Marketplace Tokens
– Some decentralized marketplaces have their own tokens for facilitating marketplace functions.
– Syscoin has Syscoin Platform Tokens (SPT), while Origin Protocol has Origin Tokens (ORI).
What can you do with Decentralized Marketplaces?
– Buy and sell nearly anything and pay with cryptocurrencies.
– Save on platform fees and access marketplaces without providing personal information or trusting a central provider.
The Future
– The challenge for decentralized marketplaces is to attract more buyers and sellers for greater adoption.