Historically, humans started to barter trade with one another as it was natural and accessible to do so.
A farmer exchanging excess produces like chicken with another farmer with excess fruits. The purpose of trade is that it makes the trading parties better off – the quality of life is better off for trading parties.
Subsequently, barter trade lost its significance because barter trade had its inefficiencies.
Firstly, it is inefficient to carry the goods to be bartered. Secondly, the goods may not be universally tradable – Johny may not need the chicken, though Mahir may need the fruits. A common and convenient medium of exchange had to be invented – money (legal tender) was invented as a necessary tool to facilitate trade efficiencies.
Legal tender money by definition has to be issued by a central authority in a given country. Usually the central bank in a given jurisdiction. Money is facilitated as a common lubricating element to make trade between 2 or more parties easier and more efficient.
The recent blockchain revolution however resolves the 2 above mentioned inefficiencies of barter trading. Firstly, blockchain technology allows barter trading to be carried out without needing to transport the goods. Secondly, blockchain technology allows the matching of needs between more people across great distances – thus increasing the chance that common needs can be matched and met and in the process accelerating the pace of trading and economic transactions.
This gives rise to immense market opportunity as there is no unified exchange to facilitate the bartering of digital inventories all over the world. Present day cryptocurrency exchanges are basically functioning like a securities & currency based exchanges and not barter trading exchanges – this is missing the woods for the trees. To make things worse, securities & currency based exchanges need to subject themselves to a high degree of regulatory actions. Barter trading is legal in practically all known jurisdictions – they leave it as a private arrangement between citizens or corporate entities.
The accelerated rate of barter trading across national borders also creates new business opportunities. Existing resellers now need a platform for them to acquire digital inventory so that they may conveniently market, barter or resell to a greater market segment all over the world.
This also allows a business to realize its enterprise value faster than a traditional business. A traditional business may take 5 years to realize its enterprise value while a modern business only requires perhaps 2 months. Leveraging on blockchain barter trading, it can increase its customer base and also revenue in a much shorter time. Existing venture capitalists & private equity firms need a platform to discover and exploit these companies for massive gains for their portfolio.
Katalyst is the Blockchain platform that realizes these needs by implementing the following;
1. Ordinary Citizen’s Access – Katalyst blockchain platform is cost effective such that every ordinary citizen all over the world can participate. This is incredibly important as there are still a lot of people who are unbanked. By not having a bank account, these people are effectively removed from participating in the global marketplace.
After downloading a wallet software free from the Internet, they would be able to participate in the platform to the degree of their readiness and comfort. On the first level, they would be able to barter trade whatever they have with any willing buyer on the system.
On the second level, they may become bulk purchaser / barter trader. They may be able to enjoy bulk discount. They are then able to receive a greater operating profits or benefits in the barter traded digital inventory.
On the third level, they can also participate in unearthing scalable & disruptive business models which would grow immensely under the incubation of Katalyst. From which they would receive greater financial rewards or benefits in the digital inventory.
2. Cryptographic Barter Exchange – Barter trading is already inherently legal in practically all jurisdictions. So it would be rewarding for us to implement the first cryptographic barter exchange all over the world.
With the inherent flaws of conventional barter trading made irrelevant by blockchain technology, it is about time to leverage on blockchain technology to empower more people in the world to participate in the global free market.
We believe as the first to implement a cryptographic barter exchange, we would be able to serve the unbanked all over the world. As long as they have access to a handphone and the internet, they would be able to participate in the global free market and improve their own lives.
3. Strict Compliance to Local Laws in Respective Jurisdiction – When it concerns deposits or withdrawals of legal tender currencies, strict compliance would be enforced to comply with the laws of the country of operations.
As far as Exchange regulations are concerns, the regulations predominantly deal with legal tender currencies. This is where logically we need to draw a line between barter trading exchange operations which are inherently legal and need no regulations and legal tender currencies related trading which have different regulatory requirements in different countries.
With the framework of Katalyst properly defined, it directly addresses the actual market gap and empowering more people to be involved in the global free market. It also allows the venture capitalists & private equity professionals to leverage on the gigantic growth of enterprise value for those companies which correctly leverage on the market gap addressed by Katalyst.
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