How does it work?

I posted this on the economics forum also

Help me understand the "coin" business model in the real world.

What I am not understanding is how the coins and tokens that are attached to contracts work.

Lets say a token is created to get rid of the middle man in a mortgage closing to verify the transaction. So the buyer acquires the token, submits the documents and token as payment on the blockchain. The network verifies the transaction, the seller gets the tokens as payment.

1) What does the seller do with the tokens? Presumably they are only selling one home so to collect many of these tokens does not make sense.

2) Do they sell them on an exchange and go through the same laborious process of getting the money out, no response to support tickets and withdraw limits?

3) If these tokens are traded the values can change on the hour, so do they really want to risk accepting payment if the value rapidly declines?

4) Same is true with the buyer, as tokens increase in value, it will cost more to transact.

I understand that these tokens and the blockchain can have the benefits of reduced fees and immutable verification but I do not understand how it works as a business model.

It would seem that there are huge risks on both sides if you do not bind the value of a token with a stable fiat currency.

I also would love to hear of anyone submitting a withdraw request at one of the current exchanges for 100k+ in fiat and having it get wired without major delays and hassles.

I guess I am having a hard time coming up with a real world model that eliminates the middle man, reduces fees and verifies transactions, and has the ease of cashing out.

Maybe what solves this problem is a highly reliable way of cashing the tokens out. Much more reliable exchanges? I know the crypto purists do not want to have fiat in the picture, but the current reality is that it is necessary for the major of consumers and businesses to be able to convert these tokens into cash.