Limitations of centralization
OmniBazaar, Inc. has launched the beta version of OmniBazaar, their Bitcoin eCommerce platform earlier in 2018. OmniBazaar is encouraging buyers and sellers alike to test the platform.
The global eCommerce market is massive. 2018’s sales projection of US $ 2.842 trillion will balloon to US $ 4.878 trillion by 2021, with giants like Amazon, Alibaba, and eBay reaping the lion’s share of the profit.
If you are selling your merchandise using these centralized platforms, you are likely paying a high commission, and if you are buying, the price you pay includes these commissions. You are also using centralized payment processing platforms with their own transaction fees and delays. Thanks to centralization, your personal and financial information, ruthlessly mined by the service provider, is at risk of exposure in a malicious data breach.
Bitcoin eCommerce is coming
Blockchain uses peer-to-peer (P2P) networks making transactions between peers possible. Cryptocurrencies using this technology also enable dis-intermediated payment. It’s natural for blockchain to challenge the centralized eCommerce space. The free market economy strives for efficiency, and eventually, makes middlemen unnecessary. Amazon, Alibaba, and eBay are those middlemen in the eCommerce space currently, but advanced technologies like blockchain can make them redundant.
However, blockchain is still new, and the adoption of cryptocurrencies is slow. New crypto users often find the processes of opening a crypto account arduous. While trying to disrupt centralized markets, blockchain start-ups should also make it easier to use crypto.
With eCommerce, blockchain startups have two opportunities. They can disrupt existing giants and they can also make it easy to use crypto. Consumers understand eCommerce transaction workflows very well. They will understand crypto easily in an eCommerce setting if it’s presented in a user friendly manner. This is where OmniBazaar enters the picture with their Bitcoin eCommerce platform.
OmniBazaar
OmniBazaar has built a P2P network where users can sell their merchandise to buyers directly. The P2P network removes middlemen from the picture, eliminating 90-100 percent of the fees. Buyers naturally see a lower price for your merchandise.
To participate in this marketplace, you must download the free OmniBazaar software. It’s now a ‘Live’ marketplace, so you can list your products and services for real transactions. OmniCoin is the native cryptocurrency in this network, however, buyers can also pay using Bitcoin.
The ecosystem already includes influencer marketing, social messaging, and reputation tracking. It also includes an escrow system. Users can get bonuses by referring other users and promoting the service. Buyers and sellers can earn additional money if they publish other users’ listings. They can also provide escrow services for more income.
OmniBazaar uses a ‘Proof of Participation’ (PoP) consensus algorithm resulting in 50,000 ‘transactions per second’ (TPS). Their transaction confirmation time is less than 10 seconds. This high transaction volume could make them quite competitive in the eCommerce sector. USer data is private, and centralized players can’t access it. When users sell their merchandise, they receive their OmniCoins or Bitcoins in their wallet. If you are a new crypto user, you will find it easier than opening accounts with exchanges.
OmniBazaar, headquartered in Clearwater, Florida, USA, will conduct their phased token sale in Q3, 2018, with the coin going live on exchanges by Q4. They have a busy roadmap in 2019, which includes a mobile app and P2P crypto exchange. OmniBazaar isn’t the only blockchain start-up entering the eCommerce space. Shopping Cart Elite and Bitcoin Diamond have entered into the fray as well. OmniBazaar has a head start, but time will tell if it emerges on top.
