Distributed Computing Fuelling Sharing Economies

THE SHARING ECONOMY can be attributed various names – collaborative economy, peer economy, gig economy

Call it what you may, the sharing economy has become ubiquitous and mainstream in a very short period of time. Ordering grocery, food and medicines, hailing a cab, renting apartments, you name it, it can be done from the comfort of our homes using an app. Not only that, one can even get a loan without going to the bank, which is just one of the many big-ticket applications of a sharing economy.

Following are some applications of a sharing economy 

Cab hailing – Uber is the best-known example of a sharing economy. In India, we also know of Ola as a competitor to Uber, while there is Lyft in the USA and Canada. These apps basically match the rider with the driver who picks up the rider from the designated location and takes her to her destination for a fee.

Benefit – for the rider, ease of reaching the destination without the hassle of driving, parking and maintaining a vehicle. For the driver, income in return for time and effort.

Peer-to-peer lending – individuals can lend or borrow money without going through the bank. The platform itself acts as the intermediary and the interest rate is decided based on the credit history of the individual who is borrowing. The risk of default by the borrower is borne by the lender.

Benefit – opens-up possibilities for borrowers who typically would not be entertained by banks and financial institutions for a variety of reasons. For the lender, it is an attractive avenue for investment, the risk notwithstanding. 

Apartment renting – platforms such as Airbnb operate across the globe and help people find accommodation, whether for a short duration on vacation or on a long-term lease.