Blockchain technology is slowly becoming an advanced form of equipment that is making waves in many industries. In particular, its appeal to mobile devices means that users will be better able to manage their online data and digital personas. In addition, their security will feel tighter due to the blockchain capabilities to keep users in touch with their phones even if they lose it.
However, over the years, mobile devices have been timeless with their presence in the second-hand market. By being able to sell devices that are still as functional as the next phone, they can last for years with multiple users, to the point where it becomes practically unusable.
This market is currently available with the traditional handheld devices that we are accustomed to in today’s society, but is the development of blockchain technology jeopardizing the second-hand mobile phone market because of how advanced the technology is?
Here we look further at the technology and whether it is going to disrupt the market we are so familiar with. In particular, we look at 2 aspects that can have an influence.
Table of Contents
Mobile Phone Insurance
When we think of insurance for any aspect of life, be it a mobile device or a car, there are 2 aspects that make up the cost of the insurance; severity and frequency. For the seriousness aspect, it takes into account how expensive the claim could be and the frequency takes into account how often the insured item could be claimed.
The problem with frequency is that claims are limited to the number of times they can be made. Filing a claim also indicates that the device has become unusable. Therefore, the frequency of a phone claimed is limited to just one.
For seriousness, it relates to the reality of the maximum cost to replace a mobile phone – this is the price of a brand new phone which is the maximum cost of insurance. As the value of a car decreases over time, so does a mobile. This then begs the question, why would you pay the same monthly price of the phone in month 1 compared to month 18?
So, how can blockchain interrupt these processes? TessaB is a blockchain-powered ecosystem that is changing the way consumers buy and sell mobile devices. This means that users can access the ‘risk pools’ data that helps them better understand the condition of the phone.
They have access to details such as how many ‘credits’ are left in the pool, what claims have been made against it and what compensation has been collected from the broken phones. If there is any money left over at the end of the pool’s term, it will be distributed among the participants who have not made a claim on the device.
Figures from mobile devices
What aspects would you consider when assessing the health of a mobile device? What qualities would an A phone have compared to a C phone? In the normal chain of mobile phone owners, they will tend to be more considerate of their audience and offer their own used device rating system based on what the public is willing to pay. As a result, rating systems can be relatively biased.
With TessaB blockchain technology, they will provide users with data from phones and provide information based on their condition and functionality. This allows users to make informed decisions about which phone is best to buy. This means that users are well informed about which phones are the best or in fair condition. There will be no more biased rating systems or ratings that can manipulate the actual condition of the phone and be more favorable to the seller.
Final Thoughts
Technologies are constantly evolving at a rapid pace, with the sole purpose of improving our lifestyles and making things easier for us. Blockchain in the mobile industry is likely to bring a lot of positives and as we can see, there can be a lot of benefits for users in the mobile phone secondary market. Not only will they be reassured that they are getting a quality second-hand product, but it also puts them in control.
As a result, the power no longer rests with the seller within the market. Buyers have more control over what they buy and are reassured that even though they know the device isn’t in full working order, they will get the best value for their money.
Jamie Costello is a freelance marketing and technology writer based in the United Kingdom. He uses his previous education and experience by collaborating with several agencies specializing in app development to collect his articles. When not writing, he enjoys reading and sports.
