A new era opened by blockchain

A new era opened by blockchain

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Dongchil Kim, CEO of Bitsys

The phrase “oral agreement has no legal effect” is incorrect. However, although there are quite a lot of cases of verbal agreement when small amounts come and go in real life, people do not know well whether oral contracts have legal effect. If the parties were willing to bring legal effect into force, an oral agreement alone can take effect. However, if the other party claims that there is no contract signed, or by manipulating the contents, it may be unfair. In this case, it is a problem that there is no evidence, but if you have recorded it in advance, it can be legal evidence of course. However, it is very cumbersome to sign or seal contracts that cost a small amount of contracts one by one as a standard contract. Even if a written contract is concluded with a standard contract, many problems arise. Situations that are not clearly stated in the contract may arise, and the contents of the contract may be interpreted differently depending on each individual’s point of view, resulting in disputes.

◆ Problems surrounding contracts, can be solved with blockchain

The problems surrounding these contracts can be solved with a technology called blockchain. Smart contract, one of the functions of the blockchain, is its core. A smart contract is a contract between two or more parties exchanging digital assets (coins or tokens). When one or more of the parties send a digital asset to a smart contract, the contract is activated, and the digital asset is sent back to another person according to predefined programming rules. You can think of vending machines that are common in the surroundings. If you put in the right amount for the product, the product is delivered, and the remaining balance is returned as a contract. When such transactions are implemented in a blockchain, it is called a smart contract.

The advantage of smart contracts is that it eliminates unnecessary intermediary or contracting processes. In the case of existing transactions such as commodity transactions through commodity trading platforms and stock exchange through stock exchanges, transactions are possible only when there is an entity that operates them. However, in the blockchain, anyone can use smart contracts to make their own transactions. In other words, if the underlying infrastructure of the blockchain is proliferated, various business ideas can be implemented. For this reason, the 2016 World Economic Forum said that blockchain technology is the two major technologies of the Fourth Industrial Revolution along with artificial intelligence technology.

◆Blockchain opening a new era

How long will it take for blockchain-based services to replace existing services? After the Internet was introduced by the US Department of Defense Alphanet in 1969, it took 40 years for the existing offline business to become an online business using the Internet. Even if the blockchain technology is a new technology, the speed of technology development is accelerating, and it seems that it will not be too far until the commercialization of a blockchain-based service that can replace the existing service.

PayPal, an American online payment service provider, has supported cryptocurrency transaction services since November of last year and recorded the highest performance ever. PayPal’s chief executive announced that the fourth quarter of last year’s results increased three times from the same period last year in a report conducted on the 3rd in local time.

VISA, a global payment technology company, has decided to support cryptocurrency transaction services for banks around the world. Visa said in a press release on the 3rd local time that it will pilot an API (application program interface) that supports virtual asset transactions. This opens the way for banks to trade cryptocurrencies such as bitcoin in the future.

Miami, Florida, USA, is taking the lead in building a bitcoin-friendly city. The plan is to pay the salaries of public officials in bitcoin, and to pay taxes in bitcoin. In an interview with Forbes on the 1st of the local time, the Mayor of Miami announced the plan, saying, “We are considering making it possible to pay civil servants salaries or pay taxes with Bitcoin (BTC). Mayor Suarez said, “Cryptocurrency will be the hottest topic in the next few years. We are doing our best to make Miami a bitcoin-friendly city.”

As such, the blockchain is opening a new era. Korea is classified as an advanced country, but the reality is that Korea’s domestic market is only about 1-2% of the world market. If you actively respond to the new changes opened by the blockchain, it will be a foothold for further growth.
We look forward to the future of Korea leading the blockchain digital asset industry.