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How Do You Trust Your Business Partners With Smart Contracts?_______________________________________________________________
Business and fraud are often intertwined, two sides of the same coin. Accountants may commit miniscule mathematical errors, leading to embezzlement. Operations managers may skim off funds to pay for costs illegally. And, business partners may turn on each other.
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Fraud Amongst Partners Example._______________________________________________________________
A famous case involving Chicago real estate development company, Joseph Freed & Associates, suffered partner fraud by the majority owner. Laurence Freed, 50% shareholder in the venture owning the development business, ultimately made the call to divert money from partnership bank accounts, without the knowledge of his partners.
A slew of other fraudulent activities occurred at the company, ultimately leading to the indictment of Mr. Freed. These include pledging the same collateral to two separate financial institutions, and abusing a tax financing system in the city of Chicago.
This is merely a real world example with significant notoriety. Countless other ways exist, in which one partner can commit fraud against other partners. Blockchain technology provides the most straight-forward of solutions: Smart contracts. Ties.Network is the vehicle for smart contracts to bloom.
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Smart Contracts_______________________________________________________________
Unfortunately, these business dealings occurred in the mid-2000s — a time when more secure contracts did not exist. Prior to the dawn of blockchain, businesses were required to simply sign a contract and trust the other parties. Trust can easily be broken; thus, the concept of smart contracts arose. Nowadays, businesses may engage in both traditional and smart contracts.
There are plenty of business-related scenarios, from which to choose. But let’s focus on an example many people experience during their lifetime: Purchasing a house. Now, here’s how Ties.Network steps in.
A husband and wife put in a bid for a house, and it’s accepted. At that point, they create a smart contract on Ties.Network, bringing the seller on board, as well. The two parties set the terms and conditions of the contract. Then, the seller provides a wallet, and they agree upon a time by which the cryptocurrency will be sent. If the couple sends the funds before the specified time, it will execute an immediate transfer of the deed from seller to buyer. However, if the buyer does not send the funds on time, the contract will remain unverified, and the deed remains in the seller’s hands. This is otherwise known as an automated contract.
While this is a relatively simple example, let’s look at smart contracts in the context of Joseph Freed & Associates. Most obvious, is the use of a smart contract with both banks offering the company a loan. The first bank would have the collateral locked into a contract, which immediately stops it from use in a separate loan. Because it’s already been registered on the blockchain, it’s impossible to use an asset twice.
If Joseph Freed & Associates had created smart contracts with the Ties.Network, they would have completely avoided the headache that Laurence Freed created. Ties.Network is an innovative community in which blockchain professionals may connect, and work together on a platform built on trust.
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Ties.Network_______________________________________________________________
An Ethereum-based platform for the crypto community, Ties.Network, allows one to quickly find skilled professionals worldwide. Users strike deals via smart contracts. A user can create both projects and teams, and conduct an ICO’s due diligence, thanks to an expert community.
Smart contracts on Ties.Network can have one of three purposes. First is the ability to outsource jobs. Conduct a search on the platform for a certain type of contractor, based on your needs. These needs can range from legal help, to website copy, and programmers. Once you connect with a contractor with whom you’d like to work, you will agree upon terms and conditions, that will be executed and regulated by a smart contract.
Second, is with teammates, contractual, or temporary work, whereby project details and terms are regulated by a smart contract. If you already have a business and you’d like to move your clients from paper contracts to regular ones, you can create contracts for a specified group of people. Ties.Network gives you the ability to pay team members via a wallet.
Last, is the ability to garner feedback from experts. Because the platform vets all transactions, any illegitimate or questionable data is immediately rejected. Each expert’s background is based on real business deals with smart contracts, which, of course, are written on a blockchain. Therefore, all skill sets are verified in a real world manner — rather than LinkedIn’s skillsets, whereby any user can endorse a particular skill. Ties.Network allows experts to speak freely about various issues on the network. While the platform allows you to choose your degree of anonymity, all advice is valid given said verification.
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Real Life Applications_______________________________________________________________
Let’s say you’re a cryptocurrency hardware wallet store located in Los Angeles, and your supplier is located in South Korea. Without a smart contract, you’d have to place a ton of trust in your supplier. So, ask your supplier to set up a profile on Ties.Network. They will input information such as name, date of birth, current occupation, contact information, and more. From there, you and the other party will set the terms of the smart contract on Ties.Network. No more, “Yes, the shipment was sent!” Only to find out that was an utter lie.
Alternatively, it can be extremely expensive to hire an in-house writer. The benefits alone can eat you alive, thus making outsourcing the best option. But, one of the most frustrating things about the blockchain sector is the lack of talent. Since it’s such a new technology, there are few experts…and many of them live in very different areas of the world. With Ties.Network you can easily filter contractors, to find the perfect writer — no matter where they are located. And, if you’d rather just wait until writers find your project, you can upload all pertinent details and sit back. Once you find the right one, you can negotiate project terms, and a smart contract will regulate it through completion.
In the world of art, purchasing a piece halfway across the world can be downright terrifying. Fine art costs a pretty penny, and you’re putting a lot of trust into a stranger once you’ve purchased it. Rather than biting your fingers bloody, opt to set up a smart contract with the buyer on Ties.Network. In this case, you’d enter terms of the deal, such as the price, method of delivery, and required documentation. Once everything has been completed on all parties’ ends, the money releases to the seller. Art fraud no more.
These are just a few of the many real world examples you would encounter in everyday life. Smart contracts aren’t just for blockchain related companies — they’re for everyone who is seeking more security in their business dealings. Blindly trusting all parties is no longer innate to a business contract.
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Conclusion_______________________________________________________________
Smart contracts are a digital extension of the paper contracts of old. They provide an exceedingly secure method to conduct business. The issue of fraud becomes moot with the implementation of smart contracts, no matter the industry, project, or company. Ties.Network is the vehicle that truly allows users of all kinds to secure their contracts. It’s an easy “yes!”
