Internet giants, which will soon be squeezed out of the market by the blockchain
The Internet occupies one of the most important places in the life of every modern person, and its suppliers have incredible power. They deliver everything that consumers like so much – movies, games, music, and stuff. However, blockchain enthusiasts are confident that only decentralization will become a magic pill that brings true happiness to people.
If the Internet giants that exist now will change the principle of centralization, we will not know the network. It will turn into an entirely different environment, such as the meme culture that has become a kind of commonplace, which would seem strange and even extraterrestrial in 1999.
The site and its database are a single entity, but decentralization does not provide for belonging to a specific creator – everything will be controlled by the community, which in turn can create a huge variety of different business models based on available data.
Let’s try to imagine what would happen if the Internet were decentralized from the moment of its foundation on the example of social. networks. If you want to chat in 2003, you would have registered a personal account on Friendster, then, when MySpace appeared, it was not necessary to do the same thing again, because it would be enough to give the site access to your Friendster profile. Further, the same procedure could be performed with Facebook and many similar services.
Of course, each resource would create new or at least modify the existing functionality available to its users, but thanks to the principle described above, it would not be necessary to lose contact with friends from older websites and the content that was added to them starting profile from scratch.
Sounds practical, does not it? But will there be enough of such opportunities to drive out those giants that have been at the helm since the dotcoms were popular?
Thousands of enthusiasts, who rely on attracting the audience and investors through the ICO, enter the game because it is not only a mechanism for raising funds to create something innovative. The tokens of a certain company launched on the stock exchange have the potential to become a useful tool through which customers can interact with new distributed networks, creating a unique infrastructure for the “Web 3.0”.
We will acquaint you with three main vertically integrated spheres, where start-ups with the use of blockchain can supplant the standard business models.
When this resource just appeared there were dozens of sites reserved for a certain type of goods – for example, video games, where sellers and buyers got the opportunity to communicate directly with each other.
It was assumed that specialized resources more than cover all the needs of users, but eBay offered them so many different products that the head was spinning!
It turned out that video games can be sold in the same place where they sell parts for motorcycles, because the buyer may well be interested in both. Not to mention the fact that remembering 5 different websites for each of the products and ordering them separately will be much longer than making all the purchases on one website.
In theory, all sellers could easily promote their products on special sites and eBay at the same time, but this would have to avoid double selling the same product. By the way, eBay itself does not facilitate the solution of this dilemma.
And if consumers had a choice? Imagine that information about all video games was saved in a single database, on the basis of which dozens and even hundreds of different resources were created? Thus, a certain announcement could be placed on all sites connected to the database, simultaneously. And if a particular product was sold on one of them, it was automatically removed from the list for sale in all stores.
According to Ji Zhuang, general director of the Listia site, whose team is actively involved in creating a decentralized version of eBay, Ink Protocol is quite feasible!
“The protocol developed by us decentralizes the seller’s and buyer’s trade relations, taking away power from monopoly companies, which will be much more profitable for real participants in the transactions,” Zhuang said.
He also stressed that in the case of decentralized markets, the seller has the opportunity to use any platform, and his reputation, earned on one of those where he already traded simply will be transferred.
To finance their own development, Listia began selling coins on January 29. The company sincerely hopes to attract $ 15 million.
The owners of coins will also be able to participate in the trade on the Listia site itself, where at the moment it is possible to get special loans for performing various advertising offers. In addition, after the launch of the company’s blockchain-project, these loans are converted into coins.
A similar task was set by the OpenBazaar project from OB1. It is one of the most popular decentralized markets. However, the main difference between the idea of this company and Listia is that OB1ise going to create an ideal ecosystem for making confidential transactions, and while only bitcoin will be used for this. Note that this may soon change, as CEO Bryan Hoffman said that because of the congestion of the Bitcoin network, the company wants to develop its own coins.
Your era is coming to an end, YouTube
Perhaps, at the current moment, there is no video hosting that could compete with this colossus. Service offers many advantages for content-makers. But lately the number of complaints exceeds the share of positive responses and more authors are leaving for other sites, including decentralized ones.
What does Youtube do? Reduces the income of channel owners and automatically removes ads from those videos that, in the opinion of the mechanism, violate the policy of the service. Not the most advantageous tactic on the part of the administration.
Newly-minted startups are sure that through decentralization, content creators can be provided with the functionality to interact with viewers directly by using cryptocurrency. At the same time, the users themselves will be able to determine how to monetize their attention by looking through advertising, sharing their information or giving part of the power of their device for better functioning of the platform.
CEO Flixxo, Adrian Harelik believes that at one time BitTorrent has already managed to prove to all skeptics that it is quite possible to share excellent content in a decentralized and more reliable way.
The BitTorrent protocol created in 2001 allows one user to download a copy of the file from the device of another person, without participating in this “scheme” of the central server. Harelik said that their team will be able to bring the torrents to a new level, giving users a fee in a cryptocurrency equivalent for storing data on their devices.
Adrian claims that by creating a network of this type, they will be able to distribute any type of content in a peer-to-peer manner using various methods of monetization.
Recently, more and more often you can find information about how the blockchain can take away the lion’s share of popularity with streaming services like Netflix. At each level of the online video playback structure, many large players are conveniently located. This situation in the market was described in detail by the creators of Paratii, a startup for video decentralization, noting that we all witnessed the emergence of a new kind of pyramid, when a single technology leads not to the disappearance of another, but a whole set of protocols with dozens of compatible “layers”.
Farewell, Apple Music
Today, people spend no less than time to create a playlist for any situation. Playlist for trips, for training in the gym and dozens of others. But music is important not only for them but for those companies that own resources, where they often buy music.
This is due to the fact that in services like Apple Music people are ready to invest their knowledge and a ton of time, creating playlists for every taste, noting your favorite artists and their compositions. Of course, this information is actively used by marketers to complicate the transition to other services in the future.
Jesse Grushak, co-founder of the musical start-up Consensys Ujo, affirms that people, even in music, have long become hostages to systems controlled by the giants of the corporate world.
It is worth noting that most startup creators are of the same opinion. That is why the blockchain companies are beginning to transform the “musical” aspects. Viberate, for example, is trying to replace music agents using smart contracts – a set of specific rules introduced into the blockchain system through programming, whose execution is guaranteed by the network participants.
You probably noticed that many artists also pay attention to the advantages of blockchain and cryptocurrency. In November, singer Bjork said that her album can be purchased for 4 types of digital currencies, and one of the former employees of Universal Music Group in October last year managed to attract 1.2 million to develop a music rights monitoring system called Blokur, created on the basis of Ethereum.
And although most of the founders of music startups do not plan to conduct an ICO yet, Grushak acknowledged that Consensys Ujo may well have its own tokens.
Now the company is focused on the principle of “mobile fan-badge” – a tool that looks like a coin connecting the owner and his data. Thanks to this concept, you can import musical tastes of every single person (performers, list of songs, music genres) from one service to another. This will improve the interaction between performers and their fans, as they can directly offer them their new songs.
The portal will also significantly facilitate the process of monitoring and sharing rights. Each musician who takes part in the performance of a certain composition will receive a reward that depends solely on his contribution. This idea is technically feasible but requires a huge number of intermediaries who receive a percentage, which, in turn, deprives the idea of any meaning.
According to Grushak, the blockchain will allow us to return to the old system in which people acquire, enjoy and enjoy their favorite compositions, regardless of the platform.