Decentralized marketplaces are one of the many rapidly evolving businesses in the fintech industry. To get a first-hand account of the major challenges and opportunities here, Cointelegraph has got in touch with the developers of the Waterhole service. First decentralized marketplaces eBay, set up in 1995, has grown from a part-time hobby of its founder, Pierre Omidyar, to a huge multinational corporation. It was one of the first decentralized marketplaces, with caveats. True, it is run by a central authority, but it allows people from all over the world to trade things with each other at a low commission – which is more decentralization, than any of the legacy auctions can boast. Being one of the first adopters of that trend has allowed eBay to enjoy immense growth and become the 24th most popular website worldwide. And why wouldn’t it? In the old days, if you had something of your own to sell, the available options were far from ideal. You could set up a yard sale, hoping that a potential buyer interested in the stuff you had on offer would pass by your house and pay attention, which could ultimately lead to a sale at a large discount. Or, you could open a stand at the local flea market and sit there all day, eagerly waiting for a customer, who could never come at all. Now people have eBay, where they can list their goods from the comfort of their own home in a matter of seconds, and forget about them. Later, the system conveniently notifies them that there is a buyer, and all that’s left to do is make the shipment and receive the money. Inadequate moderation It’s no wonder that these advantages translated into huge success for the company. But technology is always advancing, constantly enabling […]
