A Blockchain is a public ledger database of digital currency transactions that have ever been executed in a particular digital currency network. It is the protocol that digital currencies such as Bitcoin and Ethereum are built on top of. It is constantly growing as ‘completed’ blocks are added to it with a new set of recordings. The blocks are added to the blockchain in a linear, chronological order.
This fairly new type of ledger is helping to connect the world today in a way that was unforseen a decade ago. Today, it enables companies looking to scale to do seamless transactions globally without the need of foreign exchange fees, fraud and security risks, and enables faster payments.
The Internet we use today is the Internet of information, and the blockchain is the Internet of value – the Internet is a communications protocol, while the other is a value exchange protocol. Both share the same concept and success, that being the open protocol that everyone can innovate and build around. If you go back to the 90s, it was hard to imagine how the Internet would impact our businesses. Today, it has impacted almost all. The blockchain today is like the Internet in the 90s and is said to be more substantial than the Internet and will impact the world around us much more.
If you wanted to innovate and finance your payments in any sector, there were really no open systems and many interested businesses were limited to their own geographical areas. By having a baseline protocol that allows the world to build and innovate around finance, many things can now be done.
It’s cheap, fast and give instantaneous capability to transmit value as an alternative currency, but most importantly is a ledger so dependable, that it can go as far as governments to put their currency on the blockchain as well.
Ability to Transform the World
Think of the underlying protocol of the digital currency blockchain as the Internet in it’s early days. The Internet was not as useful/valuable back then as it is today without applications like browsers, email clients, google, etc. Today in 2015, the bitcoin blockchain is still in early stages and not as usable to us as consumers the same way as in the 90s, until Internet startups started building the infrastructure to make the Internet usable and now is a global household technology today, but is constantly growing at an even more rapid pace than the early Internet due to the technologies available today, and companies are investing millions and more every year to continuously build on it’s infrastructure.
Companies Taking on Their Own Blockchain Models
From a buyer’s perspective, currently only 25% of the worlds population has the ability to buy things or communicate online. The digital currency blockchain protocol enables every person on the planet with a phone to have equal access and expands the total addressable market to global overnight.
Gluon is a platform that establishes an interconnected network of vehicles where individuals and businesses can be monitored, tracked, tuned, and diagnosed with issues. With Gluon, consumers and fleet managers can connect their vehicles with manufacturers, parts suppliers, and repair shops. They can diagnose their vehicles themselves, order parts, and request bids on repairs. Consumers can tune their vehicles for optimal performance and/or to regulate their use. Repair shops can diagnose vehicles more cost effectively and accurately order the correct parts.
Gluon and Blockchain
When taking this model on an international scale however, there are issues with connectivity, payments, and access. Here’s how they plan to scale.
Automotive companies such as Gluon (www.gluon.com) have taken an approach to the blockchain. Because they are an interconnected company with a huge network of services, to be able to expand that network internationally would require monetary access and technological connectivity around the world. Here is a description to that approach.
Issue to Solve
Current solutions are limited in scope and there is no all-inclusive platform largely leaving vehicles to be disconnected from the interconnected world. The company developed a unique approach to cyptocurrency payments and has developed a reward token to be used within the system to promote adoption and participation. Using cryptocurrency eliminates the need for currency conversions between traditional payment methods, and removes large risks associated with long settlement periods, unwarranted chargebacks, and fraud. The fees associated with the cryptocurrency are far lower than those charged by credit card issuers and lower than those assessed by bank transfer.Download Whitepaper on Glu Token
Glu Token and Ethereum
The GLU token (www.glutoken.com) is not just something out of the air. It has backing. The GLU token utilizes the Ethereum (not Bitcoin) platform and smart contract system. Ethereum is based on the smart contract system and is one of the major differences between Ethereum and Bitcoin. It is more flexible and basically a virtual vending machine which enables customers to purchase contracts backed by Ethereum currency.
With the Glu Token, the smart contract system is like that of a vending machine for the agreements associated with vehicle ownership. Consumers can pay with a GLU token, and the item, whether it is a part, a vehicle registration, or something else, gets ‘deposited’ in the user’s account. Tokens can be purchased via token sale. The use of the blockchain ensures that all transactions are secure, autonomous, and self-sufficient. A GLU token is issued with an eToken contract.
Why Use Digital Currency?
- Low transaction fees
- No per transaction fee
- No chargebacks
- No fraud
- No rejected payments
- No MCC restrictions
- No PCI compliance
- No international restrictions or fees
- Save time; Faster payments
The blockchain protocol is here to revolutionize financial systems, title companies, and any other value and ledger-based system. It’s already making its mark, infrastructure is continuously being invested in, and is here to stay.