All posts tagged Finance
In the realm of modern business, where digital transactions reign supreme, compliance with regulatory standards is non-negotiable. Trakti, a pioneering force in contract lifecycle management, continues to lead the charge to revolutionise the way companies address compliance requirements. Building on its tradition of innovation, Trakti is excited to announce the launch of its latest innovation: DORA compliance made simple.
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The acronym “DeFi” stands for decentralized finance. Think of it as an umbrella term for a whole huge financial infrastructure that focuses on and empowers decentralization. DeFi is closely related to cryptocurrencies or rather – the blockchain technology that underpins them. As such, it is important to understand what is DEFI and why it is important for companies to apply it in contracts.
Definition of DeFi
Being decentralized means that contracts can function without a middleman. When it comes to financial transactions and supply chains, that middleman can be anything or anyone – a bank, an individual acting as an escrow, a developer who has written code for the application that you’re using, and so on.
Following that train of thought, the main benefit of DeFi is the fact that it allows for trustless financial processes to take place within its ecosystem. For companies that deal with multiple vendors or suppliers, this could mean thousands of dollars in savings. When you think about what is DEFI and why it is important for companies to apply it in contracts, think of it in the context of optimization of existing processes and operations.
Smart contract and token usage
We have talked about smart contracts in the past. A smart contract is an agreement that has been coded into the blockchain. The main advantage of smart contracts is that they are practically impossible to breach – once a contract is submitted to the blockchain, there’s no turning back, and no way to reverse it or change its settings.
Smart contracts are the gateway into DeFi applications as they are completely trustless, and do not have any third-party interference.
More and more organizations are harnessing the power of the open-source financial ecosystem to solve problems and create new opportunities.
Benefits of DeFi
One of the biggest trends in the DeFi sector is the emergence of cross-chain technology, which allows users to carry out transactions across multiple blockchains. This is a bandwidth solution that can be used to distribute the burden of demand. Other trends that are gaining momentum include the automated market-making capabilities of Uniswap, the ability to manage assets on YFI, and the faster transactions on Aave.
The rapid emergence and evolution of the DeFi movement have taken it beyond its traditional role as a speculative trading platform. It is now taking on a more utility-based approach, with the goal of making it easier for users to exchange fiat money for cryptocurrency. The success of the movement will depend on the various factors that affect its utility, such as transaction fees, speed, and systems.
As the world experiences new challenges, players in the financial industry continue to develop new ideas. With the support of strong momentum, DeFi is well-positioned to transform the traditional paradigm by helping companies manage their assets, including — buying, selling, and transferring digital assets.
Transparency and decentralization are paving the way to discover and analyse an unprecedented amount of data. With faster access to data, businesses can make well-informed business decisions, discover new financial opportunities, and adopt better risk management tactics.
Get your company DeFi-ready with Trakti’s automation tools.
To better understand the definitions related to the use of Smart legal contracts and the Trakti platform, download now your copy of the Trakti Smart Legal Contract Glossary: https://trakti.com/smart-contract-glossary/
To find out more about Trakti, go to: https://www.trakti.com/why-trakti-en/
Real estate, as in all commercial fields, has been a victim of the great uncertainty that the pandemic has brought to most industries.
There has been a drop in the number of contracts that have been signed. And the investment risk in real estate has grown, especially in the commercial sector.
Many people were not ready to manage negotiations through digital systems and didn’t have the tools to rent out apartments or commercial properties during a lockdown.
So how to implement contract innovation in real estate? Keep reading to find out 😉
Photo by Aleksandar Pasaric from Pexels
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A few months ago, the EIB launched a digital bond issuance on Ethereum, deploying this distributed ledger technology for the registration and settlement of digital bonds, in collaboration with Goldman Sachs, Santander and Societe Generale.
Let’s see what this means for finance.
Reading time: 3 minutes. Photo by fabio on Unsplash.
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