TECHNOLOGY CREATING A LEVEL PLAYING FIELD
Early days of the Internet
Technology should help in the creation of a level playing field. That was the idea of the Internet. At its core, the main property of the internet is to share data between 2 machines.
Data can be in any format (Text data, Pictorial data, Voice data.) and Machine can be of any type (underlying hardware type, size, configuration…doesn’t matter).
Later we saw emergence of the HTTP (Hyper Text Transfer Protocol) & SMTP (Simple Mail Transfer Protocol).
While HTTP helped us in making sure that WEB pages built with HTTP can be accessed by anyone, anytime & from anywhere.
Similarly, SMTP has ensured that mail sent from any server type always reaches to the recipient’s mailbox. That is a mail sent from MS outlook can go to a person having only GMAIL. So, one was not restricted to sending mails only to say, MS OUTLOOK users or only GMAIL users.
Platform Era
But after this we saw the emergence of Platform & APP system. Today, with a mobile phone & internet connection, we can login into a platform or APP, and enjoy watching movies, from the comfort of our home.
On Similar lines, we can order groceries late in the evening, while returning from office to our home (still sitting in the bus). By the time, we reach home, groceries are delivered at our doorstep.
Though these had helped in overall Digital journey, it has also created monopolies in many places.
So, with platforms, we are able to book a taxi rider, order groceries or watch movies. But these platforms created a closed loop. That is, a customer has to login into a specific platform, provide data and can only see movies, which are available on that platform or order groceries from sellers, which are registered on those platforms.
As more & more users started using a particular platform, the value & importance of that platform grew manifold. In many cases, those platforms become a monopoly player or started dictating terms to both buyers and sellers on that platform.
In many cases, these platforms are also charging a hefty fee, when a ‘Seller’ registers on a platform. So, though these platforms provide a bigger market to various SELLERs, but they also had reduced the overall Profit Margin of the Seller (as Seller need to provide fee/commission to the platform).
Also, a BUYER can only see the SELLER, which are registered on that platform.
ERA of OPEN NETWORK
In India, lot of good work is happening in the creation of DIGITAL PUBLIC INFRASTRUCTURE (DPI). As the name suggest, lot of digital infrastructure related PROTOCOLs are developed.
Starting with AADHAR, which helps in providing unique identity to citizens, Digital Locker helps in storage of value, Digital Signature helps in the verification ( think of the paper saved, which earlier banks, universities need to store for years).
UPI has helped in creation of level playing in payments by disintermediating the overall Payment Ecosystem.
On Similar lines, with the help of Beckn protocol, ONDC (Open Network for Digital Commerce) is bringing the next set of revolution in Commerce Ecosystem.
As per the website , https://becknprotocol.io
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beckn protocol is a set of specifications consisting of APIs, data models, reference architecture, transaction mechanisms, and global standards that when adopted by digital platforms, enable the creation of decentralized networks. Such networks allow consumers and providers to discover, identify each other and perform transactions with each other without the need for a central intermediary.
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Important things to note here are
- Creation of a decentralized network, which anyone can join.
- No one big central intermediary. So, Buyers can get connected with Sellers directly, without any intermediary. Also, products of all SELLERs can be discovered by buyers.
- Overall, the cost for creation of an APPLICATION of top of this Protocol, is significantly low.
Applying the same concept to health, education is going to change the overall ‘DIGITAL’ GAME.
For a country like India, which has diverse culture & different languages, not one solution can fit all. A SUPERAPP can help but that also create a SUPEROWNER ( and with the possible risk of monopoly).
Based on solid digital infrastructure, now a person in say the state of Kerala can create an application for all residents of that state, in a cost-effective way.
On similar lines, another person in state of UP can create localized application for residents of UP.
Conclusion
Earlier also I have said that with Digital Transformation, our WHAT part has remained same but HOW has changed. We are watching movies, reading books, ordering groceries but now, we are doing these, from the comfort of out home, at any point of time & through any digital device.
The emergence of various platforms, which had helped in bringing this transformation, started storing value and many a times, small players were left out.
Now with DPI, anyone & and everyone can join the Digital bandwagon. This will make sure that person/seller at the bottom of the pyramid is able to sell his product to anyone across the world.
Technology (and these PROTOCOLs) have brought down the overall cost & hence everyone can participate.
Equal opportunity, Equal choice…No information asymmetry.
