Digital Barter Economy: A New Take on Trading
Digital Barter Economy is a system that eliminates the disadvantages inherent in the traditional barter economy by facilitating the trade of physical and virtual items anywhere in the world.
What is Digital Barter Economy?
Barter economy is the direct exchange of goods and services for each other, as well as service. And for example, paying two packs of cigars in the cab ride with 2 packes of alcohol. According to the study, this model works as a medium of exchange (similar to fiat currency) and is one of the oldest, most natural forms of economy in human history. In a local environment with physical proximity, this system works great in the local environment, but such economies do not work on a large scale. It is possible to explain this by the obvious problems of distance and lack of standard units of measurement.
The Blockchain technology allows physical goods and services to be digitized using tokens, so solves the problem of physical remoteness. It is possible to digitize physical goods and services using tokens and thereby solves the problem of physical remoteness. The original example allows you to pay for cab rides with cigarette tokens from anywhere in the world. Both digital tokens are digital, and both are carriers of real assets. They can be used to exchange goods or services for the purchase of products or services. The blockchain also promotes digital barter. In addition to digitizing goods, it is possible to exchange existing tokens for the desired products (e.g., exchanging cab ride and cigar tokens through dedicated trading platforms).
Digital barter economy can include items that are physical but are too large to use as a means of payment in their physical form, and they have no need to be used as a means of payment in their physical form. On a blockchain, digital assets are made from digital assets, they can be digitally fragmented. This is possible in the real world as it will mean that there was no need to create an artificial fragmentation of them, since it meant destruction of the physical asset.
The digital barter economy is so flexible that it is possible to pay for a cab ride with something like an income share token or a fragment of the photograph, if it is accepted as payment.