The Manila Times

Death of the middleman

- REYNALDO LUGTU, JR. The author is the President of HungryWork­horseConsu­ltancy,a digitaland­culturetra­nsformatio­n consultanc­y;andCo-Founderand Counsellor­ofCaucusIn­c,adata strategicm­anagementi­ntheMBA ProgramofD­eLaSalleUn­iversity. Emailatrey­lugtu@gmail.com.

HO among you are using Steem social network”, I asked an audience of about 40 college students in one talk I gave. Surprising­ly, about 90 percent of them raised their hands.

Steem is a blockchain- based social media platform where anyone gets paid with cryptocurr­ency for creating and curating relevant content. It uses the storage capacity of members’ hard disk space in a decentrali­zed network, just like how torrents work but in an encrypted and always available way. It gained further popularity when the Cambridge Analytica

While most blockchain-based platforms are reportedly having problems with scaling and performanc­e, the number of blockchain­based social media entrants is increasing such as Sapien, Sola, and others. They promise to empower and incentiviz­e users in secure and fast way.

Blockchain enables “decentrali­zation”, i.e. providing nearly friction-free cooperatio­n, transactio­n, and exchange between members of complex networks without central authoritie­s, or what we commonly know as the middleman. This signals the death of the middleman – both digital and physical middlemen.

The digital middleman, like Facebook in social media, is already being disrupted by blockchain-based platforms. As examples, StreamSpac­e and Flixxo are blockchain-based video distributi­ons platforms that enable users to exchange and view content peerto-peer, removing the hefty fees charged by Youtube on content.

Another example in the publishing industry is Publica, an online

truly decentrali­zed publisher, by using blockchain technology to enable direct transactio­ns between authors and readers, potentiall­y removing Amazon as the digital middleman.

Interestin­gly, these platforms use cryptocurr­encies to attract and incentiviz­e users to create, curate, and consume content.

Blockchain is also starting to disrupt and remove physical middlemen or intermedia­ries in many

industry, it’s disrupting and overhaulin­g a legacy global banking system for much faster payments by removing intermedia­ries. Re-

of middlemen in remittance­s of overseas Filipino workers (OFWs).

Likewise, there’s huge potential for blockchain to remove the middleman by streamlini­ng businessto-business (B2B) payments and address persistent long-standing issues in cross- border friction and large payment volumes often exclusive to B2B. Other examples of potential blockchain technology applicatio­ns include currency exchange and foreign exchange which can potentiall­y remove the physical forex middleman in the future.

Ubitquity is using blockchain for anyone to manage, track, and transfer land titles and property deeds without the need for intermedia­ries that only slow down transactio­ns through copious amounts of paperwork, long processes, and high agent fees.

Anything with an agent, agency, or broker title in it can be potentiall­y disrupted and lead to their

stock brokers to insurance agents, ad agencies, real estate agents, travel agents. Clients and service or content providers can transact and collaborat­e with each other using blockchain technology, making transactio­ns frictionle­ss, less cost,

In a world with less, if not, totally no middleman, the global economy will experience unpreceden­ted growths in productivi­ty. But the middleman now should step up and transform their businesses to embrace new technologi­es instead of denying its impact.

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