Online markets are constantly improving as platforms become easier to use and more convenient for both buyers and sellers. As we move towards a more digital centric day-to-day, the parties that facilitate e-commerce become gatekeepers to competition and center points prone to security concerns. Spl.yt, a Science Blockchain backed start-up out of Santa Monica CA, leverages Blockchain and smart-contracts to solve these problems, enabling all users to profit from a decentralized e-commerce experience and set the stage for the continued evolution of online marketplaces.
Spl.yt automates the inventory listing process, fraud and spam detection, and payments to affiliate marketers by using smart contract protocols. Spl.yt “splits up” these tasks, normally done by 3rd parties, to incentivized users by combining Blockchain and Smart-contracts. The result, e-commerce buyers and sellers can transact online for cheaper with less hassle than ever before.
Like Uber incentivized the use of ride share, Spl.yt too incentivizes users to identify fraud, rewarding them upon successful reports. In terms of reviews, users are again incentivized to leave a review through monetary rewards, which benefits both future buyers and the reputation of the seller. So, how exactly is this done? The secret sauce (not so secret since its an open source protocol), is a proof of stake mechanic, a pivot of Blockchains traditional system. Proof of Stake, in a nutshell, is where users in a system use collateral to stake claim on actions, deterring bad behaviors and removing the need for the intermediary. Implementing this system into the e-commerce process creates efficiency by allowing users to transact directly with one another, again saving time and money.
For those not heavily versed in Blockchain or Smart Contract tech, the breakthrough this technology provides is trust (or more so, no longer needing trust) — allowing for decentralizing the services intermediaries provide to the participating community. Smart contracts are essentially digitalized legacy contracts which execute commands autonomously, built upon Blockchain. We will share a more in depth write up of what a proof of stake system is, and how its pivot of Blockchain’s traditional proof-of-work system will work for the e-commerce space.
Cheaper fee’s and a move away from relying on the monoliths will really allow the smaller online business to compete and stay afloat in the competitive space.We invite those, regardless of crypto fluency, to try out our demo: http://demo.spl.yt/