A peer-to-peer service is a platform that matches individuals with tasks to be completed. In other words, it’s a marketplace where people earn money by connecting with others and completing their tasks, such as programming, graphic design, or even cutting the grass. A peer-to-peer service usually has the following features:
1) A wide range of tasks that many people can complete.
2) A reputation system so that workers can build up trust over time and workers can rate clients as well.
3) Payment for completed tasks through money, goods, or services.
4) Providers share their profits with the workers – pay them in exchange for their work on the marketplace.
5) Workers are compelled to complete their tasks. They can’t pick and choose. No job boards exist, so everyone has to be ‘active’ to earn an income.
6) Workers can usually work from home if they have access to the internet.
Understanding Peer-to-Peer Services
With multiple websites being created each month, the internet provides many new business opportunities to small and large businesses. The internet has allowed a new way of doing business where companies don’t have to take high risks in new ventures. They can start with a bit of money and then scale to bigger money. Although most peer-to-peer services are internet based, the movement has gone beyond being just the internet.
The Theory of Peer-to-Peer Services
Peer-to-peer services are classified into the freelance marketplace and the sharing economy. Both of them have different features, but their principal features are shared.
The freelance marketplace is based on the idea of sharing profits with workers in return for individuals performing tasks. This provides a great incentive to complete more jobs. Moreover, peer-to-peer services will tend to use quality mechanisms to screen providers. They will be ranked according to the reputation they have built. The sharing economy requires participants to share their profits with the community they are part of. For example, Airbnb gives its hosts a higher percentage of revenue than hotels do.
The Basic Design
The basic design of peer-to-peer services usually consists of three components: an interface, a reputation system, and a search engine.
The interface is the first thing users often see, and it’s important to emphasize the visual appeal of these websites. The design should be attractive and easy to navigate. The reputation system will act as a form of verification of the providers. It can be either a social media platform or an independent service. It should serve as an additional layer of security that helps to protect against fraud and user privacy concerns. The search engine is the core of the website, where users will submit a request for tasks.