Have you ever shared documents for editing? A traditional electronic document (think MS Word) must be transferred to an editor, where changes are made locally, after which the document is sent back. Google Docs revolutionized this process, making it possible for teams to edit documents in the cloud in real-time, keeping a record of all changes. This is how the blockchain works, whereas centralized banks are stuck with the “MS Word” paradigm.
This is why it takes so long to transfer money: the ledgers on both sides must be updated individually while the transfer is performed. Blockchain makes the whole process much faster, easier, and more secure, because it’s conceivable that financial records can be hacked and altered at an individual bank, but when records are hosted in the cloud, the other 99%+ of nodes will still have the authentic blockchain record.
Another industry that’s being disrupted by the blockchain concept is real estate, where the same advantages will serve to ameliorate the often risky and cumbersome process of buying property. In this case, the middleman is the escrow or title company, which usually takes 1-2% of the total value of the property — not an insignificant figure — to ensure both parties’ honesty and legitimacy.
Again, the distributed nature of a blockchain automatically ensures this credibility, which also prevents fraudsters from posing as sellers and bilking potential buyers out of their money. Another great advantage is transparency: in a blockchain, buyers’ credit history and income will be readily available, and homeowners can prove ownership of the property and provide a complete record of repairs and upgrades.
Elena Masolova, TokenStars investor backer and Forbes top-30 internet entrepreneur, explains, “Aspiring tennis players need approximately $100K a year to build a career. Some have to put everything at stake, just like Olympic medalist and 5x Grand Slam winner Maria Sharapova, who came uninvited from Russia to Nick Bollettieri Academy in Florida at the age of 9. Her father had to work as a dishwasher just to cover her bills. Later she earned $36.5M in prize money and $285M in sponsorship deals. With ACE, young players like Maria Sharapova can get funding help covering their academy costs, coaches, sparring partners, and tournament participation, as well as support in signing sponsorship agreements.”