Why is Blockchain technology important?
Say that new technology is developed which can allow many parties to transact from real estate agreements. The parties gather and complete details about time, circumstances and special financing. How will these parties know they can trust each other? They must verify their agreements with third parties – banks, legal teams, government registration and so on. This brings them back to the square in terms of using technology to save costs.
At the next stage, third parties are now invited to join real estate agreements and provide their input when the transaction is being made in real time. This reduces significant intermediary roles. If this agreement is transparent, intermediaries can even be removed in some cases. Lawyers are there to prevent miscommunication and lawsuits. If the term expressed in advance, this risk is greatly reduced. If the financing arrangement is secured in advance, it will be known beforehand that the agreement will be paid and the parties will respect their payment. This brings us to the last stage of the example. If the terms of the agreement and setting are complete, how will the agreement be paid? The size unit will be a currency issued by the central bank, which means dealing with the bank once more. Should this happen, the bank will not allow this agreement to be resolved without the type of complete test in the end and this will imply the cost and delay. Does technology useful in creating efficiency to date? That’s not possible.
What is the solution? Create a digital currency that is not only the same transparent as the agreement itself, but is actually part of the terms of the agreement. If this currency can be exchanged with the currency issued by the central bank, the only requirement that remains is to change the digital currency into a famous currency such as the Canadian dollar or the US dollar that can be done anytime.
The technology mentioned in the example is Blockchain technology. Trade is the backbone of the economy. The main reason why money there is for trade purposes. Trade is a large percentage of activities, production and taxes for various regions. Every savings in this field which can be applied throughout the world will be very significant. For example, see the idea of free trade. Before free trade, countries will import and export with other countries, they have a tax system that will burden imports to limit the effects that foreign goods in the local country. After free trade, this tax is removed and more goods are produced. Even small changes in trade regulations have great effects on world trade. Trade can be broken down into a more specific area such as shipping, real estate, import / export and infrastructure and more clearly how beneficial Blockchain can save even a small portion of the cost in this field.