Blockchain and Distributed Ledger Technologies are more than “Just Currency”
Distributed Ledger Technologies (DLT) are simple in nature and complex in operations. DLTs hold real promise in their ability to reduce “Friction”. Friction can be an economic cost and expense that strips your liquidity by forcing buyers and sellers to navigate through the “sludge” by adding unnecessary Steps and Bureaucracy. Like the preferred clean oil in your car, reducing friction improves more than your engine.
Take the recent issue in the U.S. with tainted romaine lettuce. The romaine lettuce from Arizona was identified as dangerous for consumption and was pulled from distribution networks. Now, not all romaine was dangerous; in fact, the super majority was perfectly safe, healthy, and ready to eat. The challenge is with the “system”. It wasn’t able to specifically identify which lots of romaine lettuce were tainted and which locations had already received the lettuce.
Had the farming distribution network leveraged a DLT for their lettuce distribution, the system would have detailed “exactly” which lettuce lots had been shipped to each location. This knowledge would have known which trucks, warehouse, and final retail destination each head of lettuce had traveled. Additionally, with a DLT, it would be possible to actually track the purchaser of the lettuce. All of these processes would happen automatically via the DLTs smart contract processes. The end result is better information, faster, cheaper, more reliable, and without the friction that ultimately creates inefficiencies and could potentially harm and be a detriment to your business.
Most products that I’m familiar with can benefit from DLTs. Take luxury goods and brands, their images and market value is completely connected to their ability to control their use and distribution systems. Knockoffs (counterfeits) dilute their value and their use, acquisition, and/or production are illegal without proper permission. Consumers, leveraging a specialized DLT will allow for the confirmation of legitimacy – both new and used – of luxury products. Additionally, law enforcement will be able to identify and confirm counterfeit products faster and remove them from the marketplace, thereby protecting both producers and consumers.
Consider the convoluted process for confirming title to real property. Notaries, stamps, recordings in complex plot map books, add opportunities for human error. Add to that the near thievery known as Title Insurance – here the same companies get to be paid for the same effective product every time the property has a legal change. The DLT would simply become a “Smart-Contract” version for title confirmation; the title would be incorruptible.
With property rights comes the ability to create a future. I understand that 70% or more of the world’s population lives in areas where property rights are tenuous as in a dictator can simply state that long-time family property is now the property of say “his brother”. With a DLTs, the trail would protect the property for future generations.
The DLT could also align vehicles with drivers whereby we would always know who was driving and when. Now, maybe this is too much information. Information and Privacy concerns are strongly supported within the DLT community. The DLT originated from people who likely distrust centralized governments and their procedures. The belief in the individual and the value of collective individuals permeates the DLTs. The essence of a frictionless world is that more will become available at less cost and less hassle leading to more freedom and liberty.
Strong concepts. Lofty goals. Difficult to achieve and a reason to stretch.
Humanity has evolved over the eons from nomadic independent units to centralized civilizations and now towards a cohabitation hybrid where we are simultaneously connected and separate. Centralized power too frequently leads to corruption and failure. Rogue individualism is too frequently anarchistic in nature. Together we can leverage options that before the DLT simply didn’t exist whereby we improve our individual and collective well-being. Certainly a journey worth traveling.
Now, go enjoy your day.
Daniel Morris
Daniel frequently provides Media Content via Workshops, Podcasts and Printed Articles on topics like Bitcoin and Cryptocurrency, Wealth Preservation and Planning, Global Banking and many other high-level financial topics that serve and demonstrate the Value of our Global Network that should be of interest to those who need Private High-Wealth Services.
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