Every single minute, all around the world, knowledge is being exchanged for money. While traditionally this has been done in person, in recent years it has moved into the digital space, and it’s growing at an ever increasing pace. Such rapid progress has brought forth its own set of challenges.
Today, there are no simple and trustful tools or solutions in the consulting industry that support existing applications in the knowledge-for-money exchange. In addition to the high cost of transferring money between two countries and a long wait for funds current, centralized solutions are no longer efficient.
Payment before the consultation begins causes a problem for the advice seeker. Because of the unknown length of the conversation, users overpay or end the consultation too quickly. If the person looking for advice is not honest, the expert won’t get paid for their time. Trust is needed between provider and seeker, and the usage of third party services may have a high withdrawal fee or blocked for any number of reasons.
Enter blockchain, the perfect solution which can move the payment process from a centralized world to a decentralized digital realm. Clearly, blockchain has the ability to increase secure data exchange in industries such as healthcare, defense, law, government and energy, and has the ability to make that data transfer simpler and easier between entities. It can work just as well in the world of consulting.
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A mobile, web or desktop calling application, much like other popular platforms such as Skype, could be used where anyone who owns a smartphone or computer can initiate or receive consultation calls via the app to make calls and settle the payments between participants based on the consultant’s rate.
Payments can be managed by a smart contract and the blockchain. This cutting-edge combination solves two large problems in the consultation industry.
One, there is no need for banks or third-party services to transfer remuneration for consultation, so days of waiting for funds and high costs for every transaction become a thing of the past. And number two, the usage of smart contracts along with the unique mechanism of accruing the expert’s paid rate per minute during consultations solves the problem of overpaying and dishonesty.
Every Knowledge Provider can set their per-minute rate adequate to the knowledge that they possess. The Knowledge Seeker, depending on their requirements, can choose the right expert for them, armed with the knowledge and security they need.
Additionally, a platform like this incentivizes knowledge sharing and allows for efficiency and transparency of charges. Users know exactly what the charges are, and know the funds reach the intended provider. This process also signals to knowledge providers that knowledge seekers are willing to pay for the exchange, which prevents haggling over prices and prevents wasted time determining how the transaction will take place.
Most services like this take a large portion of any money exchanged on the platform. However, using Blockchain, the playing field is leveled, and anyone can offer their services at any time, for any price, and expect to keep the vast majority of money they make.
The unbanked or underbanked prefer payments in cryptocurrency because their fiat currency is hyperinflated or unstable. These are the people for whom this technology can really benefit, as they can pay or be paid in a consistent currency. Anyone with a need to do so can now talk directly with anyone else at any time with the click of a button.
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Current estimates show that online transactions cost users today at least 12%. In some instances, businesses lose more than 5% of their value when making online payments. Through the use of blockchain technology, cryptocurrencies like Bitcoin and Ethereum are increasingly filling this gap. Currently, digital currencies are used in more than 40 national currencies, about a quarter of all currencies recognized by the United Nations as legal tender.
It’s not a stretch to say that blockchain is here to stay and is impacting myriad industries and companies around the world. Here are just a few reasons why companies are using or planning to implement blockchain technology.
• Blockchain has the potential to reduce bank infrastructure costs by 30%
• Banks using blockchain technology stand to save $8-12 billion annually
• The global blockchain market is expected to be worth $20 billion by 2024
• IBM is investing $200 million in blockchain-powered IOT
The technology’s real power is as a catalyst for innovation in nearly every field imaginable. If it has a greedy middleman, like online payments or consulting, blockchain can completely erase that middleman, providing a better system to both ends of the equation.
Blockchain promises to disrupt a wide array of industries, and you can learn which ones will be impacted soon here.