Barter Exchange: Legal Aspects, Features, and Advantages
By: Nansy Dunne
Tags: Barter, Cryptocurrency, Exchange, Smart Contracts, Blockchain

Hello, everybody! 👋🏻 Today we will tell you about the legal aspects, features, and benefits of barter exchange.

🏆 Barter can be described as the act of trading goods and services between two or more parties without using money.

Barter is mutually beneficial for companies and countries that lack hard currency and need to exchange goods and services. The barter system is usually bilateral, but it can also be multilateral.

During currency crises, the barter system replaces money as a means of exchange, for example, when the currency may be unstable or simply not available for trading.

Benefits of barter:

✔️One of the advantages of barter is flexibility. You can trade one related product for another, such as a laptop for a portable tablet, or two completely different items, such as a TV for a lawnmower. You can even save on travel by swapping houses with friends.

✔️ You also have the opportunity to exchange services and services, rather than tangible goods. Instead, you can offer maintenance, construction, or other services in exchange for tangible goods or other assistance.

✔️Of course, barter has a clear advantage in terms of saving money. Not only do you get what you need or want, but neither party has to spend a cent.

The benefits of international barter exchange:

✔️ the ability to develop new markets for products and services;

✔️ establishing market contacts;

providing conditions for firms to enter the markets of less developed countries that have a need for machinery and equipment, but lack foreign exchange;

✔️ the ability to overcome restrictions in order to increase the competitiveness of firms in specific sales markets for export products;

✔️ achieving significant savings in storage costs.

In bartering, a certain amount of different goods is directly exchanged for a corresponding amount of other goods for the purpose of their consumption or subsequent exchange for the desired goods. At the same time, physical barter transactions seem to replace money, making it possible to obtain a quantitatively commensurate volume of goods on the basis of direct exchange.

Many countries may face the following barter problems:

📌 Mistrust between the participants. Barter often follows “gray” schemes, and the participants worked only on trust to each other.

✔️ The use of smart contracts provides complete transparency of the transaction and eliminates the issue of trust between the parties. The main advantage of blockchain is the security and protection of the information that is signed and sent.

📌 When it comes to large transactions, data requires high confidentiality.

✔️ Barter Smartplace offers cryptographic encryption of the personal data of the participants in the transaction for maximum protection, using blockchain privacy protocols.

📌 Today, in order to participate in barter trading, replenishment of a separate company account is required.

✔️ In the Barter ecosystem, you just need to have funds in your bank account and agree to connect it to your Smartplace account to conclude subsequent transactions.

📌 Currently, the digital signature in different countries has different algorithms for standards and its use is strictly regulated.

✔️ However, Barter Smartplace is creating a framework that allows signatures to be signed internationally.

✅ The general benefits of barter are associated with the ability to preserve capital, reduce marketing and transaction costs, the ability to balance production capacity and production needs through the barter exchange of unused equipment, and the establishment of close ties with “barter” partners.

📢 Join the modern barter system at http://barter.company/

Join the community: http://t.me/barterteam

Telegram wallet: http://t.me/barterwalletbot