Businesses are, and always have been susceptible to manipulation, fraud and failure. The human interaction in business means that the system has always been fallible. Furthermore, on average, just over 50% of new businesses fail within the first four years. These failures stem from incompetence, lack of managerial experience, neglect, fraud, disaster and changes within the business environment.

Other areas of concern within larger corporations include disputes surrounding retirement and liability funds. The funds, usually set up at exec level are put in place to provide support and cover for those that work for the companies from the CEO, down.

Disputes occur for a number of reasons and often are drawn out affairs. Traditional judicial systems offer multiple methods of resolving these disputes which include negotiation, mediation, arbitration or litigation, all of which, cost individuals and company’s time and money.

A change in technology platforms used to track and monitor the funds often adds to the complexity of disputes, making resolution that much harder. The common denominator in most of these cases are people. Even with the best intentions and, in most cases highest levels of integrity, there are some who are motivated to cheat or corrupt the systems for financial gain.

In order to eradicate these shortcomings, a more robust and infallible system is required, one that cannot be cheated and one that is clearly auditable, transparent and legally compliant. The answer to these problems comes in the form of Distributed Ledger Technology (DLT) or as some refer to, Block-chain technology.

DLT is a consensus of replicated, shared, and synchronized digital data geographically spread across multiple sites, countries, or institutions. There is no central administrator or centralized data storage. A peer-to-peer network is required as well as consensus algorithms to ensure replication across nodes is undertaken. One form of distributed ledger design is the block-chain system, which can be either public or private.

Due to its decentralized nature, the block-chain cannot be cheated or corrupted by any one person. This in-turn builds trust and transparency for those that use it and in decentralized environments, reliable dispute resolution should be automated and swift.

One company doing exactly this is crypto company, xDAC. Founded in 2017 and built on the EOS block-chain, xDAC is the platform for creating and managing decentralized autonomous companies. It is a self-governed platform for profit-driven companies without geographical limitations. The focus of the platform is based on company creation and token distribution, it also establishes standards for decentralized businesses. Whether it’s taking full advantage of decentralized ledger technology, automated dispute resolution or security of stored information, the platform lets anyone create and manage any kind of company without the limitations of geography.

‘Decentralized dispute resolution has the potential to create a new industry of independent arbitrators capable of resolving business disputes faster than traditional judicial systems’.

The xDAC Solution, Liability Fund

The team at xDAC have leveraged the qualities of DLT to provide automated solutions for those operating businesses on their EOS block-chain. The xDAC Liability Fund is coverage in case the xDAC’s (company’s) debts or liabilities exceed a certain debt-to-equity ratio. It is calculated as a percentage of received payments stored in a separate wallet until a certain threshold is reached. The liability fund is not accessible to owners during the company’s existence and is available for transfer 90 days after the company is ceased or transferred to a new owner. When setting up a liability fund, xDAC advise to set a higher limit to avoid company freeze when small disputes are initiated. For example, if xDAC’s limit is set to 100 XDAC coins and customers dispute a transaction equal to 150 XDAC coins, xDAC will be frozen until the dispute is resolved. After a company is acquired, liquidated, or closed, a Liability Fund becomes a Retirement Fund and will be distributed between owners. This is based on their respective stake in the company.

The xDAC Solution, Retirement Fund

xDac’s solution means that team members will have automatically set up their own retirement fund on a second wallet where a certain percentage of their wages will be transferred accordingly. Profit from the xDAC platform will be distributed between xDACs and team members retirement fund based on their Team Member Rating (TMR). This will motivate team members to stay on the platform for a long time. Profit will stop being paid once a team member is not under contract. The Retirement Fund will be available for transfer after team member’s accounts is closed. If a team member wants to re-join the platform following account cancellation then the TMR restarts.

The areas above only cover a few of the vast offerings inherent within xDAC but highlight the profound advantages of using DLT versus traditional methods to execute business processes. Payment processing, identity management, project management and governance are amongst the vast service offering available within the platform.

Although technology has advanced exponentially over the past decade, business practices have stagnated but with the introduction of xDAC, this is likely to change. The future of business has arrived, people just don’t know it yet.