The industrial revolution liberated mankind from the animal power dependency, mass production no longer a myth, leverage digital capabilities to billions of people. Then what next?
Now we arrived at the gate of the 4th industrial revolution, or Industry 4.0. This phase represents the combinations of cyber-physical systems, internet of things, and the internet systems itself. Briefly, this is the smart business idea when machines are added to the web connectivity and connected to systems that can visualize the entire production chain.
In society, every industrial revolution changed the way people live, work, and communicate. Without exception, the industry 4.0 itself. The evidence of this dramatic event marked by so many changes that occur at exponential speed. Fusing the physical, digital and biological worlds, affecting all disciplines, economies and industries, and even confronting the ideas about what means to be human.
Facing this event, the business world is also adapting, especially on the business model. Efficiency about the production and manpower are being adjusted to the latest inventions of the industry 4.0. The fusion of sharing economic and blockchain.
What is sharing economy?
Sharing economy is an economic model who is defined as the collaborative consumption or the peer-to-peer (P2P) based activity of acquiring, providing or sharing access to products and services that are facilitated by a community based on the online platform.
Sharing economy often referred to be the fastest segment in business. Helping the business ecosystem to be more efficient. It allows people to share its assets, Airbnb and Uber for example.
There are several factors that make the sharing economy become a business model that is widely supported, including in Indonesia.
First, Internet access which provides a means to exchange information. Second, mobile devices make it easy to access information at any time and anywhere when needed. And the third is the emergence of a marketplace platform on the Internet that creates new relationships that are no longer the form of consumer-corporation-workers, but entrepreneurs who provide products and services.
This sharing economic model has extensive access to availability, because goods or services can be provided by anyone.
Ain’t a saint, Sharing economy still has it’s dark side
Unfortunately, this poster-child of the industry 4.0 not always a saint, it still has a dark side. Though technology can be a powerful agent for good, it can’t be denied that every innovation still has its own homework to be improved. In this case, is the centralized system.
Centralized issues often appointed to this new wave of business. like what is often occurs in the sharing economy business model, it still vulnerable to be shut down at any time possible by the authority, if it comes to face the regulatory contrariety.
In additions, on the centralized system, the transactions between consumers and providers are routed through infrastructure, hubs, and software that belong to the companies that own the platform.
In the meantime, besides taking fees, the platform owners are in absolute control of the networks, they often have abused their capacity, monetizing the private data of their consumers. The worse part is, individual providers and consumers have no ideas of what’s just happened.
The dynamic duo, blockchain-sharing economy brings the truest peer-to-peer interactions
Regardless of all the hype, sharing economy to be perceived has passed its heyday. It is stated that “The ‘Sharing Economy’ was dead”, describing the saturation of things that are generally referred to its dark sides.
However, the combination of blockchain and sharing economy might create a revolution that provides dramatical changes to the trend and gives the possibility to share wealth outside certain companies and individuals.
In essence, this technology emphasizes the healthy business ecosystem as the system tried to solve the unnecessary fees problem and improving the security system for the data existence.
Much more inexpensive, the platform is severely limit, sometimes completely cut out, the need for an intermediary. It allows the truest peer-to-peer interactions, eliminates the 20–30% transaction fees that come from the middlemen.
Provide much-needed transparency, blockchain is an ever-growing set of data blocks. Each block records a set of data transaction that is distributed across a group of computers called nodes. Each nodes has its own copy of the data set transactions, and every change made can be traced and recorded simultaneously.
This is the decentralized character of the blockchain, where there is no central point of authority that recording the data and makes the blockchain impossible to be hacked. In order to hack one set of data, hackers need to attack every node that connect in the network. This security aspect is what Tokoin will utilize in terms of distributing crucial transaction data as the fuel of MSME reputation generator.