The advent of the internet opened new ways to exchange goods and services. For example, SOMA is a new digital marketplace that rewards buyers and sellers based on their social interactions.
SOMA is a new actor in the e-commerce sector which eBay, Amazon or Alibabuy dominate today. A blockchain-based project, SOMA's mission is to rethink how users trade online. To do so, SOMA combines social rewards and an innovative platform that covers the product lifecycle from an item's creation to secondary markets.
The global e-commerce market in 2018
Launched in 1995, eBay recorded 162 million users in 2018. According to Forbes, Ebay's competitors Amazon and Alibabuy registered a growth rate of 58,6 percent and 50 percent respectively, from 2014 to 2016. Plus, we expect global e-commerce retail sales to reach $4 trillion by 2020.
However, these centralized marketplaces have some pitfalls. The number one is a lack of transparency over transaction fees. Further, there's a need to streamline processes in the supply chain. The second one is dealing with counterfeiting and fake accounts creation, which led some users to mistrust these platforms.
Launched in 2017, SOMA, an innovative blockchain e-commerce platform, aims at bringing solutions to these issues. How can SOMA find a place among eBay, Amazon, and Alibabuy?
The e-commerce platform of value
SOMA's ambition to revolutionize the e-commerce world starts with two simple principles.
- Everyone who is active on the platform - buyers and sellers - should receive a compensation for their contribution. This is also true for the average user who recommends a product to his network, even though he is not an influencer. SOMA's full reward system is outlined in a Medium post
- All transactions should be fair, transparent, and traceable to foster trust and enable users to trade without any risk of fraud. Second, supply chain history such as access to data points should be accessible to verify the authenticity of products. In addition, with no intermediary involved, transactions should occur at a lower cost, benefiting all users.
Outstanding features for buyers and sellers
To respond to the market's pitfalls, SOMA has launched a viable product aligned to its principles.
“Our purpose is to create a trading platform that supports social behavior and ensures that users who provide value are compensated accordingly,” says Jukka Hilmola, co-founder of SOMA.
To promote social interactions, SOMA has introduced its own cryptocurrency SCT, Soma Community Tokens, which serves as a liquidity in the marketplace. Users get incentives when they are active. For example, when they post items for sale or when they ask questions to the community, they get a reward.
Built on the Ethereum blockchain, SOMA distributes smart contracts that allow users to create Interactive Item Cards (IIC), which showcase the real physical item or service. Through the smart contracts, users can trade items with no intermediary costs. On top of that, users have access to the full supply chain history through the blockchain.
With these new features, SOMA is breaking down the rules of centralization, enabling users to trade freely and get rewards. Finally, SOMA has recently announced exciting news to be released next week on their LinkedIn page.
Picture from Pixabay.