Let’s say a new technology is developed that might allow many parties to transact a property deal. The parties meet up and complete the details about timing, special circumstances and financing. How will these parties know they could trust one another? They would have to verify their agreement with third parties – banks, legal teams, government registration and so on. This brings them back to square one when it comes to using the technology to truly save costs.
Within the next stage, the 3rd parties are now actually invited to join the true estate deal and provide their input as the transaction will be blockchain created in real time. This reduces the role of the middleman significantly. If the offer is this transparent, the middleman could even be eliminated in certain cases. The lawyers are there to avoid miscommunication and lawsuits. If the terms are disclosed upfront, these risks are greatly reduced. If the financing arrangements are secured upfront, it will undoubtedly be known beforehand that the offer will undoubtedly be covered and the parties will honour their payments. This brings us to the final stage of the example. If the terms of the offer and the arrangements have now been completed, how will the offer be covered? The unit of measure would be a currency issued by a main bank, this means coping with the banks once again. Should this happen, the banks wouldn’t allow these deals to be completed without some sort of due diligence on the end and this could imply costs and delays. Could be the technology that useful in creating efficiency up until now? It’s not likely.
What is the clear answer? Produce a digital currency that is not only just as transparent as the offer itself, but is actually part of the terms of the deal. If this currency is interchangeable with currencies issued by central banks, the only real requirement remaining would be to convert the digital currency in to a well-known currency such as the Canadian dollar or the U.S. dollar which can be done at any time.
The technology being alluded to in the example could be the blockchain technology. Trade could be the backbone of the economy. An integral reason money exists is for the goal of trade. Trade takes its large percentage of activity, production and taxes for various regions. Any savings of this type that may be applied across the planet could be very significant. As an example, consider the concept of free trade. Prior to free trade, countries would import and export with other countries, but they’d a tax system that will tax imports to restrict the result that foreign goods had on the area country. After free trade, these taxes were eliminated and additional goods were produced. Even a tiny change in trade rules had a large influence on the world’s commerce. The phrase trade can be broken into more specific areas like shipping, property, import/export and infrastructure and it’s more obvious how lucrative the blockchain is if it could save even a tiny percentage of costs in these areas.