One of the competitive advantages of Etherecash is the fact that it uses lawyer backed smart contracts in the operation of its platform. “Lawyer backed” means the smart contracts are supported by the official opinion of lawyers in terms of the conditions required for peer-to-peer lending.
The main reason for a smart contract to be lawyer backed is to ensure the lenders feel as if they have a high chance of being able to collect on their loans. Lawyers make sure the agreement is secure and legal, and this allays the concerns of both the lender and the borrower. Increasing the confidence in the system is extremely important. Most of why people support Bitcoin is they no longer have complete confidence in the system that governs the fiat currency in their home country.
Competitive advantages are what set companies apart and allow them to flourish without competing on price. When a market boils down to competition on price, profits start to disappear and there is very little quality in the product. Etherecash has built out their competitive advantage of having lawyer backed smart contracts because it knows the top concern of blockchain users is security.
Legal offices all over the world have given their support to the smart contracts that back Etherecash. This is what allows for it to be adopted within international regulation. We have consulted with many people and built our entire platform around what is most legally sound.
The legal team at Etherecash has worked with developers from the ground up to make sure that the conceptualization, framework, development, and registration is legally secure. The goal was always to cover everything from a legal perspective. This has two effects on Etherecash. First, it communicates the team is very serious about delivering a top quality product and not cutting any corners. Consumers like this, but businesses require this. The platform is already being built out to allow for a high level of robustness, which will allow it to scale to much higher uses very quickly. The second reason this is important is it demonstrates what type of team Etherecash has assembled. By realizing that no house is complete without a proper architect, the team has shown they think and plan ahead far enough to cover their bases for all potential problems. The confidence this should inspire in lenders and borrowers a like it huge.
In a lot of other start-ups, it is common for something to be developed and then brought to the legal team for approval. By integrating the legal aspects from the very beginning, Etherecash has made it so the lawyers can wholeheartedly back the current manifestation of Etherecash. In an industry where there are so many regulatory requirements, which are then complicated by the international aspects of banking, it is almost essential to have done this from the beginning. Working without lawyers would have been to doom the company. After the market crash of 2008, there was a push to implement more regulations to control the way money was moved. Since then, we have seen a full recovery of the economy, but many of these regulations are still in place. Whether they are removed or not, it is important that the smart contracts are designed in such a way to always be compliant with the strictest of rules. By covering these fringe cases, it becomes possible to ensure Etherecash is not fragile to any future changes that could be made by regulators. Normally, when someone goes to read the fine print for any contract they are part of, they have no idea what it means. It is not uncommon for most things that lawyers write to be completely incomprehensible to anyone who is not a lawyer. There are two possible solutions for this.
Either lawyers could work to make the contracts more intuitive so the layman is capable of understanding them, or lawyers can standardize contracts to the point where a user just needs to examine the various inputs that are unique to the specific contract. As a major competitive advantage for the protocol, it is incredibly important that the company has taken the time and expense to make sure it is a legally sound concept. New lenders and borrowers are going to be entering the market in droves, and the support of lawyers in the contracts on Etherecash are what can enable the “lend” aspect of the “lend, send, and spend” mantra.
Usually I never comment on blogs but your article is so convincing that I never stop myself to say something about it.
You’re doing a great job Man,Keep it up.
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