Let’s say that a fresh technology is developed which could allow many parties to transact a true estate deal. The parties gather and finish the important points about timing, special circumstances and financing. How these parties know they could trust one another? They’d have to verify their agreement with third parties – banks, legal teams, government registration etc. This brings them back to where i started in terms of while using technology in order to save costs.
Next stage, the third parties are actually invited to participate the property deal and offer their input even though the transaction will be made in real-time. This cuts down on role of the middleman significantly. In the event the deal is that this transparent, the middleman could even be eliminated occasionally. The lawyers is there to stop miscommunication and lawsuits. If your terms are disclosed upfront, these risks are reduced. In the event the financing arrangements are secured upfront, it’ll be known upfront the deal will be taken care of and also the parties will honour the money they owe. This raises the last stage of the example. If the terms of the deal and also the arrangements are already completed, how the deal earn for? The system of measure has to be currency from a central bank, this means working with banking institutions again. In such a circumstance, banking institutions may not allow these deals to get completed without some type of due diligence on their end which would imply costs and delays. Will be the technology that valuable in creating efficiency as much as this aspect? I am not suggesting.
What’s the solution? Create a digital currency that is not only just as transparent because deal itself, but is usually part of the the deal. If this type of currency is interchangeable with currencies from central banks, the only requirement remaining is to convert the digital currency in a well-known currency much like the Canadian dollar or U.S. dollar which can be done at any time.
We have being alluded to from the example may be the blockchain technology. Trade will be the backbone in the economy. An integral reasons why money exists is perfect for the purpose of trade. Trade produces a large percentage of activity, production and taxes for various regions. Any savings in this area which can be applied around the globe will be very significant. For example, glance at the idea of free trade. Ahead of free trade, countries would import and export to countries, nonetheless they stood a tax system that would tax imports to limit the effects that foreign goods had around the local country. After free trade, these taxes were eliminated and others goods were produced. Obviously any good small alteration of trade rules stood a large impact on the world’s commerce. The word trade can be separated into more specific areas like shipping, property, import/export and infrastructure in fact it is more obvious how lucrative the blockchain is if it may save even a portion of costs of these areas.
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