Running an online business may seem more daunting than ever before. Consumer behavior has shifted drastically, and the coronavirus pandemic is adding its own flavor to the mix. Business owners putting a strong focus on the sharing economy will be able to gain a competitive edge.

In this modern day and age, setting up a digital business has never been easier. There are hundreds of tools, strategies, and approaches to choose from. One thing they all have in common is a desire to put the consumer front and center. Welcome to the era of consumer-driven online business.

Focusing on the Sharing Economy

Given the current behavior and expectations of consumers globally, taking the right  business approach is crucial. This is why the sharing economy has begun to play a key role in digital business. Business owners can now tap into their network of peer-to-peer sources to acquire, provide, or share access to goods and services.

It is a very different model compared to how businesses have been run traditionally.  Giving individuals an option to rent out their own products and services through online businesses or platforms has allowed for the creation of many new jobs. Early business models of the sharing economy include Uber, Airbnb, and so forth.

Now is the time to evolve this existing model and take it to a whole new level. Both newcomers and established companies need to keep growing and evolving to remain competitive in this industry. Keeping close tabs on new technologies will play a crucial role in this regard.

The Growing Importance of Blockchain

New digital businesses do not have access to virtually unlimited funds like their established counterparts do. Some may see this as a hurdle, but it doesn't have to be. There are other ways to provide a valuable business as part of the sharing economy without spending millions of dollars.

Blockchain technology has the potential to transform or streamline any business model. This also extends to the sharing economy and building a digital business. One example of disruption comes in the form of tokenizing business hours for smaller companies, something that has been made possible by TimeCoinProtocol.

Customers are able to purchase these tokenized business hours in exchange for any service the platform in question may offer. As the network of users provides a wide range of services, customers will benefit from competitive rates. More importantly, this model can apply to any type of service offered, whether it is astrology or helping someone file their taxes.

As a digital business owner, incorporating these technologies can be beneficial. It gives one's online platform a competitive edge, making it more attractive to those looking for services, as well as those providing said services. Blockchain technology is very powerful, and it can be used in many different ways to usher in a new era for digital businesses.

The era of Digital Finance

The sharing economy is a logical extension of the shift to digital, which occurred since the inception of the internet. Using the World Wide Web has allowed for many interesting models, including e-commerce, social media, and a major shift in how financial products and services are accessed.

Following the havoc created by the coronavirus pandemic, a stronger shift to digital finance is likely to occur. This is another aspect every online business owner needs to be aware of. The latest shift in digital finance to gain some traction is decentralized finance, or DeFi. It provides access to traditional services, such as trading platforms, lending, and derivatives, without having to rely on centralized service providers or banks.

Competition in the DeFi space has been heating up as of late. New products and services are being launched on a monthly basis. One such new segment focuses on multi-asset borrowing and lending. Rather than limiting the Kava platform to just one digital asset and a native token, it can support the likes of Bitcoin, Ripple's XRP, and Binance Coin, to name a few.

Interoperability between the different blockchains and crypto assets can help elevate DeFi to the next level. Not only that, but it will also prove beneficial to the sharing economy as a whole. Bringing larger communities together will bolster existing products and services, as well as introduce new ideas waiting to be tried out.

This is by far the most exciting time to launch or transform an online business, especially if it can tap into the burgeoning sharing economy and decentralized finance.