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Advantages of the Decentralized Sharing Economy - Take Ethereum Platform as an Example
- 1 Department of Liberal Study, New York University, New York,10012, United States
- 2 Tepper school of business, Carnegie Mellon University, Pittsburgh,15213, United States
- 3 Annie Wright School, Tacoma,98403, United States
- 4 Nanjing Foreign Language Xianlin School, Nanjing,210023, China
- 5 Nanjing Foreign Language Xianlin School, Nanjing,210023, China
* Author to whom correspondence should be addressed.
Abstract
In this era of rapid development of online transactions and platform economies, many companies operate as intermediaries between Party A and Party B in transactions and gain profits from every transaction. The "middleman", that is, the intermediary, mainly introduces Party A's resources in the form of a platform and allows more users to see and understand Party A's resource information. Platform users, that is, Party B, can save them from searching for the resources they want during the intermediary's promotion and introduction. time cost; however, some intermediaries take advantage of the process of transferring Party B's money to Party A as an intermediary and use some unfair means to obtain profits that exceed their original gains in the transaction as an intermediary, thus causing information between Party A and Party B. Asymmetry creates ambiguity, leading to serious problems in transactions. In this work, we will discuss the advantages of the decentralized sharing economy. Furthermore, this paper will focus on analyzing the shortcomings of intermediary operations in contemporary society from the perspective that intermediaries need to spend a lot of time and economic costs to establish credibility, the lack of intermediaries which are controlled artificially, and the friction of platform p2p transactions. Targeting the above three aspects, the paper will also explain and analyze the operating model of Ethereum to demonstrate that Ethereum is a better online transaction model that can replace the artificial intermediary model in contemporary times.
Keywords
Ethereum, decentralization, middleman, sharing & platform economy, blockchain
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Cite this article
Hu,Q.;Huang,Y.;Chen,Y.;Zheng,B.;Zhu,Y. (2024). Advantages of the Decentralized Sharing Economy - Take Ethereum Platform as an Example. Advances in Economics, Management and Political Sciences,97,331-342.
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