Why do we need blockchain when there are good centralized solutions?

There is already a good centralized solution to many things. So why do we need blockchain technology? Kurt Ivy explains why blockchain technology is almost always the better alternative.

In a nutshell, blockchain solves the problem of centralized control. Who is responsible for the information or information flow? Do they handle it responsibly correctly? Do people make a profit just because they control something uncomplicated that everyone else could do just as well?

With blockchain technology, NO ONE controls the information. Access to information is for the benefit of the public, and access to information is determined by how the Internet works at a basic level. That’s all.

To clarify again:

The internet and the systems it contains have become what roads, power lines and plumbing are in real life. Payment solutions, banking and trading are all PUBLIC SERVICES. They are necessary, but not a luxury.

Then you see … It does not matter if centralized facilities are the more efficient solutions in certain aspects

Because these centralized institutions are abusing their position and exploiting the systems that society needs to function properly. If we could trust individuals to do what’s best for the country despite absolutely no incentive or responsibility, then companies like Amazon and Uber would be amazing. Clearly, our trust has been misplaced here, and we are exchanging a few conveniences for prosperity and independence. This will prove to be catastrophic for the future of our society.

Instead, we can also use blockchains to store the data and perform financial transactions. The blockchain does not belong to anyone, yet it is cost effective and secure. An e-commerce platform built on a blockchain could offer all the services that a centralized institution also offers. However, there would be no fees and no censorship. And most importantly, no theft of products.

Let’s dive a little deeper into NFTs …

Ownership of digital records – accounts, memberships, holdings – is stored on servers controlled by institutions. We need to trust them with this information. Amazon, for example, has enormous control over e-commerce because the company has digital goods – inventory – and controls how they appear. The company collects a portion of the profits on both sides of a transaction to generously reward itself for its role as an intermediary.

So you can see, all we need is something or someone we can trust with our data. Blockchain offers a solution.

An image from BeInCrypto.com

Instead of uploading product data to a website, it can be uploaded as an NFT or as a SHOPX E-Commerce NFT (eNFT).

As a result, centralized institutions no longer control our data and therefore do not control e-commerce either.

Blockchain does not ask for profits. It does not require fees (except for small amounts required to keep the system running). Applications built on blockchain are available to anyone, anytime. This is the basis of a truly free market. A digital place where people can buy and sell. Just like they would do in real life without a third party getting involved in the business and having a stake in it.

Another major benefit of e-commerce eNFTs that do not (or will not) offer centralized solutions is interoperability. Currently, each e-commerce platform has its own infrastructure for managing and distributing retail data. This data can not be transferred from one platform to another. To transfer the statements, each information must be re-entered bit by bit.

eNFTs are a solution to this problem. Once the product data is uploaded as an eNFT, it can be used on any compatible e-commerce platform. Data entry becomes a one-time event. This also standardizes data across all platforms.

Tickets, music and video games – NFTs in their element

These three areas are easily accessible to NFT technology. When all three aspects of digital ownership are addressed, the problem is clear: Centralized institutions act as mediators for all three.

What are the key concepts here? Tickets are sold by the venues to the participants. Artists sell music to their fans. Games are sold by the developers to the players (it’s a little more complicated here). If we could exclude all three middlemen (ticket sellers, labels and studios), then we could focus the profits and attention on what really matters. The content.

A picture of Be[In]Crypto

Ticket sales are not a particularly thriving industry. However, there are still big gains to be made by getting in the way of artists / venues and fans. There are other benefits that NFTs offer that centralized institutions cannot match. Controlling the secondary market is a big advantage here. You might think this is more of a bad thing. Why do we want more control instead of freedom? For ticket sales is a very special case.

As for the secondary market, neither venues nor buyers want overpriced tickets, fake tickets, transfer of tickets without payment, payment without receipt for ticket or overly complicated transfers. NFT tickets can be transferred securely without worrying about the other party paying or having a fake ticket sold. In addition, the price can be set so that no one raises it.

Blockchain and music

There are endless problems when labels have full control over artists. The artists become a tool for the label and not a tool that the artist himself uses to distribute his music. This also reduces the quality of the music. There was recently a story about an artist whose label would only produce their music if they made a viral TikTok video. But the same artist’s talents were used to help another artist produce better quality songs.

This just creates a money machine. This machine has only one goal: to produce songs that can be used to make money. Artists and art become secondary. Music NFTs like Yellowheart put the control of music rights in the hands of the artist. As music NFTs become more mainstream, artists will no longer rely on record companies to protect and disseminate their data. The information storage system – NFT – is not owned by a single person or institution. As long as the artist is able to promote themselves, they can keep all of their earnings.

Blockchain and video games

In fact, studies are not the middlemen between the creators and the players. Studios are the creators. But in recent years, the studios have become for-profit companies, and the creatives within the studios have become their tools. As smartphones made apps easier to access and iPhone games became popular, many studios turned to microtransaction pay-to-play games. This is currently the most profitable model. Small, inexpensive games that typically cost $ 1 can slowly add up to tens or even hundreds of dollars.

Combined with other purchases in the game such as skins or items, this is pure merit for the studios. Some studios publish free games. These games depend on players’ willingness to make in-game purchases. Why not give these players ownership of their purchases and allow them to resell them? It would encourage the creation of high quality collectibles rather than cheap boosts that cannot be resold. The studio then earns on resale royalties and players get a profit for their hard work.

A picture of Be[In]Crypto

No, blockchain is not a solution that looks for a problem

To sum up, blockchain is the only technology that can securely and efficiently store digital evidence of ownership. It used to be impossible to claim digital data unless you owned the infrastructure on which the data was stored. Blockchain provides a data storage infrastructure that no one owns and that anyone can access. These benefits are absolutely necessary for society and will have a huge impact on many different industries and therefore on our society as a whole.

About the author

Kurt Ivy is a content writer for SHOPX and Gamerse, marketing consultant for Altar, head of content at Crypto PR Labs and CEO of Coffee Nova. Ivy is a philosopher, futurist, author and entrepreneur.

Disclaimer

All information contained on our website has been examined to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action taken by the reader based on the information on our website is entirely at your own risk.

Leave a Comment