Centralized vs. Decentralized business model: Which Is The best Model For Startups?

Centralized and decentralized are the two most popular organization structures, deployed by businesses around the world. Size and diversity, as well as goals, determine a great deal, the operational structure that most businesses end up deploying.

Understanding centralized business model

A centralized business model is common in areas where control is important. The model finds excellent use in areas where management or owners want to maintain full control of what happens behind the scene in an attempt to attain set out goals. Operational decisions with centralized organization structure are made at the top, with little or no authority delegated to lower levels of operation.

Likewise, entities deploying centralized business model lock up all profits or revenues generated from underlying operations. In this case, there is no distribution of profits or returns with other people or entities involved in the core business.

Centralized business model are synonymous with financial institutions whereby top managers are tasked with the responsibility of making key decisions and plotting a business course as well as operations. Lower-ranking staffs are only tasked with the responsibility of implementing whatever higher-ranking officials decide.

Similarly, any profits or returns generated are rarely shared with other people. In this case, the profits are retained and used in business expansion or the unveiling of new products. Conversely, profits are never shared with customers who might have played a pivotal role in ensuring a firm attained its financial goals.

Understanding Decentralized Business Model

A decentralized business model is synonymous with large institutions or companies whereby responsibilities, as well as decision making, are delegated. In this case, there is no central point tasked with the responsibility of making decisions.

Instead, a management team approach is applied. High levels of delegation with decentralized business structure see several individuals tasked with the responsibility of running the business and making crucial decisions.

Likewise, a decentralized business model is synonymous with diversified product mix. Returns generated are many at times shared with various entities or individuals, which make up part of the broader business structure.

YouTube, as well as e-commerce platforms Amazon and eBay, are a perfect example of entities that have perfected the art of decentralized business structures. All the revenues generated by the respective entities are many at times, shared between various parties.

YouTube shares a significant amount of ads revenues generated with content creators. By running adverts on individual accounts, Google ends up paying account owners a portion of the revenue it generates on running adverts on their accounts.

Amazon and eBay also rely on the decentralized business model to generate a significant chunk of their overall earnings. By providing a platform through which merchants sell items, the two platforms are entitled to a portion of profits that the merchants make on each product sold. Instead of merchants on Amazon or eBay ending up with all the revenues, they share accordingly as per the agreed terms.

Centralized vs. Decentralized Business Model: Startups Case Study

Startups are usually in the early stages of growth, where control is crucial if a business is to remain on course on a set-out vision. Conversely, centralized business model acts as an ideal operational structure for startups looking to make it in highly competitive industries.

Centralized business model allows startup owners to develop missions and visions as well as set objectives that managers and employees must follow. Having control of decision making ensures everything is done towards a focused vision.

The centralized business model allows startups to adhere to standard procedures and methods. Conversely, the organizational structure leads to a reduction in office and administrative costs. Given the small nature of the business or operations, decision-makers are housed in one location as there is no need to deploy more departments.

With centralized business structure, startups don’t need to spend much on office space or administrative expenses as everything is done from a centralized location. The structure also does away with the need to hire experts or experienced personnel at each level, as is the case with decentralized business models.

A clear chain of command reduces duplication of responsibilities that can trigger additional costs. Likewise, management maintains a better command overall subordinates as there is no duplication of duties or operations.

A centralized business model also allows startups to retain a good chunk of all the profits generated instead of sharing it with other entities or parties. Just is the case with banks and other financial institutions, startups deploying the centralized business structure maintain full control of the profits, which are, in return, used to accelerate growth through expansion and unveiling of new products or services.

Control and accountability are other synergies that startups deploying the centralized operational structure tend to enjoy. The fact that leaders are in charge of all major decisions ensure they retain control over all operations and development of underlying culture. Accountability, in this case, is usually of the highest order, thus ensuring every person operates at peak level.

Consistency is another key strength that centralized startups tend to depict. The fact that decisions are made by the same person or a group of leaders ensures they are made in a consistent and predictable manner. Consistency helps workers know what they can expect, thus averting frustrations that can emanate as a result of inconsistencies in changing decision patterns.

Centralized business model also tends to lead to higher levels of innovation as management clearly define the organization vision. In this case, employees focus their talent and energy to a given goal, which leads to improvements in work quality. Standardization of process enhances innovation while reducing wastage

The operational structure enhances innovation as everybody works towards a common goal. Similarly, it enhances better capital management by reducing costs of operation by averting redundancy. Quick implementation of decisions, as well as, improved quality of work are other synergies that startups tend to leverage with a centralized business model. Centralization is an ideal operational structure for startups, given the definitive advantages, it comes with.

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Centralized Versus Decentralized Business Models: The Best Model For Startups

Businesses deploy different operational and organizational structures. While some insist on centralized operational structures, others have opted for decentralized structures. Size, diversity, as well as the location and nature of products or services, continue to determine a great deal, the type of operational structure that established companies, as well as, startups deploy.

Why Centralized Business Model

Centralized business models are synonymous with small and medium businesses or companies, given their small operations as well as the target market. With this business model, decision making is centralized and the sole responsibility of few people, high up in management hierarchy. Chief executive officers, general managers, or business owners are often tasked with the sole responsibility of plotting the course the business takes as well as making decisions.

In this case, decisions are made at the top and disseminated to lower-ranking officials or staff for implementation. The lower-ranking staff does not play any role in the making of decisions when it comes to centralized business structures.

However, the business model also finds great use in large businesses or companies where the product line is limited, or operations must be maintained at close proximity.

Why Decentralized Business Model

Decentralized business model boasts of an operational structure with high levels of delegation. In this case, authority is delegated to various departments or individuals, all for whom participate in the decision making process.

A decentralized business model is synonymous with large organizations whereby operations cannot be managed from a centralized point. Likewise, the business model finds excellent use in companies with diversified product mix under the control of various departments. Multinationals with operations in various locations rely on decentralized organization structure for efficiency.

Centralized vs. Decentralized

Centralized business models have proved to be more effective whenever crucial decisions have to be made fast. The organization structure sees managers at the top making decisions and passing them down the hierarchy for implementation.

However, with decentralized business model, decision making has to follow a well spelled out procedure or process. Various heads at different levels of the management hierarchy must be involved in decision making. Likewise, the model leads to delays in the making of crucial decisions compared to centralized organization structures.

Likewise, Decentralized organization structures have proved to be more effective than centralized organization structures given the increased level of delegation. Different managers, in this case, are tasked with the responsibility of overseeing various operations. Likewise, specialization becomes the order, which ensures people specialize in things or operations they are good at.

In contrast, a centralized business model struggles to get the best out of employees as there is no freedom for expression. With a centralized business model, it becomes extremely difficult to leverage the skills or expertise of a large pool, given the condensed operational structure. The centralized organizations structure can become rigid, conversely curtailing growth given the inefficiency in leveraging the expertise of a large lake.

Centralized organizational structures have also proved to be ineffective, compared to a decentralized business model, especially in businesses with the potential to register robust growth. Centralized structures tend to curb employee suggestions and ideas crucial to unlocking new areas of growth or ways to enhance and improve efficiency.

A centralized business model can, at times, grow beyond the ability of corporate officers being able to plan effectively. The fact that operations, as well as decision making, are decentralized can present significant challenges down the line given the incorporation of divergent views even in areas where centralization is crucial.

Why Centralized Business Model is Crucial for Tech Startups

A centralized business model is by far the best operation structure for tech startups looking to ramp up growth while ensuring control over limited resources. The need to have control over everything happening, in a bid to accelerate growth, in startups, calls for a centralized structure.

Centralization makes it possible for high ranking official or startup owners to ensure startups remain on course in what they are supposed to do, to achieve underlying goals. With centralized business model, startup owners or high ranking managers are therefore able to design and ensure implementation of policies that have the potential to steer a startup in a strategic direction with ease.

Given that startups are usually in the initial stages of growth, centralized leaderships ensure only the right decisions are made regarding products, services as well as strategic direction. Clarity in decision making in the initial stages of growth is crucial if a startup is to remain on course in attaining its goals and achieving the much-needed growth.

A centralized business model leaves little room for error when it comes to plotting the direction that a startup has to follow. The business model ensures that the organization structure is clear cut and straight to the point. Basic processes, as well as operations, are, in this case, followed to the point given the clear instructions passed down.

Cost control is an important aspect when a startup is trying to find its ropes in a highly competitive industry. Therefore, startups with limited budget would find great use in relying on centralized organization structure.

A centralized business model ensures that high ranking officials have full control over budgets as well as products. The model also ensures there are no risks as there is no room for projects with the potential of eating lots of money being undertaken behind the scenes. The fact that employees must ask permission to make expenditure in a centralized business model ensures that a firm does not overspend on any available cash.

A centralized business model enhances coordination in a startup environment as decisions are made at a higher level. In this case, it becomes easy to ensure that everyone in a startup acts towards a common goal, thus saving on time and resources. A lack of alternative voices ensures there is no distraction with priorities and tasks at the forefront.

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Codius: A More Efficient Approach To Smart Contracts

The development of smart contracts brought about a lot of excitement because the technology offered the ability to automate a variety of transactions that would previously not be possible to automate. However, the complex nature of smart contracts made them difficult to implement and thus they remain an underexplored aspect of blockchain. However, all that might change thanks to a new solution called Codius.

Codius is an opensource hosting platform that is designed to facilitate easy uploading of a program. It is built with newer technologies in mind such as smart contracts and decentralized apps and peer-to-peer hosting and these focal points are the reasons why it is such a significant development as we shall discuss later. For now, lets first look at how it traverses the 3 segments.

• Smart contracts

The premise behind smart contracts is that the terms an agreement between two or parties can be written into enforceable code even when there is barely any trust between the parties. Codius makes it possible for a third party to act as the witness, thus upholding the contract’s integrity.

• Decentralized apps

Codius aims to help improve the attractiveness of decentralized apps by enabling their interaction with other decentralized apps. It also facilitates interaction with distributed databases such as the Bitcoin and Ripple networks.

• Peer-to-peer hosting

Digital services require hosting and constant maintenance. When there is a lack of maintenance, the service stops functioning. Codius helps to shift towards the peer-to-peer approach and this plays an important role because it enables the service to retain full functionality as long as it still has an active user.

Codius also aims to eliminate some of the problems that have previously held down the above-mentioned segments. One of those key segments is the fragmentation that exists in the blockchain landscape. For example, different platforms such as Ethereum and the solutions it offers are coded using a unique programming language.

A person or organization that wants to embed smart contracts into their business would thus have to learn that language or use the services of a programmer that understands that programming language. Codius is based on Javascript which is a more common and easier programming language. It is also designed to accommodate other programming languages, thus eliminating some of the barriers that have held back blockchain-based solutions such as smart contracts.

The scalability issue

Ethereum is currently the most popular platform for smart contracts and decentralized apps. However, it is not properly equipped for scalability, there is the programming language issue that limits integration with external data and it is considered a bit pricey as a solution for smart contracts. Interestingly, Codius initially made its debut in 2014 but it went dormant. It has been revived after its creators saw the need to overcome the above-mentioned issues and that is why it appears to be well-thought-out. Its comeback was also heavily supported by the fact that Interledger also exists.

Codius' open-source nature allows programmers to use the most popular coding languages to create smart contracts. It also hosts them at a significantly lower cost than the Ethereum platform. The fact that it can be used with most programming languages out there means that services built on this platform will have an easy time upgrading to especially when they need to scale up their operations.

Ease of operations

Codius is also a more attractive offering compared to other blockchain hosting services for numerous reasons. It is extremely fast, making it attractive to services that need rapid speeds to facilitate good service delivery. Codius is also designed to communicate with devices or services that are connected to the internet and this makes it appealing to projects that focus on the Internet-of-Things.

As noted earlier, Codius is not characterized by code restrictions like some of the similar projects out there, thus offering more flexibility. It also has an extra advantage in that it has an inbuilt payment feature. This allows cross payments between applications in the Codius ecosystem.

How Coil plans to use Codius

If you are not familiar with Coil, it is a Ripple-based internet monetization platform that is aimed at creating a new way for content creators to make money from their content. It is therefore interesting to content creators because it will potentially allow them to make more money from their content with more ease and also without having to look for sponsors. It also aims to benefit content consumers by providing access to all the monetized content on the internet through a $5 monthly subscription.

So why is it a big deal that Coil will also be using Codius? It turns out that Coil is one of the services that have recognized Codius’ potential as a true solution in providing proper blockchain-based services and thus the decision by its developers to jump on board. Coil plans to take full advantage of the built-in payment feature to drive its monetization strategy. It also recognizes the higher efficiency of the smart contracts provided by Codius.

The relationship between Codius and Ripple is a match made in blockchain heaven

Ripple happens to be one of the most notable blockchain-based solutions especially due to its heavy focus on providing enterprise services for the financial and banking sector. Ripple is also one of the solutions that have identified the potential that Codius has to offer and thus its decision to vet the platform as a good smart contracts solutions provider. Codius is surprisingly made using some of the architecture that was used to create the Ripple platform. Ripple also created Interledger, which is an important aspect of Codius operations.

Ripple stands to gain significantly if Codius goes mainstream. For example, Ripple could use Codius-based smart contracts to enhance its services. We could see some of those benefits trickle down into key industries such as the banking industry and other sectors such as the financial derivatives market.

Codius is currently a big deal for the blockchain community and for good reason. Blockchain solutions such as smart contracts have not really taken off due to the inefficiencies. However, Codius presents an opportunity to overcome those barriers and perhaps even boost the technology to the anticipated heights.

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What Are Micropayments? How They ARE Fueling Digital Economy

Micropayments are a common phenomenon and a key driver of the fast-growing digital economy. Simply put, they are electronic payments that involve small amounts of money, usually less than a dollar. Mobile apps, as well as e-commerce stores and subscription services, are some of the forces that continue to fuel the micropayments ecosystem.

Understanding Micropayments

While micropayments refer to small amounts of payments, the definition or size differs from one payment processor to another as well as business in question. Some payment processors or businesses fond of handling transactions in the hundreds or thousands of dollars recognize payments below $20 as micropayments.

Visa is a popular payments service provider that facilitates micropayments as well. The payment provider classifies anything less than $20 as a micropayment. PayPal, another popular electronic payment platform, classifies anything less than $10 as a micropayment.

The emergence of the digital economy continues to drive the micropayments ecosystem, given that traditional payment systems such as debit and credit cards are not effective in handling small payments. Transaction fees are some of the reasons why people are increasingly shunning credit and debit cards when it comes to micropayments.

The fact that micropayment systems have diminished transactions costs or fees to a few cents is another reason why people are shunning traditional payments systems for emerging electronic payment systems

Micropayment Requirements

Micropayments entail the following attributes

• They involve small amounts (less than $20)

• They involve large volumes in a given payment platform

• They involve online payments

• It involves small transaction fees roughly 3% of the transaction

• It leads to instantaneous payments

• It is reliable and available 24/7

How Micropayments Work

The digital economy, whereby everything is carried online, has given rise to numerous micropayment systems designed to handle small payments in different ways. A popular format involves online sellers or service providers integrating a third party micropayment service. The service provider will, in this case, collects, stores as well as distribute small payments on behalf of the seller or service provider.

Consumers, on the other hand, must open an account with any of the micropayment service providers to be able to make payments. Whenever customers make micropayments, they are stored in a digital wallet managed by the micropayment platform provider until they accumulate to substantial amount consequently transferred to the recipient.

Micropayments Example

Upwork is a popular freelancing site that allows writer’s around the world, to complete various tasks online and get paid. A publisher or a writing company may hire a writer to work on a given editorial or newsletter. The two must first agree on the payment, which could be $2 for every hour that the writer is working on the project.

Upon completing the project in say 3 hours, the publisher or writing company would have to pay $6 to Upwork, which handles the payment on behalf of the writer. The micropayment platform, which in this case is Upwork would collect its fees and then credit the remaining amount in the freelancer or writer’s digital wallet account.

The writer will continue working, get paid, and the micropayment platform continues handling the payments on behalf of the writer in the digital wallet account. Once the amount in the digital account reaches a substantial amount, say $100, the writer would be able to withdraw the amount to his or her bank account.

Micropayment Prepaid Systems

Prepaid systems are also at the heart of micropayments in the fast-growing digital economy. PayPal is a popular payment system that continues to fuel micropayments. The payment system allows users around the world to set up accounts, credit some money, and use it to make micropayments in various platforms.

For instance, PayPal is a popular payment system in e-commerce platforms such as eBay and Amazon, whereby users are able to buy items and make payments of as little $1. Once the payment of say $7 is made from PayPal to eBay or Amazon, the same amount is deducted from the user’s digital wallet and used to complete the transaction.

Micropayments Uses

Gaming

Micropayments have become extremely popular in the multi-billion gaming industry. In most gaming platforms, gamers have to part with small amounts of money to activate new levels in a game, get extra lives, or even acquire additional tools or weapons.

While micropayments in the gaming business account for millions of dollars, most of it comes in small amounts and accounts for a small base of users.

Content Payment Online

Micropayments are a common phenomenon when it comes to paying for content online. For instance, one may have to part with less than $5 to read an article or a book online. In addition, it is common to have to pay small amounts to download or upgrade an application.

Similarly, some musicians require people to part with some amounts to download their music, especially where it is proving to be difficult to convince people to pay for a subscription service.

Micropayments in incentivizing people

Some local governments around the world are incentivizing citizens every time they use a garbage bin to dispose of waste. Similarly, some insurance companies have turned to micropayments to encourage their clients to stay healthy. Likewise, every time an insured goes for a walk or a run or cycles to work, they are paid small amounts that accumulate over time.

Blockchain

Micropayments are also increasingly gathering pace in the blockchain sphere. A good number of blockchain networks are increasingly rewarding users who take part in validating transactions in the network.

Instead of linking the payments to the native cryptocurrency, the blockchain networks have opted for standard currencies as a way of encouraging people to come in numbers and participate in transaction verification processes.

Security and Fraud Detection

Micropayments are also being sued to curb fraud and enhance security in some popular websites. If accessing a website costs a fraction of a dollar, a normal user would be able to access the website and exit with ease.

However, hackers or people looking to scrap or propagate a fraud must make thousands of connections to complete a particular operation. In case of a pay wall that requires one to pay to access a website, making thousands of connections at a go could prove to be extremely expensive. Conversely, such suspicious characters refrain from targeting such websites.

Supporting someone or a course

Micropayments are also proving to be effective tools for pooling small amounts of money from a large pool of people. For instance, micropayments have been used to support a course i.e., someone in need of financial aid or donating money to support a campaign such as global warming awareness.

Bottom Line

Micropayments are simply electronic payments made up of small amounts of money. Such payments are becoming an integral part of various industries, from gaming to e-commerce, and continue to fuel the digital economy.

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What is a Healthy Lifestyle?

American lifestyle and their diets have been criticized for being unhealthy. Most American diets surpass the recommended dietary limits (Mack et al.,2009). Obesity is leading threat. Along with various other serious problems such as heart attacks, liver diseases, respiratory issues. (Shaffer & Brenner, 2009). Healthy living is the adoption of healthy lifestyle, or modifying your lives by incorporating healthy practices. It infers that the individual should physically, emotionally and spiritually accept healthy choices. Healthy eating is the stepping stone of healthy lifestyle. Avoiding carbohydrates and fats; and adding more produce is a beginning to accept a healthy lifestyle. But it is not the only way to enhance lifestyle. Incorporating physical activity, getting more fresh air, avoid smoking, among other things; all promote healthy lifestyle (Baghaei et al.,2009).

Healthy lifestyle program

Risky behaviors are increasing day by day. The main contributors to this include poor nutrition, tobacco use and lack of physical activity. Oddly enough, these are the biggest contributors of chronic disease linked to morbidity (Hale et al.,2014). This trend negatively impacts healthcare spending. Healthy lifestyle researchers recommend that programs which promote the adoption of better health are essential to motivate individuals to accept positive changes in their lives. Such programs believe in healthy actions and are supported by governments for support, funding and resources (Fabius et al.,2013).

Healthy lifestyle programs are based on prevention. Such programs have structured approaches and use resources such as rewards and motivational interventions projected to promote health and fitness. For instance, rewards and positive intervention can help individuals lose weight. These healthy lifestyle programs can differ depending on the its objectives. Some programs require face to face interaction; whereas other can programs use online, phone or supplementary data pamphlets. Apart from the customizations, the healthy lifestyle program needs to keep in mind its targeted audiences as well as their present health risks (Smith, Straker, McManus & Fenner,2014).

Most common healthy lifestyle programs are the weight loss programs that integrate dietary analysis and types of exercises. They are reinforced by explaining weight loss benefits for its participants. Such programs are mostly expensive for the government to support. Hence, require public support.

Weightwatchers for instance, is a commercial program which aids with weight loss. Some interventions can be cost‐effective and are necessary for the society; such as no smoking, and are promoted by the health sector. Though, most government programs being budget friendly lack proper and effective interventions. In comparison to it, the commercial programs are extremely affective because they want more customers to join them. The interventions are user friendly but only a small population benefit from them (Cobiac, Vos &Veerman, 2010).

How are Healthy Lifestyle Programs Funded

Healthy lifestyle programs are becoming a necessity with time. They are an easy access health treatment and address different age groups. Some health programs are government funded but they are mostly targeting a given objective like “Quit smoking” or “Control obesity to prevent heart disease”, but very few programs target complete healthy lifestyle adoption. The major reason is that the government lack funds and resources to get health experts, along with other specialists on board (Morgan et al., 2014). Companies are also involved in funding health lifestyle programs. Companies providing health insurances want their employees to take a health assessment questionnaire once or twice a year; to help them to keep a tab of their activities. These companies also have workshops and seminars throughout the year embroiled in their healthy lifestyle adoption programs. Many people also pay for healthy lifestyle programs. Human beings need check and balances and in present times more and more people are actively opting for such programs (Hebden et al.,213).

Prevention health programs can be web based, phone app or even workshop interventions. The mobile phone-based interventions have also gained momentum and has promising results for a wide population reach. The web-based programs are becoming increasingly popular as such programs have lower costs and can be funded by government, private agency or even a corporate. These programs have a range of activities from giving general information to collaborative health coaching or professional health support groups. There are other channels through which these programs are carried out by engaging people for initial engagement and retaining them such as newsletters, emails, mailings, posters, events at health fairs or even walks (Arena et al.,2013). Though it can be said that multiple channel communication is always most engaging. Financial enticements always work in encouraging people to opt for better lifestyle choices. encourage continued engagement. Yet, it takes more than financial gain to keep the population engaged in long term commitment. Hence, the effects of such programs are more beneficial when the person is paying for it out of pocket, hence he would take it much seriously. Or if they are company funded, then to the employee feels a sense of responsibility to follow a healthy lifestyle pattern and is repeatedly encouraged by company health programs (Goetzel et al.,2014).

What are the Benefits of Healthy Lifestyle Programs?

Preventive health programs only work if they have been thoroughly followed. They are a must for our society where the rate of diseases is increasing day by day. Poor health choices mean more sick people, which can adversely affect the whole society. The healthy lifestyle programs are an essential medium for custom-made healthy lifestyle promoting interventions. When individuals are part of such programs, they can keep a tab n their activities and are continuously motivated by the continuous information. It becomes easier for them to make lifestyle choices and make their health better when they know that they are being assessed for their health choices (Fabius et al.,2013).

The insurance companies offer their benefits to a large number of clients. If they have clients with poor health, they have to pay for their medical bills and it is financially straining for them. Hence the insurance companies, whether its through symposiums, workshops or event promotions; highlight the perks of keeping good health to motivate their clients. The companies who provide such insurance to their employees, also feel it their duty to advocate their employees through such programs to take care of their health (Goetzel et al.,2014). Such companies can’t afford to many employees with health risks for which they will have to pay. Care management interventions aid the overall health of the company along with its employees (Fabius et al., 2013).

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Preventative Care

Preventable diseases are a burden on the economy. In the U.S., the cost of four vaccine-preventable diseases from 50 to 65 years of age is $26.3 billion (Paavola,2017). 7 out of ten deaths in U.S. are a result of chronic disease, while half of the country's population suffers from long-lasting illnesses, comprising of diabetes, AIDS, heart disease, cancer, etc. Therefore, more emphasis should be given to preventive approaches to health care (PublicHealth, 2020). Preventive care is a health service that protects from health emergencies. It is also known as prophylaxis and comprises of yearly physicals, well-woman appointments, and dentist appointments. The majority of preventive medicines include vaccinations, allergy medicines, and contraceptive pills. Also, screenings for cancer, diabetes, cholesterol are effective preventive care techniques. The Healthy People program conducts routine cardiovascular exams saving 10,000’s of adult lives annually. The vaccines also help 42,000 children yearly (PublicHealth,2020).

The primary purpose of preventive care is to assist people to stay healthy and stop diseases from becoming calamitous. It helps to keep health care expenses low. Preventive care also keeps people productive, allowing them to continue working even in their senior years. Most retired people are forced into bankruptcy due to healthcare problems. The preventive health care plans follow a pattern by looking into genetic tendencies, environmental factors, lifestyle choices, and disease agents. These factors help in the understanding of the probability of getting the disease and preventing it. Yet, the neglect of preventive care is evident by looking at the growth of chronic diseases and resulting deaths (Cohen et al.,2008).

There are many approaches to disease prevention. Some prevention strategies are simply based on creating awareness like the prevention of smoking (Balas et al.,2000). Others are regular screening or checkups, necessary to detect risk factors for disease. By understanding the causes of health issues, under preventive health, the idea of a healthy and balanced lifestyle can be propagated. People can be pushed into keeping in touch with their healthcare provider to get regular immunizations and boosters. Similarly, by understanding the underlying causes of the spread of sexually transmitted diseases, proper preventive healthcare practices can be used to avert it. At times, these procedures are very expensive and hence makes the preventive healthcare debatable (Lin et al.,2004).

Racial representation, geography, sex, and socioeconomic status play an important role in getting proper to prevent healthcare. There has been growing disparities in preventive healthcare access around the U.S. 40% Hispanic adults, 23 % of black and 18% of white adults don't even have a health care provider, making the racial disparity quite evident. Having a devoted health care provider is the key to get tested and prevent diseases. Geography is also subjective in getting preventive healthcare. Childhood immunization is only 63%, West Virginia, whereas 84% in Maine. To counter such disparities in disease prevention, it is essential to provide high-quality, inexpensive care that will work for people (Tuckson & Blumenthal,2016).

Benefits

There are many benefits of preventive healthcare, majorly being the objective of improving lifestyles. Along with that, regular checkups help in the early detection of diseases to avoid imminent problems in the future. Such as, to high blood pressure, it is necessary to get checked regularly. High cholesterol levels and blood sugar can also be determined at early stages through simple blood tests. Cancer screening testing at the early stages stops it from getting it worse by getting treatment on time. Similarly, genetic testing can help determine if some women have a higher probability of getting cancer. Sexually transmitted diseases can also be prevented if proper attention is giving to underlying causes, and they are addresses on time (Balas et al.,2000).

Another significant benefit of preventive health is knowing to identify bodily changes that aren't normal, such as a body lump, high fever, abrupt weight loss or weight gain, random body shivers, skin changes, or any other symptoms that don't go away. By understanding that something is different from the body, it is possible to address the underlying issues without the problems getting worse. Also, preventive healthcare costs are comparatively lower than treatments afterward. Prevention potentially creates a longer and healthier lifespan and avoiding morbidity (Kolstad & Kowalski,2012).

Current Market Trends

75% of today’s healthcare costs curtailing from long-lasting diseases can be avoided by preventive medicine and can become “the new norm.” It can be done if proper attention is given to understanding genetic makeup and biology, keeping in mind treatment pathways and cost of care. Preventive healthcare programs emphasize genetics to prevent chronic illness, such as breast cancer, heart disease, or diabetes. The global preventive healthcare technologies also stress on making the public aware and improving government policies. The preventive care cost reduction plans and low maintenance technologies are also part of the agenda. The healthcare market is more centered around screening techniques, effective vaccines & feasible monitoring. Fifty percent of the market corresponds to the North American region. The preventive care outcomes are much more optimistic than before due to rising consumers' awareness in embracing prevention and more informed about healthy lifestyle, genetics, or environmental causes (INN,2020). Governments and healthcare professionals are also becoming more and more aware of cost-effective healthcare systems, which can readily be accepted by moving away from a traditional reactive model to a preventive healthcare model. This shift has opened up more research opportunities to find innovative solutions and treatment options (Vaidya, Partha & Karmarkar, 2012).

Future Trends

Preventive care approaches are modifying and continuously evolving with time. House calls for seniors is one case of modified preventive care. Similarly, urgent care centers, online medical advisors, mobile medical clinics all are gradually becoming more acceptable. The complexes of the health care system are still evident, yet the awareness has increased several folds as there are more and more stakeholders in preventive care (Tuckson & Blumenthal,2016). The global preventive healthcare market is growing at a 9.5% CAGR. Personalized medicines section will have the largest share of early screening tests in the preventive care market. Affymetrix, Inc., Third Wave Technologies, Qiagen, and Inc., are key players in the personalized medicines market. Electronic prescribing will outgrow CAGR. North America is and will be the leading the preventive healthcare market (iHealthcareAnalyst,2019).

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How Does Hyperinflation Work?

Inflation is a common occurrence in an economy and it is characterized by an increase in the value of goods and services. Governments manage inflation through various measures but there is one type of inflation called hyperinflation that is one of the worst nightmares for any economy.

Hyperinflation can best be described as runaway inflation which basically means inflation levels that are usually too high that the government has a hard time managing it. Hyperinflation is usually characterized by the loss of value of a country’s currency to extreme levels. Venezuela and Zimbabwe are some examples of countries where hyperinflation has become such a huge problem that locals prefer to use foreign currencies to conduct their day-to-day purchases.

Causes of hyperinflation and its characteristics

Inflation levels cross over into hyperinflation territory when the level of inflation in a country rises by 50 percent in the span of one month. In other words, it occurs when the prices of goods and services in a country go up by 50 percent. The main culprit behind hyperinflation is usually a government’s decision to print money so that it can pay off its debt. On a side note, this is why countries cannot just print money in the hopes of using that money to clear piled up debt.

The printed money has to get into circulation and this is where things start going wrong. The release of more money into the economy causes a rise in the price of commodities and services, thus causing inflation to rise above the normal levels. The mistake therefore occurs when the government keeps printing and releasing more money into the economy rather than implementing tighter money control to prevent the occurrence of hyperinflation.

Zimbabwe is one of the countries whose hyperinflation is largely attributed to the government’s decision to solve the country’s financial problems by printing more money. The very act of printing more money and releasing it into the economy creates an oversupply of money. Consequently, the prices of goods and services increase, thus setting the inflation in motion.

One of the key characteristics of hyperinflation is that people usually know that they will pay more for goods in the future and so to avoid that, they purchase bulk products before inflation worsens. The idea behind this bulk buying is that they can avoid paying more for the same goods in the future. Unfortunately, this behavior tends to exasperate the situation even more. When people hoard goods, then the market for those goods is hit by a shortage and when there is more demand than supply, then suppliers tend to take advantage of the situation by increasing the price of their products.

One of the most unfortunate things about hyperinflation is that it negatively affects people's life savings. Picture this scenario. A man works hard to earn a million dollars. If the country is hit by inflation and the value of the dollar loses value by half due to hyperinflation, then the million will lose about half of its value. That person cannot afford as much as he would have prior to the hyperinflation. That means people end up losing a significant chunk of their life savings and that can have serious consequences on people’s livelihoods.

When money loses value as explained above, people lose trust in the system and they no longer deposit money in their bank accounts. This, in turn, means banks start going under and the situation is also made worse by the fact that their loans also lose value when their economy is hit by hyperinflation. At the end of the day, the very activity of printing more money and any other measures that cause hyperinflation are like a snake eating its own tail. The money released into the economy ends up being useless.

The velocity of money and its relationship with inflation

The velocity of money is a term or concept that is used to describe the pace at which money circulates in an economy or the rate at which companies and individuals spend money. In other words, it is directly related to how the banking system operates. At the helm of every economy in the modern world is a central bank that regulates the flow of money in an economy.

The goal of the central bank is to facilitate a decent velocity of money in the economy. In this case, the velocity should be fast enough to facilitate less friction in the availability of money in an economy. This allows people to conduct business and thus generating value, creating employment and other benefits that all contribute to economic welfare. It should also not be so slow that it makes it hard to conduct business. Remember that inflation encourages hoarding and discourages people from putting money in the bank, therefore pushing towards hyperinflation.

An economy with a high velocity of money is at a higher risk of hyperinflation because it means money is too available and thus the price of goods and services is likely to go up. When a central bank manages to control the velocity of money, then the economy is better equipped to avoid uncontrollable inflation than an economy with a very high or very low velocity of money.

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The Launch of Xumm

The demand for revised technology is growing by the day and particularly in the banking sector. People want to carry out transactions right from the comfort of their locations. This is the reason why XRPL Labs has launched a banking application app; Xumm, which makes use of Ripple’s native token known as XRP. This application, which has attracted close to 3,700 active users since the time of this writing allows them to access contact information, Fiat currency management, and transaction tracking among other traditional banking services.

Wietse Wind, the XRPL Labs lead developer of Xumm,

Wietse Wind is the brainchild behind the development of the banking app. Its development was triggered by his everyday drive of turning complex software into simple products. The drive began at the age of sixteen years during his university years at the University of Amsterdam. The urge to become an entrepreneur-led him to register his company; Internet Publications, which was later rebranded to iPublications.

The company aimed to deliver projects on time, within budget and in a more efficient way. This is how Xumm has been birthed. The Dutch developer says that the Xumm banking application is a simple but hardy way of explaining how crypto has taken control over the traditional monetary system. It is an invention in the industry and step nearer to becoming a self-sustaining ecosystem

So what exactly is Xumma and what are its advantages?

Xumm’s design is aimed at allowing spend multiple currencies co-currently, which could be dollars and Euros. This goes hand in hand with the use of a digital asset – XRP. It was launched at XRPL Labs and as one of the Ripple’s Xpring initiatives. Some of its advantages include:

• Allowing users to open a wallet account without the need for intervention of a third party.

• The application has an easy interface, which makes it stress – free without the need for advanced knowledge of crypto-wallets.

• It is a convenient way of connecting with businesses for fast payments and in real-time. Users can easily interact with consumers; thanks to XRP

According to Wind who is also the developer behind the development of other products including XRParrot and XRPTipBot, everyone should have access to the application. However, it is currently available for Android users who must download it from a beta version.

The app was available for Apple devices (iPhone and iPad). However, it was rejected after the first run and the users of these devices must have cameras on them. Nonetheless, Wind explains that even for those who can access it, it is a requirement that they send just an insignificant amount of XRP to the app to avoid occasions of bugs.

Android users report some bugs with the application

This was unfortunate after just a few hours of testing which turned out successful. Many users complained of not being able to access the start screen from some places in the app. The app got stuck whenever they opened it on their phones and this made it hard to return to the main menu.

However, despite all these mischances, the community was generally happy with the app even as Wind promised to have the bugs fixed the soonest. He also explained that the users couldn't share the app with friends and family through screenshots.

‘’People can’t take a screenshot of the XUMM app. While annoying when sending a bug report or suggestion, we did this on purpose for security reasons: when your phone is compromised we want to prevent apps from sniffing your secrets/account/balance’’.

The consideration of launching a paid account of the application, “Xumm Pro”

With the reported success of the Xumm, XRPL Labs is assessing the introduction of a Xumm Pro. Through his Twitter account, Wind explained they were contemplating this possibility. He said, ‘’Dear #XRPCommunity 👋 With the release of XUMM approaching, we at @XRPLLabs are thinking about our future (XRPL 🎉 – don't worry). We are contemplating the possibility of introducing “XUMM Pro”. That would allow us to roll out even more features (time, infrastructure, etc.)’’

Nothing much will change just an addition of new features that would offer added value to the users. Surprisingly, a recently conducted survey showed that 36.7% of the community was in full support of the Xumm Pro while 30.9% claimed they would still support non – paybale version. Another 22.4% would at first support the new version just to have a feel of its innovation and modernization.

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What Are Central Bank Digital Currencies?

The past decade brought with it some interesting developments and perhaps the most notable disruptor that hit the world by storm was digital currencies, more commonly known as cryptocurrencies. Also just as important is blockchain, the technology that supports their existence.

Unfortunately, while the idea of cryptocurrencies seemed like the next big step to most, it was not so attractive to the traditional finance fraternity. This was mainly because cryptocurrencies are decentralized in nature. This means that they are not controlled or largely held by a centralized authority the way central banks traditionally control fiat money. Cryptocurrencies would thus render central banks obsolete.

Despite their attractive and revolutionary nature, cryptocurrencies also demonstrated some disadvantages. They are not evenly distributed and their prices are too volatile due to their speculative nature. However, their other characteristics such as rapid transactions thanks to blockchain makes them quite attractive. These factors brought up the idea that banks can take advantage of the power of blockchain and cryptocurrencies without necessarily having to compromise.

The concept of central bank digital currencies

The advantages, as well as disadvantages of cryptocurrencies, brought about the idea that central banks can also leverage the concept to bring more efficiencies to the banking industry. The idea is that central banks can introduce a more efficient system that can facilitate faster and more secure management and transfer of funds between banks.

Since blockchain is immutable and highly efficient, transactions would be highly secure and fast. The traditional banking system is quite slow and inefficient by today’s standards, so is arguably due for an upgrade. Transactions are quite slow and the current systems for handling cross-border transactions are quite expensive.

That is why it takes between hours and a few days for the money to get to a personal account when one person sends money to another person in a foreign country. However, central bank digital currencies would be built on a closed blockchain system that is will only be used by banks.

How the central bank digital currencies can be executed efficiently

Although central bank digital currencies are yet to become a thing, they make a compelling argument on why central banks across the world should consider adopting them. As far as the execution is concerned, we have to consider that banks still need to be in control of the flow of money in an economy, but at the same time, they need to take advantage of new technologies to boost efficiency.

Perhaps the best approach would be to have the best of both worlds. Banks can develop blockchain-based digital currencies that are pegged on the value of fiat currencies. For example, in the U.S the Federal Reserve would have a specific amount of a digital dollar based on blockchain. This digital dollar would then be distributed to banks, specifically for carrying out online transactions or cross border transactions and remittance.

The above approach would eliminate the need for a clearinghouse and also reduce the time and costs of transactions, including cross border transactions. At the same time, the banks can also allow the continued circulation of physical fiat money into the economy. In a way, this would be a hybrid integration of the traditional approach and the blockchain-based approach.

Why the hybrid approach makes a lot of sense

There are obvious reasons why the hybrid approach would make a lot of sense for the central banks. First of all, it does not remove an already existing system that is deeply rooted in the economy but would rather focus on improving the existing system. This is a more reasonable approach than carrying out a massive overhaul of an entire system from the ground up. It is more of taking an already existing and working system and introducing a more efficient way of running that system.

It also makes a compelling argument for the central banks because it also focuses on key areas such as facilitating faster banking, more secure technology and at a lower cost than the traditional system. At the same time, central banks will still have control since Central Bank Digital Currencies will be centralized.

Unlike regular cryptocurrencies that are decentralized and whose prices are solely dependent on market forces such as demand, central bank digital currencies are supposed to be made by central banks. Their supply is thus determined by central banks and they are also supposed to be used for banking purposes.

What makes central bank digital currencies different from electronic cash

Electronic cash mainly exists through online wallets, debit cards, and credit cards. These means still operate on fiat currencies and that means that they still subject to a varying degree of dangers such as hacking or even high transaction fees. Meanwhile, central bank digital currencies would be operated on blockchain technology which is immutable and highly secure.

Electronic cash mainly focuses on consumers although there are electronic cash transfers that still take a considerable amount of time. Meanwhile, central bank digital currencies would allow banks to conduct business more efficiently and effectively thanks to blockchain technology.

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How To Handle A Financial Crisis

There is a wise saying that where there is fire, there is smoke. Market experts across the world have been growing more concerned about the direction of the economy. What’s even worse is that the coronavirus has demonstrated just how easy it is for an economy to be affected by factors that may be out of control, and how that may expedite an economic downturn.

We have already started to witness signs of a global financial crisis on account of the economic downturn caused by the coronavirus. Factories have been forced to pause production so that people can quarantine and that puts the economic output in the red. Negative economic growth is already creeping in and governments across the world have resulted in additional borrowing to try and support their economies and currencies have also been losing value.

The good thing is that past financial crises and economic recessions have taught us a lot about how to manage our economies so that we avoid past mistakes that fueled those crises. We have also learned how to react or handle a financial crisis to bring an economy back on its feet. Here are some of the solutions that governments can turn to in case of a financial crisis.

1. Adjust the fiscal policy

In case of a financial crash, the central bank in that economy can adjust its fiscal policy so that it can support the economy and facilitate recovery. The central bank can implement changes with the goal of boosting demand in the market so that it can push economic growth in the right direction. One of the ways it achieves this is by lowering interest rates or even pumping more money supply in the economy.

The government can also implement fiscal stimulus measures such as lowering the tax rates and also spending more on its part. Fiscal policy adjustments usually cause inflation but this is often to the government’s advantage because it ends up paying less to pay off debt.

2. Currency devaluation

This is a common economic correction strategy especially in times of financial crisis. Currency devaluation essentially means reducing the value of a currency. There are numerous reasons why a central bank may turn to currency devaluation as a weapon against a financial crisis.

• Currency devaluation helps to boost exports. When a country devalues its currency, foreign buyers can purchase local products for a cheaper price than they would have prior to the devaluation. This makes the country’s exports more attractive, thus boosting its GDP, or in other words, boosting economic growth.

• To lower the country’s outstanding debt. A country may lower the value of its currency so that it can pay less of its debt owed. Devaluing a currency means that the country will pay a smaller amount over time than what it was initially supposed to pay before the devaluation.

• To achieve a better balance of payments. When a country has a higher amount of imports than its exports, then it has an unfavorable balance of payments. Achieving a better balance of payments tends to reduce trade deficits and thus helping to keep public debt within reasonable and safe levels.

3. Implement deflationary measures

An economy may suffer a financial crisis when inflation levels rise too much. Zimbabwe is a good example of a country whose economy has been ravaged by hyperinflation after the government pumped too much money in the economy. Some of the measures that central banks can implement to reduce inflation include raising taxes to lower the government’s dependency on borrowing and cutting down on government spending.

Note that deflation tends to slow down economic growth, which means that deflationary measures may also take a toll on the economy. This is why deflationary measures are not necessarily meant to be used for long durations but are better suited as a temporary fix to restore balance in economic performance. The economy still needs to achieve growth, which in turn leads to more job opportunities.

Why are the above measures effective in helping an economy to recover after a financial crisis

The main goal of the above measures is to facilitate economic recovery in the event of a financial crisis. One of the reasons why the above measures are effective is that they help undo some of the problems that worsen the economic situation. For example, measures such as currency devaluation may help to restore to breathe new life into exports and subsequently help restore jobs in the export sector.

In fact, the main characteristic of a financial crisis is that one problem keeps multiplying into other problems and the spiral continues. For example, the coronavirus has forced many businesses to shut down because there is no demand and subsequently, many people have already lost their jobs. The economic slowdown is being felt even in the banking segment and with no earnings, people cannot spend and thus the government loses out on taxable revenue.

The solutions for a financial crisis are tailored to reverse the downward spiral by stimulating the economy. Central bank policy adjustments help, to encourage investors to regain their activities. Borrowing is encouraged so that individuals and people will have resources to pursue business opportunities. Basically, the goal is to encourage investment and to encourage demand in the market which leads to more opportunities including job creation. This way, the effect is compounded in a positive manner that facilitates more economic health.

There are other measures that may help countries to recover from a financial crisis or to avoid one altogether. Irving Fisher introduced some interesting ideas in the Chicago Plan after the 2008 financial crisis. His economic model suggested the various measures such as a massive reduction of public debt and tighter control over the major factors that cause fluctuations in the business cycle. Fisher also suggested maintaining low levels of private debt and also doing away with bank runs. His suggestions are particularly aimed at sealing some of the cracks in the system which over time compound into bigger problems that cause a financial or economic crisis.

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