Web 3.0 is what blockchain is. Tokens are for Web 3.0 what webpages were for the first iteration of the internet. Think about how the internet was in 1997 compared to where we are today. Blockchain is at the exact same point right now.

Here is a simple example:

Company A is using Company's B and C to build a new plant. The project will take several years to complete, and many of the materials used are commodities as well as a lot of labor costs. Company A wants two things: they want the Company B & C to provide what they agreed to, and the prices that were agreed to. They also need schedule obligations, for work milestones to be completed at certain points.

All companies agree that the prices of materials and labor will change over the course of the contract, and that it needs to be adjusted based on inflation and certain commodity prices. The prices can move 10-20% in a given year.

Enter smart contracts. Tie the prices to external sources (oracles) and the prices charged by Company B and C are automatically adjusted. Company A can TRUST the pricing because it is validated by the blockchain it was created on. Tokens issue each transaction as it occurs. There could be thousands of transactions over the course of the project. In addition, Company B and C need to keep a schedule of completion, and if they don't meet the time commitment then Company A gets a rebate. The contract will keep track of all of these obligations and change the prices accordingly.

The contract is recorded and monitoring happens automatically throughout the course of the agreement. Today this takes a team of people just to manage the pricing aspects. There is always arbitration and disagreements as to WHEN triggers should have kicked in. A smart contract does it all automatically without human intervention. It is all about efficient work.


[Post edited by Technocrat at 05/21/2021 3:16PM]