My essay to a school task in digital economy. Hope you enjoy, and feel free to comment on mistakes or meanings (not language).
(From Norwegian to English with Google Translate, be aware of errors/mistakes - sry about that, but did not have the time. I will update the language when I get the time next year.)
Abstract
Blockchain is changing how digital technology is used. It has driven over 1000 new crypto currencies with different characteristics and helps change the sharing economy as it is today. The ability to run websites without advertising, subscription or other payment solutions is in an interesting development. The essay addresses Blockchain, sharing economics and revenue models for the website, as well as contributing to the assessment for Digital Economy in the autumn semester of 2017.
Blockchain and sharing economics
Blockchain, the technology behind cryptovaluta, has become too bright in 2017. People around the world buy Bitcoin with credit cards to take a hopeful gain from the new trend. The world market value has exceeded $ 600 billion and the over 1000 available coins with different characteristics. Regardless of this, coins are used today to exchange other coins, in line with the stock market. In addition to trading opportunities, the coins have different technology based on blockchain technology. It provides new, innovative solutions for the digital world market. It can help create business models between two parties without a third party involved.
It's only a matter of time before companies like Uber and AirBnb are being overridden as an unnecessary third party. The divisional economy shifts speed in Norway and the explosive growth opens up a new market. There will be competition for technology that can promote the best solution. So the question is what solutions can it be?
What is interesting to look at is the business models of companies like Youtube, Netflix, Twitch and Facebook. The companies use either a third party to get paid for their service or offer a subscription to users. For the former, companies exploit users' attention and send advertisements through predefined parameters to reach the target audience. From the perspective of users it costs time and weakens interest in the website. There are many ways companies force users to subscribe or view advertisements. Should not this change? If one uses blockchain, technology can help users provide negotiating power in the form that they can offer something useful to the content provider. What could it be?
The potential of blockchain
In the HBO series Silicon Valley, the main character Hendricks comes up with the idea of a decentralized network built up of smartphones worldwide. If all smartphones save data that is currently stored on servers, one will be able to build a peer-to-peer network without the use of external storage devices. This is basically very similar to Ethereum, another technology that uses Blockchain. Here the users offer what they always do, namely the phone. After seeing the series, users do not get anything left to offer their mobile, but the thought can be relayed to other applications. Everyone has a smartphone and we always hold information about ourselves. Why can not this be used in a revenue model for web pages?
“Blockchain will go far beyond finance to affect the lives of almost everyone” was something Jeremy Wilson told the press. If we look at the theory of the creators, this can be voted. It is possible to use blockchain for more than one financial tool. If blockchain enables a decentralized network of mobiles, it's up to the imagination to come up with other uses.
According to Wikipedia, the word sharing economy is different business models based on transactions between individuals, conveyed through digital platforms. Can we find other ways to exploit this to achieve a free and advertising-free service?
Platforms and solutions
Steemit is a social media platform where one gets paid to publish or rate content. The platform is built on Steem blockchain and produces something called STEEM and Steem Dollars. Up to now, a value of over $ 22 billion has been distributed to all content producers who have posted something on the Steem blockchain. That is, Steemit Inc. has developed a dynamic website without advertising, where value is created by content creators creating value for the network. Basically, the developers who useSteem can pay through the percentages of content providers, or they can help create content. The business model around Steem requires a website based on content production. The developers then become an indirect third party by offering the platform. The disadvantage of such a solution is that content must always be created, limiting applications and requiring a high flow of content to the page.
Another interesting technology comes from Coinhive. Coinhive offers a JavaScript mine for Monero blockchain that can be implemented on a website. As they type on their website, users can run the browser directly in the browser and mine the current crypto against an ad-free experience or other incentives. For example, Netflix offered users to watch the series for free as long as they use the page. That is, Netflix switches the opportunity to see a series against the user running the miner on the machine in the background. It opens up sharing economics between users and suppliers - without the need for advertising, membership or other income models.
Interesting technology
Steemit has an interesting technology, but what happens when the value increase ends? And to what extent can one utilize a technology driven by content production? Coinhive also has an interesting solution, but the technology is new and improvements with the use of blockchain remain in this way. To use such solutions requires a high frequency of users and they must be on the web pages over time. In addition, there is also a problem that mobiles are not powerful enough to have an effect without losing the battery. Either way, there may be a prospective opportunity to pursue. If users consider it acceptable, it remains to be seen.
One last opportunity had been to link such technologies on a website. It is clear that not everyone can use such a revenue model, but there are always alternatives that are not investigated or the ability to create something themselves. Gathering these into a single solution, it can provide innovative models nobody had ever imagined that a website could use. It may be the next opportunity for a profitable website, without any advertising, subscription or other payment solutions.
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