A Midasium Contract is simply a small computer program. It is a digital representation of the mutual agreements contained in a traditional real estate contract as lines of software code that self-executes and self-enforces. It has the power to move funds between bank accounts, transfer property titles and reconcile payments. At any time a Midasium contract can be converted to a traditional contract form for legal purposes.
The advantages of a Midasium contact over a traditional contract are:
- Trustless - The open-source nature of the Midasium contract means that it will execute exactly as the source code dictates. This allows one entity to confidently transact value directly with another entity without relying on a third party to stand between them and ensure that each honours the transaction agreement. For example, during a traditional contract of sale, a public notary will act as the intermediary to hold the property title as funds are settled. This is a significant feature that removes friction in traditional processes, creating efficiency, lower costs and increasing integrity.
- Autonomous - A Midasium contract exists on the Midasium Blockchain where it will self-execute according to the pre-agreed contract conditions without any direct human involvement.
- Self-sufficient - Midasium contracts are stored permanently on the Midasium Blockchain where they have all the resources permanently available to them in order to execute and remain in existence. Once published a contract becomes irrefutable, irreversible and unalterable. This means that all participates have very high confidence in execution surety of the process.
The innovation with Midasium contracts over any other smart contract technology is that are:
- Tailored specifically for real estate agreements and configurable to any real estate transaction.
- Legally binding and enforceable as they are convertible to a traditional legal format.
- No crypto-currency is used for processing payments, instead contracts interface directly with banking systems to process payments in real fiat currencies (USD, EUR, GBP etc).
Read more - Midasium Blockchain.