YouDeal Just Raised $8 Million from Leading VCs to Revolutionizes the Global Peer-to-Peer Service Industry
Originally published on: CoinSpeaker
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August 10, 2018
These platforms play a big role in our daily life and make things easier. YouDeal is such a platform that matches service requesters and service-related freelancers in a more efficient, reliable and secure manner.
YouDeal seeks to incorporate a blockchain-based protocol for its platform. The use of blockchain encryption technology allows YouDeal users to retain their privacy. In addition, YouDeal provides a more robust and reliable rating system, which alleviates concerns of malicious bad reviews, through the standardization of the peer-to-peer evaluation system.
YouDeal’s first appeared in the public’s eye during 2015 with its strategic partner Yuedan as one of the first true P2P skill trading platforms in China. Initially, services on board of the platform were mainly daily life services, such as tour guides, fitness, self-driving, running, Yoga, and a plethora of other daily activities. After three years of development, the Yuedan platform has now grown to encompass the entire life skills market. Users can find any services they require with ease.
YouDeal and Yuedan have similar features and share the same userbase, this gives YouDeal a massive advantage to bring forward adoption of its platform. YouDeal will also address some of the pain points of existing Yuedan such as payments and transaction privacy by incorporating a YD token that will incentivize further transactions on the platform with its robust token economics design.
No matter how good the platform is or how diverse the services on the platform are, a user-friendly interface and structure are vital for good customer experience. YouDeal focus on making the platform as user-friendly as possible. Users are provided a market information service portal which allows them to choose the services they require effortlessly. The shop resembles a Taobao shop, but provides services instead or products.
YouDeal fills a much-needed niche in the services industry. The value of YouDeal is widely recognized by investors. As a matter of fact, YouDeal has been making waves in the crypto industry with the private sale round of their ICO, which has successfully raised over $8 million to date from more than 10 leading venture capitalists and investors such as Node Capital, Genesis Capital, and Grand Shores Fund.
In a short span of 3 years, Yuedan already has a massive 50 million registered users and 10 million active users a month on their platform. Yuedan is still growing quickly, recent statistics show the growth rate for the platform is still at an impressive 10% MoM. There are 400,000 transactions take place per month over the platform. Considering that these transactions range from ten to two hundred dollars, it’s obvious how much value this platform is.
Mr. Ken Dong, YouDeal’s Chief Advisor, who is a successful entrepreneur and founder of Yuedan, explained:
“Male users are the majority of service industry clients with the report revealing that 70% – 80% of service industry users are older, wealthier, men, and there’s a huge socializing element to the platform and this lead to the stickiness of the platform.”
Ken Dong commented while discussing the direction of the platform:
“The current e-commerce market is saturated.”
Recognizing these challenges, YouDeal decided to focus on the services industry as the blue ocean. This focus has allowed the platform to carve out a significant niche in this hyper-competitive online market. Think of YouDeal as a service-based ThumbTack-like platform that services China.
It is common to see fake review and ratings among marketplace platform and blockchain technology can help to build a trustable reputation system in the platform. Reviews or ratings can be changed on a centralized platform however once the transaction is logged into the blockchain, it is immutable.
This is especially important on a service marketplace as unlike standardized products where sellers can provide a guarantee, the service marketplace relies heavily on the ratings and reviews of users.
Ken Dong thinks that the potential of service marketplace platform is massive and will potentially be worth more than the top social messaging platform if the privacy issue can be solved. As users require even more privacy on the transaction than information exchange.
The numerous personal data breach cases lately have made users even more wary of uploading their personal info on any platform, in view of this, YouDeal put a heavy emphasis on protecting users information privacy. YouDeal will utilize a combination of different encryption technology such as self-destructing messages and zero-knowledge proof to ensure the privacy of information on YouDeal.
Compare to other blockchain projects that start from zero, YouDeal already has an advantage of massive and growing userbases it can tap into, while using blockchain technology to solve some of the pain points that currently exist in offline C2C marketplace.
The community is excited about the prospects of this platform. Many see YouDeal as a revolutionary step towards the further digitization of our economy. One thing is for sure; the service industry will again be the same.