What is Digital Barter Economy?
Let's find out Digital Barter Economy meaning, definition in crypto, what is Digital Barter Economy, and all other detailed facts.
One of the most known examples is when influencers exchange their advertisement for a free product of that kind.
Early civilizations used common agreed-upon products, such as animal skins or salt, as a form of money that people could use to exchange goods and services.
The digital barter economy is quite adaptable, hence it is theoretically achievable to pay for that advertisement with a revenue share token or a tokenized fragment of a famous painting.
Furthermore, it functions as a means of trade, similar to fiat currency, and is one of the oldest and most organic kinds of economic activity in the history of mankind. Even though this works fine in a small context with physical proximity, it does not operate on a broader scale due to evident distance concerns and an absence of conventional units of measurement.
Blockchain enables the possibility for people to digitize physical products and services with tokens, and it solves the issue of physical proximity in that manner. Speaking of the example mentioned above, individuals can pay their advertisement token with the product token from anywhere around the world.
Both tokens are virtual, serve as templates for the actual asset, and can be redeemed for goods or services. In addition to digitizing actual products, blockchain strengthens digital trade by allowing users to swap tokens they already have for the token they desire.
Digital barter uses blockchain techniques to deliver the fundamentals of the old physical barter economy into the 21st century, giving answers to the physical and conventional unit hurdles that prevent trading at volume.
Moreover, an additional upgrade is that digital barter economies can have products that are not physical (a patent of intellectual property), or large products that can’t be used as means of payment in their physical form.
When digital assets are generated on the blockchain, they can basically be fractured digitally, which would be impossible in the real world due to the destruction and devaluation of the underlying physical commodity.