Table of Contents:
- 1. Is the future connected to the P2P economical system? The role of a blockchain
- 2. Are cryptocurrencies the future of the economy, or is this the economy of the future?
- 3. How does P2P system of economy look like?
- 4. P2P Network and Blockchain technology – the example of excellent harmony
- 5. An innovative method for obtaining electricity
- 5. Russian Kickstarter
- 6. Transportation services and self-delivery
- 7. The future is now
Is the future connected to the P2P economical system? The role of a blockchain
Many years ago Bitcoin and other alternative cryptocurrencies were regarded as a toy for computer geeks. However, with time, more and more people believed that cryptocurrencies are not just a simple device to have fun with, but also a very serious device that, in many cases, can multiply your funds even by a hundred. It is true that the last two years were quite essential for the development of cryptocurrency market. And even if many people realize how crucial the access to digital currency really is, there are still many people that do not know a single thing about that financial area. If not that, the only thing they know is related to the rumours and very old saying that it is just a financial bubble, nothing more. However, what is the truth?
Are cryptocurrencies the future of the economy, or is this the economy of the future?
First of all it is crucial for us to understand that even if some armchair analysts claim that there is a need for changes because of very quickly developing system, we should always remember about the fact that the economy is not a brand new idea that emerged in recent years. Truth to be told, the economy is as old as a man himself and in many situations it is as complex as our organisms.
Of course there are people that will say that all the things related to the house management is economy. Yet, nowadays the idea of economy is changing because of its multifaceted nature. In other words, it all depends on the conditions and the environment when it comes to defining economy. The most popular subtypes of economy are, for example, traditional, mixed, transitional, capitalist or shadow. It is worth to note that even though there are many different types and subtypes of economy, they usually complement each other, creating something similar to the puzzle.
The best way to compare the new economy is by looking at it as a modular device. It is because in many cases the only thing we need to do is to update the existing modules with brand new one rather than creating something from the scratch. Once the fresh module is implemented, the rest will work appropriately. If we take a closer look at the global finance system, we can notice that it consists of many of such modules that, on the one hand works separately, but on the other hand they always interact with each other. It means that if there are to be any updates of the economy, they will appear on the market without any problems almost immediately, without worrying about compatibility issues of any sort.
How does P2P system of economy look like?
At this time we can say that there are no local restrictions when it comes to the development of the economy. Noteworthy is the fact that modern economics cannot progress very far without the access to artificial aid and machine intelligence. Similarly, a man can’t stand without access to computer for a longer time. The reason that hides behind it concerns the peer to peer concept. To put it in other words, it is a system of the economy.
There are several benefits of using P2P system as means of connecting multiple devices to the network. The most significant ones are as follows:
Fault tolerant – The network operates smoothly and without any significant data losses. It is all because the fact that even if one node fails, the information is kept and saved.
Optimized – The appropriate balance that is provided by all the people connected to the P2P network allowed others to access any web page or any file almost immediately. What’s more, devices that participate in this system can download any information in parts, what is a great response for servers that require from you downloading a file byte by byte from one source. The system becomes even more noteworthy if there are hundreds of users seeking for the same information.
Secured – only if consistency in the network occurs, a change can take place. It means that all the clients have to confirm the change and allow its access to the data. In case of any hacker infecting one of the nodes with a virus software, the rest of the network disconnects from it, waiting for it to go back to the original state.
User-friendly and approachable – There is no need for a very powerful hardware for you to participate in a p2p network. Weak computers (in terms of their hardware specifications) that constantly operate with the same client software are enough for you to operate a P2P Network.
Obviously, there are other aspects that P2P Network can boast with – a great example might be torrent technology that everyone knows and enjoys using. But what about the economy itself? Is it any different from other modern technologies?
P2P Network and Blockchain technology – the example of excellent harmony
It is worth to note that these two concepts work together very well and quite often they are characterized by saying that they are a decentralized array of devices. Although the whole concept is based on one engine, there are many different ways of implementation. That is why many people tend to call the technology of blockchain as a Peer-to-peer version 2.0.
So what are the differences between P2P and Blockchain? Peer to Peer Network does not deal with human beings and their activities. It is just a soulless hardware. It is obvious that people can control any node, but there is a slight distinction in there. It is because the intellectual system in Blockchain doesn’t need to be controlled, it needs to be verified. Because of that, the technology of Blockchain introduce the element of truthfulness and clarity. These factors had a very powerful impact on the way we perceive a modern P2P technology.
In addition to that, there were people who were trying to find a way to introduce these technologies at appropriate levels in order to depict whether it is possible to apply old methods in a new way.
How does it operate?
Everything is based on the lack of traditional banking systems and other centralized aspects. It is very important to remember that in order to achieve independence in all the elements, one should remember about basing the concept on clarity, user-friendliness, and of course availability.
An innovative method for obtaining electricity
Not everyone realizes, but in many places around the world the electricity system is very outdated. That is why some time ago two companies, namely LO3 Energy together with Siemens decided to start a unique project that makes use of a blockchain technology to distribute renewable electricity. As a result, the owners of solar panels, wind mills, and other generators of green energy managed to establish a P2P market and sell neighbours extra kilowatts.
The last year was quite crucial, due to the fact that many companies from all over the world decided to launch exchange for trading electricity. One can come to an understanding that this is how the P2P economy starts!
Karma.Red is a Russian project that was launched at the end of 2018. To put it simply, this project allowed people to make use of a decentralized lending platform. The company introduced its own, innovative type of lending. Cross-border P2P financing is a manner that was prepared for small and medium-sized entrepreneurs. There, it is possible to borrow money. The whole process is divided onto two stages. The first one focuses on verifying the borrower. The second one is simply an advertisement of a business for investors. As a result, there are no intermediaries, no assistants, no mediators and any third parties that participate in the process of lending money.
However, it is not the convenience that made this project so popular. It is all thanks to the technological aspects, thanks to blockchain involvement. Due to that, the whole process is not only clear and transparent, but it is also verified. This is yet another example of how diverse projects can be. Does it fit the idea of economy of the future? It certainly does!
Transportation services and self-delivery
Just imagine the situation, where you wish to ship a package to the other side of the city. In some situations, it is impossible to do that ourselves, and if we do not attend to it in, let’s say, few hours, the value of the package will be lower or, there will be other consequences related to not meeting the deadline. In order to skip the centralized system of professional logistic companies, there was a company that decided to solve that issue by implementing peer to peer solution.
Last Mile Delivery & Logistics Company are the authors responsible for creating VOLT. This is a project that takes place in the P2P environment. The way it works is very simple and it consists of several steps.
First, a sender leaves a request on the site. There, we need to provide an in-depth description of the delivery as well as the requirements. After that, we set a reward for successful completion. If we are one of the persons interested in taking the order, we have to agree with sender’s requirements and then deliver the package. If we succeed in doing that, we receive special tokens.
This project does not involve intermediaries, logistic companies, or other third parties. It is worth to remember about the use of smart contracts, which monitor the delivery and payments, and all the information are then stored in the blockchain.
It is worth to note that VOLT is not a project that will replace existing transportation services, but it is just an addition to the ones we are currently use. Thanks to VOLT, we will no longer have to worry about decentralization. As a result, everything will be at hands of the users. It is yet another example of how the economy may be affected.
The future is now
Projects presented above are a great indication of how future might look. Obviously, not all the ideas will last longer than several months or years. Some other concepts will be absorbed by larger companies or the ones that will emerge in near future. To be honest, it doesn’t matter that much, because the main point is that the more methods of using this technology occur, the more people are aware of possibilities that come with it.
The economy that utilized cryptocurrency is just getting started. Despite that, there are already lots of questions that require immediate response. One thing; however, is certain. It is the fact that soon blockchain will be a substantial help for the economy when it comes to solving some of its issues.