Scenario -Traditional Exchange platform
You have start learning about trading and exchange markets and have decided to try a popular platform you heard about from a trusted source. After signing up and decided to put $5.00 on the table to test your skills you are prompt with an alert that trade size is too small and you need to trade at least $20.00 a sum which can be raised at any time closing the doors and eliminating small volume traders. You are now turned off by this platform so you wish to withdraw and try another platform you heard about. Upon withdrawal you input your sum of $5.00 only to be prompt by another alert saying withdrawal is too low you need to withdraw at least $100.00. You now realize that your $5.00 is trapped within this platform.
Conclusion: Any exchanges that can pull off trapping users are indeed centralized especially if the platform is a website. The mere fact that your funds are trapped proves that those funds were no longer yours the moment you deposited on the platform.
Fact: This scenario is real and is happening today on centralized exchanges taking advantage of users by providing access to decentralized tokens and cryptocurrencies. We are in the early days of the Great Decentralization and Tokenization and due to the lack of education on decentralization and blockchain technologies those acts are being carried out without notice.
Solution: Decentralized tokens and currencies on decentralized Exchanges ran on smart contract technology on top of blockchain. This gives the users full control of their funds, removing centralized control. Fees will stay fixed, forever; small volume traders are always welcomed. Blockchain technology has no downtime so there is no possibility of hacks and due the fact the platform is an autonomous application there is no possibility of exit scams. Users of the platform decide which tokens are added to the exchange platform.
Scenario - Loans
Tim has $100.00 and wants to lend it to Bob. Tim goes to a traditional escrow service to set up an escrow, the escrow service set the interest rate at which Bob should pay Tim on his initial investment. The escrow service can choose to charge Tim a set fee, higher the interest rate to profit from interest or a combination of both. These high interest rates make it harder for Bob to repay the loan on time if at all. This puts Tim at risk of never profiting or breaking even on his investment. The escrow service gets paid regardless of the outcome.
Conclusion: Traditional services will never be able to do escrows in best interest of their customers simply because that is how they get paid.
Solution: With the use of smart contract technology Individuals can create loan escrow on their own and decide their own interest rates whether either party is local or international.
Scenario - Hire / Freelance
Tim is broke and bored he needs money, he needs a job. Tim goes online and in 3 days on the internet Tim learns how to create a static websites. Tim is still unable to land a job, all the positions in his area are filled or he still has little experience and novice expertise. Tim registers to an online freelance platform where people are being paid $300.00 for static websites. Tim within 1 hour wins a $100.00 job to edit a webpage. Tim completes the job only to realize he got $90.00. 10% is a lot. Tim attempts to withdraw and there is also a 10% withdrawal fee. Tim earned $81.
Bob wishes to upgrade his welcome page his businesses website. Bob Asked around locally and is being charged over $1500.00 because people think bob has a successful business. Bob is fed up and decides to outsource on the internet. Bob registers on a website and posted that he was willing to pay $50.00. Freelancers bid on the job. Bob saw that the lowest bid was $100.00 and gave that guy the job. Bob deposited $100 and upon paying the freelancer Bob realize the Freelancer only got $90.00. 10% is a lot.
Conclusion: Due to difficulties a website faces such as DDOS attacks, DDOS protection fees, Hosting fees, that could result in the failing of the website some fees are necessary however the cost are past down to the users making the business model not as efficient as it could be. The moment you deposit funds to a website your funds are no longer your, a withdrawal fee is you paying to get some of your funds back.
Solution: Through the use of smart contract technology and the blockchains role as the "host/server" high fees are irrelevant, signing up is irrelevant. User can easily conduct business with each other without worrying about high fees, downtime or handing over control of their funds.
Scenario - Private Communication and Escrow
Bob want to sell some skittles. No skittles are in Bob's location. Sugar candies in Bob's community are sold by Bob's competitor. Bob goes online and order some skittles to be shipped to him. The competitor knows that Bob's business is real competition and creates a lifetime decision to hack Bob's email to listen in on all business conversations to better measure his opponent as well as to gain leverage.
Conclusion: Emails are simply not secure enough for business.
Solution: PGP Cryptonote Chain Deprecation (CNCD) encrypted messages and smart contract technology for escrow will be used to complete any discussion before completing a transaction. With this technology Bob will never have to worry about his messages being read by anyone who cannot see his screen during the message's creation. The message is represented by transaction that only the receiver will be able to view the value. Also because the blockchain is being deprecated at a certain block height the message's transaction will inevitably be deleted from the blockchain.