General Idea
Layer Protocol wants to create a system that could benefit other projects, dApps and platforms. With the popularization of various services which need to trust the users with their products, Layer Protocol wants to create an ultimate reputation system, so that service providers can see if they can trust their clients or if maybe they want to reward them and incentive the positive and good behaviour.
New Trend In Services
The developers behind the project have noticed that in recent years asset-sharing has lead to a new generation of successful and popular companies. These companies have changed the way people perceive the idea of ownership. There are more and more services and platforms that rent various types of assets.
For example, we can notice an increased amount of accommodation providing sites like Airbnb or Booking to name a few. The automotive industry is also seeing companies like Mobike or Zipcar which rent out vehicles and cars, while big and established companies such as Uber or Lyft will soon explore the possibilities that are granted with the development of autonomous vehicles and self-driving cars. All of this happens without any supervision of the workers. You can easily rent a flat for few days and don’t even see the owner personally, while all of the information about keys or entrance codes are provided to you in a mobile app.
The sharing economy is poised to hit $40 Billion in revenues, driven by carshare, rideshare, bikeshare, and vacation rental. Irresponsible users increase the cost of providing services and hinders the sharing economy. With this phenomenon there is an increased need for trust and this is the aspect this project wants to improve.
Reputation System
Layer Protocol will be a decentralized reputation protocol for this global sharing economy, which can easily be added to any existing platforms or future dApps.
Assets providers will have an access to information like network-wide reputation scores of their users, with credit checks that they can use to determine if maybe they should charge deposits or prepays for lower reputation clients. They can also use this information to reward good users, for example for parking the vehicle responsibly. They can also rate the user to help other companies or even warn them and safe from potential losses or destroyed assets. Even though, in most cases there are already measures and laws that protect them financially from such cases, it’s always better to prevent than to solve the problems or repair the devices.
First Use Case
It’s worth noting that before hitting the rest of the market, Layer will be showcased and used by the Spin platform, which specialize in providing scooters and bikes all over North America. It is a leading urban and campbus smart mobility provider.
This partnership will significantly improve Layer’s utility and make it one of the most used blockchain technologies in sharing economy. It is also a good way to get their cryptocurrency to the mainstream usage, as there will be an increased need for LRX tokens.
The Token
LRX will act as the main payment method within the platform. It is en ERC-20 token, fixed in supply and can be used for the payments to asset providers, rewards for the users or to power Layer Nodes and the smart contract will take care of the reputation system. It also acts as a key driver of self-governance of the protocol, as Layer aims to be a community-driven platform.
The Team
The current core team is relatively small, as it consists of 5 people. However, it is expected that with the development of the project there will be more members and programmers. There are members from Spin, which can act as an advantage as this means that they already have experience with running a company and know this asset-sharing market. There are also people who have worked with companies like Lyft or have cryptocurrency-related experience with No Rest Labs, where they had to implement proofs of concepts, TGE, smart contracts and other distributed technology on a project basis. No Rest Labs is also listed on the site in the engineering tab, which means that they will also be able to provide development help for the project. They worked on projects like Lendroid, WeTrust, Aimedis and tagMonkey.
The advisory board is quite extended and consists of founders and CEOs of big cryptocurrency-related blockchain projects like TokenUnion or Origin Protocol.
Final Thoughts
The project seems to be at a very early development stage, therefore there is still a lot for them to accomplish and solve. At the moment, there are not many details about the development process or how exactly will the platform look like and operate. However, looking solely at the idea and the suggested solutions Layer has a chance of becoming a universal reputation platform, especially as this market that they are exploring will only expand in next years. There will be more and more services renting out things and to minimize their own losses, these companies may try to look for projects like Layer Protocol.
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