How Web3 can implement dual-sided marketplaces for real world usage.
An article curated by Watson Lewis-Rodriguez, with revision by Noah Maskens and Spanish translation by Pedro Chacin, from Pigeon DAO.
Introduction
After a few years in Web3, building logistics and package delivery marketplaces, I have discovered untapped use cases and extraordinary opportunities in blockchains that have the potential to revolutionize the entrepreneurial world. Blockchains and smart contracts offer a unique level of transparency, whose value is yet to be fully realized by everyday entrepreneurs and workers. Today, I present an introduction to how niche marketplaces using bilateral smart contracts can connect entrepreneurs and prospects, potentially preventing monopolies in Web3, easing the barrier to entry, and reducing costs for businesses venturing into new sectors.
Web3, the new iteration of the World Wide Web, incorporates decentralization, blockchain technologies, and token-based economics, differing significantly from the centralized control of Web2 over transactions, content, and data. This shift from centralized to decentralized control offers profound implications for how data and digital assets are managed, potentially changing how the internet is monetized and even how web-based corporations function.
One of the core components of Web3 is smart contracts. These self-executing contracts, with terms written directly into code, automatically execute when predefined conditions are met, enabling transparent and efficient marketplaces without intermediaries. This transparency is a critical aspect of blockchain technology, where each transaction adds a block to the chain, reducing the likelihood of fraud and preventing unauthorized alterations. In contrast to Web2’s private data networks, blockchains provide direct transparency in transactions, thereby fostering trust.
Take the example of Zirio DAO, which is creating a marketplace for global package delivery. It mirrors existing Web2 infrastructures in functionality but leverages the power of Web3 to enhance transparency and trust. Each courier driver in their network has a publicly accessible portfolio of completed work, thanks to blockchain technology, providing immediate and transparent compensation through smart contracts.
The rise of these marketplaces marks a significant shift in how businesses can operate and interact with customers. Web3’s approach to data ownership and control, where data creators own and manage their data, enhances user engagement and privacy. This shift is not just technical but philosophical, moving towards a paradigm where users are not just consumers but active participants and, in some cases, shareholders.
However, the journey towards a fully realized Web3 is not without challenges. The high transaction fees, technical complexity, and dependence on centralized infrastructure are current barriers to adoption. Moreover, educating a largely Web2-acclimated audience about these new paradigms is crucial for the widespread acceptance of Web3.
In conclusion, as these marketplaces continue to evolve and expand into various sectors, from product sales to services like pressure washing or home remodeling, their potential to disrupt and innovate is immense. I believe that with systematic and thoughtful development, these marketplaces will greatly impact the world, offering transparent, efficient, and equitable opportunities for entrepreneurs and consumers alike.