Digital commerce will never be the same when Ethereum and trading sets in and conquers all.
Ethereum is a decentralized platform that features smart contracts. Smart contracts are rules embedded in the blockchain that enable conditions to be enforced. It also allows buyers and sellers to exchange goods and services without getting a lawyer or intermediary. This autonomy is useful for transactions that need to meet certain levels of approval.
To help you understand common cryptocurrency terms, check out the cryptocurrency dictionary.
Paper Contracts: The Necessary Delay
In the real world, contracts are part of the regular business of trading and commerce. Contracts ensure that both counterparties are held to their commitment and bound by law. In the industry, this brings order to the otherwise chaotic world of trading.
Currently, contracts are made possible in the presence of intermediaries such as lawyers or institutions. In the case of importation, an agreement sets out the standard terms and conditions of purchase. For these contracts to be enforced, commercial banks play a crucial role in intermediation between the buyer and the seller. They are the ones making guarantees to the seller that the buyer will pay according to the conditions in the contract.
However, this current practice, done on paper, may take days or even weeks for the contract to be signed entirely and agreed upon by the buyer and the seller. Before cryptocurrency, it has been risky to digitize contracts due to cases of forgery and hacking.
Smart Contracts: A Revolutionary Way
Enter Ethereum and trading going hand in hand. With the smart contracts feature, all necessary contractual obligations can be encoded into the blockchain. Since blockchains are encrypted, it is nearly impossible to forge smart contracts. This technology is a significant improvement.
In the case of import and export, blockchain technology can speed up agreement and execution of contracts. Less reliance on intermediaries is now possible with the use of Ethereum and trading and smart contracts.
Using smart contracts will empower even the smallest of businesses to engage in a broader playing field. They can do it will less concern about the costs and complications of getting intermediary services. They can do it will less concern about the costs and complications of getting intermediary services.
Conclusion
Ethereum offers more than meets the eye. Its apps run on a custom built block chain that can move value around and represent ownership of a property. It is futuristic in a sense that it can create markets, store registries or transfer funds following instructions like a will.
These are all possible without hiring an intermediary. If you are thinking about starting a business beyond borders, you should consider studying Ethereum and trading.
