Is Blockchain the Future of Platform Technology?
It seems that wherever you turn these days, at every conference or trade show blockchain-based initiatives are taking center stage. Whether you are a B2B or B2C platform provider, in retail, advertising, entertainment or any other industry, issues of blockchain usability are a hot topic. But, is blockchain the future of platform technology, or just a flash in the pan?
The advantages of blockchain are undeniable. A decentralized network offers trustworthiness, transparency and security, which are valuable commodities for any business.
Gaining the user’s trust is vital for any platform and the immutability and visibility of blockchain transactions, which are wholly consensus based and transparent make it an attractive option for the user. Moreover, the automatic settlement mechanism in blockchain initiatives enables the enforcement of contracts without either party, or middle-men controlling the process. Finally, since data is distributed across the network no single entity can control the flow of information. Decentralization also means that security is enhanced since data is not stored on a single server.
In a panel discussion at the Blockchain Open Forum on June 29th, David Ham, CEO of VR blockchain firm Scanetchain, noted that the definitiveness of data ownership on the blockchain, as well as the interoperability blockchain affords for companies working together are such powerful plusses that the technology is likely here to stay. He pointed out that “to have a decentralized platform where anyone can participate or do transactions is really important.”
The potential value of blockchain technology to all types of industries is undeniable. However, whether blockchain succeeds in becoming the technology on which future platforms are based is another matter altogether.
One of the main factors that is going to determine whether blockchain technology will finally realize its potential is its ability to meet the business needs of B2B and B2C platforms moving forward and enable them to offer a better service.
One platform provider that is leveraging the disruptive power of blockchain is the Liberdy Data Foundation, which aims to create a fairer, more transparent consent-based advertising ecosystem that pays the user for the use of their data.
Liberdy is hoping that its non-profit Data Foundation can utilize blockchain to disrupt the entire Ad-tech industry and drive long-lasting change. Via Liberdy’s app, the user can automatically extract their information from the companies that track their online activity and harvest their personal data. The data is then segmented and anonymized, enabling the advertiser to access the user’s location, gender, age, relationships status, likes and so on, without the user’s identity being traceable. The user then receives payment from every advertiser with whom they chose to share their data for every targeted ad they are shown and for every product or service they buy based on the data they have shared. Meanwhile, Liberdy’s consent-based data platform offers advertisers access to first-hand, verified data, which up to now was unavailable, outside the walled gardens of Facebook and Google.
Critically for Liberdy, in the wake of a string of recent data-breach scandals, blockchain solves the issue of a dissolution of trust between users and the digital companies that collect their data. All data is highly encrypted on a secure decentralized network. The accountability and transparency it offers ensures that users can control who gains access to their data and can monitor their payments, while marketers can guarantee that the data they receive is consent-based, verified and up to date.
Blockchain technology is the heart of the Liberdy Data Foundation project, allowing the non-profit to design a secure, decentralized and wholly transparent system that enables direct communication between users and advertisers.
Liberdy’s Chief Marketing Officer, Gali Rosen, another member of the Blockchain Open Forum panel discussion, noted that the success of the Data Foundation and its ability to create a more democratic and just data ecosystem depends on blockchain becoming embraced by the general public.
However, if blockchain is to enter the mainstream it needs the involvement of regulatory bodies, as standardization of the industry will be the deciding factor determining whether it sees mass market adoption.
Regulating blockchain presents a complex challenge, particularly when legislators across the globe frequently know little about the technology. Yet, if it is to take off in the mainstream, then the platform providers exploiting the benefits of blockchain have to take the initiative and get involved, starting a critical conversation with regulators.
Rosen notes that it is the responsibility of platform providers to reach out to regulators.
“The Liberdy platform already utilizes the recently introduced GDPR regulation in Europe. Our architecture was designed to adjust to any new regulatory changes in the areas of user privacy and blockchain.”
The future of blockchain-based platforms is wide open. It is not primarily B2B or B2C focused. In fact, Rosen notes that the smartest move is to reap the benefits of both audiences. Liberdy has taken a hybrid approach that enables them to take advantage of market feedback from the end user, as well as driving users to the platform through the recruitment of leading publishers and app developers to expedite growth.
More proof that blockchain is gaining prominence and wider adoption is that we are seeing more and more platforms being built on existing blockchains as well as a surge in private platforms on separate blockchains.
The next year will probably see the continuation of a current trend whereby a race is on between several protocols looking to be the next Etherium. There is no way to know which will come out on top at this stage, but it can only be a positive development as a new unified standard will eventually emerge. Blockchain-based companies will start developing applications, serving as the basis for the growth of the technology.
Rosen notes that Liberdy was designed to adjust to these changes. The company has been built on a private chain due to the scale required for a business that executes real time transactions and is integrating into the existing data marketplace.
There are all kinds of B2B and B2C blockchain-based platforms that are helping the technology gain momentum and laying the groundwork for its mass-adoption. They each have their own specific business needs but all of them have one thing in common. Like Liberdy, they are backing blockchain as the future of platform technology and are introducing it to the mainstream, one customer at a time.
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