What Makes Blockchain Technology So Important?September 19, 2018
Let us say that new technology is established that could enable countless parties to implement a real estate deal. The parties get together and accomplish the details about financing, special circumstances, and timing. How will such parties determine they can trust one another? They would have to confirm their agreement along with third parties – government registration, legal teams, banks and so on. It brings them back to square one when it comes to using the technology to save expenses.
In the following stage, the third parties are invited to join the real estate deal. There, they will present their input while the transaction is being made in the real time. That lessens the role of the intermediary substantially. When the deal is this transparent, the intermediary can even be removed in other cases.
Further, the lawyers are there to avoid lawsuits and miscommunications. When the terms are disclosed upfront, such dangers are extremely decreased. When the financing arrangements are safe upfront, it will be considered in advance which the deal will be paid for. Thus, the parties will honor their outflows. It brings the people to the last stage of the circumstance.
When the terms of the deal as well as the arrangements have been done, how will the deal be compensated for? Well, the unit of measure would be a currency that is issued by the central bank. That means that you are working with banks again. Should this take place, the banks wouldn’t enable such deals to be done without some due diligence on their end. That’s because it would suggest delays and costs. Is the technology that helpful in establishing efficiency up to this time?
Introducing Blockchain Technology
What’s the solution now? Build a digital currency which isn’t only as transparent as the deal, but is included on the terms of the deal. When this currency is exchangeable along with currencies supplied by the central banks, the sole requirements outstanding is to convert the digital currency into a sought-after currency such as U.S. dollar or Canadian dollar that can be accomplished at any time.
You see, the technology is referred to here is the blockchain technology. The main reason why money is existent is for the sole purpose of trade. Trade establishes a considerable percentage of activity, taxes, and production for different regions. Any savings within this region that could be applied across the globe would be significant.
For instance, you can look at the concept of free trade. Before the free trade, nations would export and import along with other nations. The term trade can be broken down into more particular areas such as export/import, real estate, shipping, and infrastructure. Plus, it’s more apparent how lucrative the blockchain technology is if it can save a small percentage of costs in such areas.
There can’t be one particular best, but instead, there are many effective applications where blockchain can offer the much-required exclusivity and accountability. The XinFin hybrid technology of blockchain could be applied to real world business cases to gain massive value and efficiencies in every business area.