So crypto represents a microscopic amount of the 400 trillion USD wealth, and cryptocurrency can be used as a root of trust. So what. Why do I care?

I care because it seems like there are so many places where trust networks need help. And I think there is a significant number of places that DLTs can provide a root of trust, fast, every time, and remove the incredible hurdles that we must overcome to establish trust in society. Of the hundreds of areas that might be impacted, a few come to mind quicky.

Here is a list in no particular order:

Broker replacement

Credentialling

Lending

Political contributions

Money transfering

Each of these areas of impact have many many sub categories that could benefit from reduced barriers to establishing trust. Drilling down in just one area, brokers, let’s pick a specific type of broker that could be made more efficient. I will pick freight brokers, a person or company that organizes shipping of goods.

Let’s say that a shipper needs to transport a shipment of goods between two cities, New York to Los Angeles. The shipper would typically contact a freight broker to help find a carrier to transport the goods. The freight broker would negotiate rates with carriers, handle paperwork, and ensure that the goods are delivered on time.

With smart contracts, the process could be streamlined and automated. The shipper could create a smart contract that specifies the pickup and delivery locations, the type of goods, and the delivery timeframe. Carriers could then bid on the contract, with the lowest bidder winning the contract.

Once the contract is awarded, the smart contract could automatically generate a bill of lading, a delivery confirmation, and payment to the carrier upon successful delivery of the goods. The smart contract could also use blockchain technology to track the shipment in real-time, ensuring that the goods are delivered on time and securely.

Once established, the barrier to entry for all transactions between the shipper and transporter is very low, making the process much more efficient.