Importance of blockchain technology

Importance of blockchain technology

Let’s assume that there is developed a new technology which allows several parties to carry out a transaction on any real estate deal. In this case, the concerned parties come together to complete details about special circumstances, financing and timing. The question that arises here is how these parties will rely upon one another. It is necessary for them to have their agreement verified by third parties like government registration, legal teams, banks, etc. Hence, it tends to bring them to square one with regards to using technology meant to save costs.

The next stage witnesses involvement of third parties in the deal to offer their valuable input, when transactions are being created within real time. It helps to reduce significantly the role of middlemen. In case, it is a transparent deal, then in few cases, it is possible to even eliminate the middleman. Lawyers can prevent lawsuits and miscommunication. However, the risks can be minimized greatly or completely eliminated if terms of the deal are disclosed upfront. Again with secured upfront financing arrangements, the parties involved can be rest assured that the deal is paid for and the payments will be honored by the concerned parties. The question that arises here is if terms related to the arrangements and deal is completed, then how is the deal to be paid for? Central bank issued currency is likely to be the measurable unit. This means that the parties have to deal with banks again. In such a case, the banks are not likely to allow completion of the deal without some kind of due diligence from their end. This will only imply more delays and costs. So, is the technology useful enough to create higher efficiency? The experts opine that it is not!

Effective solutions

A digital currency needs to be developed which besides being transparent should also be part of the deal terms. If the currency is interchangeable with the central bank issued currency, then the only need here is to convert digital currency to popular currencies that is possible at any point of time.

Hence, the technology that is being stated in the example is stated to be blockchain technology offered by the top blockchain companies in India. Trading is undoubtedly the backbone of any country’s economy and the reason for money to exist is for trading purpose. Trade does comprise good amount of production, activity and taxes. Savings in this particular area may be applied anywhere in the world and prove to be quite significant. Free trade is one such example. Before free trade, countries were known to import and export with other countries, however, had tax system which would tax all imports. This was to restrict the implications of foreign goods upon the country’s economy. But after the implementation of free trade, the taxes got eliminated and variety of goods was produced. World trade could be broken into specific areas such as real estate, shipping, export/import & infrastructure. Therefore, blockchain solutions are found to be quite lucrative as it is in a position to save good percentage on the costs in such related areas.