Decentralized marketplace development - outsourcing company Boosty Labs

Decentralized marketplaces development

A decentralized marketplace allows users to transact without any central oversight that charges fees. This is possible thanks to blockchain technology and smart contracts. There is no need for a third party to verify merchants and make payments. Boosty Labs is a world-class fintech and cloud engineering team with a solid background of practice that combines consulting, strategy, design and engineering at scale. Drawing on its extensive experience, Boosty Labs team can help with decentralized marketplace development.
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Benefits of a decentralized marketplace

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Increasing confidence

The use of distributed ledger technologies (DLT, blockchain) makes it possible to ensure the trust of all platform participants in its operator. The immutability of transactions in the blockchain guarantees the impossibility of modification or loss by the platform operator of user transaction data. Regardless of the desire of the operator or the critical state of its infrastructure, the person concerned will always receive up-to-date data on their operations, which can be used to protect their rights and legitimate interests.

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High degree of transparency

Reviews and ratings of goods and services are the most requested information for buyers. The use of blockchain technologies makes it impossible to remove this information from marketplaces, providing users with objective and transparent information about products and manufacturers.

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Simplification of trading process

Smart contracts can be used as a very cheap means of automating settlements in the process of online trading. This is especially true for cross-border transactions: a smart contract ensures that settlements are carried out according to predetermined milestones (for example, the receipt of goods by the buyer, the automatic calculation of penalties for delay), and can also serve as a mechanism for resolving disputes and rating participants in transactions.

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Savings on transaction costs

The tokenization mechanism can be used both to pay for goods using cryptocurrencies, and to record the cost of mutual transactions and conduct a netting procedure to reduce transaction costs and make payments only on the balance of transactions for the period.
To ensure the security of settlements, both cryptocurrency and fiat currencies can be reserved. The latter is especially relevant, at present, small and medium-sized businesses are often unable to pay the cost of services provided by financial organizations to ensure cross-border payments (letters of credit, bank guarantees). With the help of the marketplace, these costs can be borne by the platform operator once.

Types of decentralized marketplaces

By product type

On this basis, decentralized marketplaces are divided into four types: goods; services; information; investment.

By audience reach

Under this criterion, the platforms are divided into vertical ones – they offer the buyer goods from different manufacturers from the same product category; horizontal, offering products from different niches, but in one direction, and global that offer all kinds of goods, which resembles a huge virtual hypermarket.

By type of business model

On this basis, decentralized marketplaces are divided into three types: B2B – business provides goods and services for business; B2C – companies provide goods and services to individual customers; C2C – individuals sell goods and services to other individuals for money or through barter.

Decentralized marketplaces have the following features:

  • offer a wide range even within the same product group;
  • both the marketplace itself and third-party sellers trade on the site;
  • users and sellers must register and log in to the marketplace website;
  • several companies can sell the same product of the same manufacturer;
  • sellers have a personal account where they monitor the number of sales and turnover of goods;
  • visually, the marketplace resembles a regular online store, but the seller’s brand logo is added to the product cards;
  • offers a variety of payment options, and payment systems should work without failures, as this is one of the main competitive advantages of this type of trade;
  • has separate sections for user reviews, where buyers can comment on their purchase and assign a rating to the product and store;
  • the marketplace makes a profit by taking a subscription fee, commissions and interest for the sale of goods and services.

From the point of view of the consumer, a decentralized marketplace is a very convenient shopping platform, because it allows you to purchase almost everything in one place with just a few clicks.

From the point of view of sellers and resellers, a decentralized marketplace is a large-scale marketplace with a huge amount of traffic, so it is much easier to find your buyer. Thanks to the marketplace, sellers do not have to create their own online store, saving money and time on its development and promotion on the Internet.

For the creators of the decentralized marketplace, this is a huge, highly profitable business. The first time after the creation of the marketplace, you need to invest huge budgets in mass advertising and sign contracts with many sellers. After that, buyers and sellers will themselves strive to get to the trading floor, while there is still not too much competition on it.