Centralized vs Decentralized Business Agreements
The State of the Nation
Like every ground-breaking invention, the internet is subject to change. We are currently witnessing game-changing evolution in the internet’s progression. The Internet of Information is evolving into the Internet of Value — a new platform that will reshape business and disrupt the current archaic order of human interactions, creating a better society for all. The Internet of Value creates a marketplace for exchanging value in every way, shape, and form. We are moving from a world where the internet serves only as an information highway, to an internet capable of facilitating the transfer of real-world, tangible digital assets, without the need for intermediaries.
As with the Internet of Value, PAID brings revolutionary, fundamental changes in contract fulfillment and litigation to the world of international business. Since the emergence of the internet, we’ve fallen victim to the fragmented, inefficient processes involved in securing and successfully closing cross-border business transactions. Covid-19’s aftermath sees these hurdles magnified to “new normal” levels. PAID brings the answer we’ve all been waiting for, by providing the easiest-to-use, most automated, and commonsensical DApp ever created, enabling everyone to conduct cross-border business.
This new internet based on blockchain technology will transform financial services, reshape corporate structures, redefine the role of governance, and introduce a fresh approach to democracy.
In the next decade, innovative business models based on the concept of the Internet of Value will disrupt every industry. In a survey conducted by Deloitte, 85% of C-Suite executives admitted they would lose their competitive advantage if they did not adopt blockchain and crypto asset technology. The same study showed that 88% of executives feel blockchain technology is broadly scalable and will eventually be adopted by the mainstream.
Consumers spent an estimated $2 trillion online in 2020, a number analysts expect to increase to $3 trillion by 2024, according to a study by Statista. This doesn’t take into account the currently unlisted and unaccounted-for digital goods and services exchanges across jurisdictional borders, estimated at $75 billion annually.
From simple online marketplaces to complex international IT projects, individuals worldwide enter into bilateral agreements to scale their services. Due to the centralized nature of existing market platforms and business contract solutions, most contracts and value transfers are formalized through intermediaries. Participants are captive to paying high fees, and lack the ability to carry out sufficient due diligence or designate their own chosen fee structure. Dispute resolution becomes nearly impossible to pursue efficiently at the outset of a disagreement, in the event a counterparty fails to uphold a contract.
Centralized firms currently attempting to tackle these challenges include Legal Zoom and Docusign, and although they have played a crucial role up until now, their suite of services is incomplete. They rely on centralized systems, and are incapable of enforcing contracts across jurisdictions.
There are decentralized, blockchain-focused firms currently servicing PAID’s target market, such as Kleros, ANJ Aragon, Nexus Mutual, and TrustSwap; though these projects have brought several innovative solutions to the problems we’ve cited, they still lack a comprehensive offering. These projects are primarily structured around existing complex legacy systems and lack a decentralized finance focus. The gaps created by their incomplete suite of services leaves PAID perfectly positioned to enter the market with a bang, offering a suite of decentralized solutions to resolve all aspects of the fragmented international business transaction dilemma. This gives PAID an enormous competitive advantage over its rivals.
Picking up the pieces
We can make quantitative comparisons when looking at the table below, highlighting the critical differences between PAID and its closest competitors.
Arbitration and escrow are offered in traditional, centralized legal ecosystems, but it is costly and time-consuming. Existing in a decentralized form on the blockchain, Kleros, ANJ Aragon, Nexus Mutual, and TrustSwap all include both arbitration and escrow in their decentralized offerings.
Traditional legal service providers do not offer lending and borrowing capabilities, while the only decentralized option is Nexus Mutual…that is, until now. “SMART Agreements”, a product designed and offered exclusively by The PAID Network, form the backbone of the smart contract-powered protocol. This enables the transparent, straightforward understanding and execution of contracts in a decentralized manner.
PAID stands out in the contract insurance landscape as one of only three insurance providers, alongside Nexus Mutual and Kleros. While they do currently provide contract insurance to their users, they do not provide an audit trail, an essential, blockchain-powered component. Audit trails in legacy legal systems exist, but no centralized software solution can rival distributed ledger technology.
Where do we stand?
PAID’s SMART Agreements are an exclusive feature unique to the platform, largely eliminating the legal guesswork surrounding existing service offerings. By adhering to well-established, standardized agreements which are easily interpretable, transparent, and enforceable, users of the platform are able to have peace of mind when doing business with anyone, anywhere. This is PAID’s goal.
Combining reputation scoring, liquidity pooling, and staking processes, PAID ensures seamless, trustless functionality of its turnkey solution for international business for the solo entrepreneur, as well as businesses large and small. PAID Network will disrupt the traditional B2B insurance industry by delivering low-cost, automated, and interoperable solutions for contract insurance.
In a modern world, modern solutions are needed to navigate the increasingly complex landscape of international business. PAID’s combination of features enable it’s users to conduct the entire business process in one ecosystem. From drafting contracts to resolving disputes, from insurance to lending, the comprehensive suite of services offered by PAID enables users to meet nearly all of their financial requirements on one easy-to-use platform.
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