One Liner: Swarm City is a decentralized marketplace platform for consumer-to-consumer transactions.
The Good: First-mover advantage in decentralized marketplaces; Simple user experience; Familiar online marketplace concept of reputation systems
The Bad: Hard to incentivize platform adoption without formal marketing or incentives programs (see bottom)
- First decentralized online marketplace in the cryptocurrency space.
- Has launched a minimum viable product (Swarm City’s platform)
- Potential to give bargaining power back to buyers
Swarm City Tokens (SWT) gives the platform the essential capability of giving users reputation for their services and transactions. Allowing users to build a reputation for certain services incentivizes competition and specialization on the platform (Better reputation = More Trust).
Use Case Example:
Imagine being able to call a ride from someone in your area, and instead of going through a platform such as Uber or Lyft that will give you a predetermined pricing, you could instead bargain for the best deal possible. Users of the platform can transact freely with minimal fees and at a price, both buyer and seller can agree on. Swarm City has the potential to give value back to buyers in both the sharing economy industry and consumer to consumer markets.
By introducing blockchain technology into consumer markets and the sharing economy industry, Swarm City is changing the relationship between buyers and sellers by making transactions nearly direct rather than through a 3rd-party. The introduction of blockchain tech will not represent a radical change to consumer-to-consumer markets or the sharing economy. However, this change means that Swarm City will pose a threat to the activities within these markets – such as collecting on transaction fees, or providing a platform for buyers and sellers and charging premiums. While Swarm City may face challenges on the user adoption side, their goal is to inspire people to build their businesses and communities through the use of their platform. In this way, user growth will come organically from those looking to build their services and businesses on Swarm City, who will serve as incentives for customers to join the platform as well.
Edit 10/8/17: While Swarm City may face challenges on the user adoption side, their goal is to inspire people to build their businesses and communities through the use of their platform. This model allows platform growth to occur organically through service providers looking to build their businesses on Swarm City. In this way, existing customers to these businesses will be on-boarded to the platform without the need for formal marketing.