Let’s imagine that a new technology is created that could enable numerous parties to transact a real estate deal. The parties meet to finalize the timing, unique circumstances, and financing. How will these parties be able to establish mutual trust? They would have to have third parties, such as banks, attorneys, government registration, and so forth, confirm their agreement. They are now back where they started in terms of using technology to cut costs.
The third parties are now invited to join the real estate deal and offer their input as the transaction is being created in real time in the following stage. As a result, the middleman’s influence is greatly diminished. The middleman might even be cut out of some deals if the transaction is this transparent. The attorneys are there to avoid disputes and lawsuits. These risks are significantly decreased if the terms are disclosed up front. If the financing is arranged up front, it will be clear that the deal will be paid for and the parties will honor their obligations. This brings the example’s final phase to a close. How will the deal be paid for if the terms of the agreement and the arrangements have been met? As a result of dealing with banks once more, the unit of measurement would be money that was issued by a central bank. Should this occur, the banks would not permit these deals to be completed without performing some sort of due diligence on their end, which would result in costs and delays. Has technology been all that helpful in increasing efficiency so far? It is not likely.
The answer is to develop a digital currency that is both equally transparent as the terms of the deal and is itself a part of those terms. The only requirement left is to convert the digital currency into a well-known currency like the Canadian dollar or the US dollar if it is interchangeable with currencies issued by central banks. dollar which can be done at any time.
The example refers to blockchain technology as the technology in question. The economy is built on trade. Trade is a major reason that money is necessary. Trade accounts for a sizable portion of regional activity, production, and taxes. Any cost savings in this area that can be applied globally would be very significant. Take the concept of free trade as an example. Before there was free trade, nations would import from and export to other nations, but they had a tax system that taxed imports to limit the impact that imported goods had on the home nation. Since these taxes were removed as a result of free trade, a lot more goods were produced. A small modification to trade laws could have a significant impact on global trade. The concept of trade can be further broken down into more specialized fields like infrastructure, real estate, import/export, and shipping, and it becomes clearer just how profitable the blockchain is if it can reduce costs in even a small portion of these fields.