Assume a fresh technology is developed that could allow many parties to transact a real estate deal. The parties celebration and complete information about timing, special circumstances and financing. The way these parties know they are able to trust each other? They'd need to verify their agreement with organizations - banks, legal teams, government registration and the like. This brings rid of it to square one regarding while using the technology to save lots of costs.
In the next stage, the 3rd parties are now invited to become listed on agreement deal and still provide their input whilst the transaction is being created in real time. This cuts down on the role of the middleman significantly. If the deal are these claims transparent, the middleman could be eliminated occasionally. The lawyers is there to prevent miscommunication and lawsuits. When the terms are disclosed upfront, these risks are reduced. If the financing arrangements are secured upfront, it will be known in advance that the deal will be taken care of and the parties will honour their payments. This brings us to the final stage in the example. In the event the terms of the deal and the arrangements happen to be completed, how will the deal earn for? The machine of measure would be a currency issued by a central bank, which means managing the banks again. If this takes place, banking institutions wouldn't allow these deals to get completed without some type of homework on their end and also this would imply costs and delays. May be the technology that attractive creating efficiency up to this time? I am not suggesting.
What is the solution? Produce a digital currency that isn't only as transparent because deal itself, but is in fact the main the deal. If the currency is interchangeable with currencies from central banks, the only requirement remaining is to convert digital currency in a well-known currency such as the Canadian dollar or the U.S. dollar that may be done without notice.
We've got the technology being alluded to from the example will be the blockchain technology. Trade may be the backbone from the economy. A key reasons why money exists is for the goal of trade. Trade produces a large number of activity, production and taxes for several regions. Any savings in this area that could be applied around the world would be very significant. As an example, look at the idea of free trade. Before free trade, countries would import and export to countries, however they were built with a tax system that would tax imports to limit the effect that foreign goods had for the local country. After free trade, these taxes were eliminated and more goods were produced. A small alteration of trade rules were built with a large impact on earth's commerce. The term trade might be broken down into more specific areas like shipping, real estate property, import/export and infrastructure and it is more obvious how lucrative the blockchain is that if it can save even a portion of costs in these areas.
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