Crypto innovation and Blockchain technology are sweeping the world and bridging many of the voids that the internet was expected to cover but fell short.
Blockchain came about and proved to be the missing link in true disinter-mediation for many applications through the use of smart contracts and smart-contract escrows… But as many are discovering, smart-contracted escrows comes with some limitations that can possible cause just as many problems as they solve.
So what are some of main the drawbacks?.. and what can be done?
Firstly, complexity. Smart contracts work great when the outcomes are definitive or binary. Cracks emerge very quickly when the number of possible outcomes increase. As outcomes increase, so does the risk of error and oversight. This can cause major trouble and stress when money is held up in a smart-contract because the contract conditions haven’t been met and it cant execute. In the world of e-commerce, a simple retail purchase can have dozens of potential outcomes, and the genius concept of the simple smart contract escrow quickly becomes your worst nightmare.
‘Although smart contracts have amazing capacity to help dis-intermediate, they are not always the best solution.’
Secondly, is the exposure to volatility. As the crypto market matures the volatility will subside. In the meantime, volatility plays a huge factor in the financial viability of a transactions.
Traditionally speaking, when funds are held in a smart contract, the merchant is exposed to the market volatility and there is very little in the way of protection. This exposure is amplified when dealing with e-commerce because it can literally take weeks for the terms of a smart contract to be met, especially when the settlement terms of the smart contract are dependent on the item arrival, delivered as described, in working order and a number of other things. As a merchant, this exposure is be nerve-racking and sometimes causes cash flow problems… particularly in a bearish market where cryptocurrency can turn on a dime (no pun intended) and can literally swing 70% of it’s original value in a matter of a week or so.
Here is how it works:
The token is a mosaic layer on the powerful NEM platform which allows for extremely fast transactions and amazing depth of functionality.
Inspired by Binance’s BNB Token, a merchant on Ecryptostore.com has the option to use the FMT tokens. When a merchant uses the tokens on the platform they are rewarded with heavily reduce transaction fees, no monthly subscription fees, the ability to elevate their merchant and affiliate status and provide incentives for attention based-marketing. The strong utility aspect of the token creates organic demand from merchants.
The real kicker however, is that a merchant can ‘stake’ their FMT as collateral against a sale to allow for the buyers’ funds to instantly clear, thereby reducing the exposure to market volatility created by a traditional escrow.
The simple concept is extremely effective… By leveraging against something that the merchant already holds and uses for its utility purposes, the FMT tokens can also act to protect the buyer during the transaction. When combined with ID verified merchants, Peer reviews, traditional business verification and optional buyer and merchant cover the smart contracted escrow riddle is solved… Instant settlement escrow is the answer!
If you are interested in learning more about Free Market Token or would like to participate in the ICO, simply head over to: Freemarkettoken.io
To set up an account on the Ecryptostore please visit: www.ecryptostore.com