Consider the possibility of new technology enabling the purchase of the real estate by many parties. During the meeting, the parties discuss timing, special circumstances, and financing. To confirm the accuracy of their agreement, they will need to consult third parties – banks, legal teams, government registration, and so on. In this case, they are back to square one when it comes to using technology to save costs.
Now, third parties can participate in the real estate deal and provide their input in real-time as the transaction is being created. This reduces the need for middlemen to play an integral role. It may even be possible to eliminate the middleman if the deal is so transparent.
A lawyer ensures that there will be no miscommunication or misunderstanding. By disclosing the terms up-front, these risks can be reduced significantly. In the event that financing arrangements are made in advance, it will be known upfront whether the deal will be paid for and whether the parties will honor their payments. Let’s conclude the example by looking at the last step. We would have to use a currency issued by the central bank, which would mean dealing with a bank once again. It would be impossible to complete these deals without some degree of due diligence on the banks’ end, which would mean costs and delays.
Assume that the digital currency will be just as transparent as the deal and that it will also be part of the deal. This means that if the Governance Platform Development digital currency is interchangeable with other currencies issued by central banks, all that remains is to convert it into a well-known currency like the U.S. dollar, which can be done at any time.
As mentioned in the example, the technology being mentioned is the blockchain. A successful economy is based on trade. Trade is one of the key reasons that money exists. Trade comprises a large portion of the activities, production, and taxes in various regions. In this area, any savings that can be applied worldwide would be most significant. For instance, look at the idea of free trade. Countries used to import and export goods with other countries before free trade, but they had a tax system that would tax imports to reduce the effect that foreign goods had on the local economy. As a result of free trade, such taxes were eliminated and a variety of goods became available.
The world’s economy is greatly affected by even the smallest changes in trade rules. If even a small percentage of costs can be saved in areas like shipping, real estate, imports and exports, and infrastructure, then it becomes more obvious how lucrative the blockchain is.