Over the past thirty years, all the efforts applied by various governments to statal economies have been aimed at obtaining a free market regime.
At the heart of these political and economic moves there has been much debate about how a free market economy could be safe, responsible and transparent towards the subjects involved.
Each actor is related through a contract, but as we know there are, in addition to the correct subjects, some who are in default and the corrupt.
Corruption is the scourge of all economies, both developing and already under-developed.
In this regard, the MHCs (Minimum Hybrid Contract) come into play, but what or who are they?
In a very simple way they are nothing more than hybrid Smart Contracts. It would be more correct to define them as Legal contracts integrated with Smart Contracts.
An extraordinary idea, to say the least: the responsibility and transparency of Smart Contracts is incorporated under the control of human discretion!
In this way, the integration of the legal contract with the Blockchain as a regulatory tool and for the transcription of financial transactions provides transparency and immutability.
The use of the Blockchain minimizes verification costs as there is no need for any body to verify what happened.
As I said just above, the Smart Contract acts as a container, or rather as an arbitrator, for the correct execution of the legal contract. At this point no more controversy can arise:
if everything is correct, the Smart Contract will give consent to registration, otherwise it will fail.
Could it be enough? Of course not!
As we know Smart Contracts they are an integral part of the Ethereum Blockchain, they have no borders and they solve the problem of variegate jurisdictions.
Then, they create totally transparent cross-border transactions, at affordable costs!
MHCs (Minimum Hybrid Contract) offer transparency and immutability for financial transactions: the receipt of a transaction cannot be severed from the transaction itself.
This indissolubility provides a shield against forgery, so being defrauded with forged receipts is impossible.
The use of immutable and transparent MHC (Minimum Hybrid Contract) transactions for cost accounting can reduce the risk of illegal activities.
As we all know, recovering financial information has significant costs and, in some cases, it is cumbersome and not always reliable.
Here with the MHC, the costs are lowered enormously, because this information is present on the Blockchain consequently there is no need for people dedicated to finding the information.
Clearly, regulation on the use of the Blockchain will be needed in order to have a habitual adoption of MHCs.
I insist on the fact that the regulation must be carried out on the use, as the operation cannot be changed.
Decentralization is an essential factor of the Blockchain to have maximum immutability and the fact of being public increases the transparency of the whole system.
Privacy factor is the last but not least factor, in fact it will be necessary to find a balance between the private and the transparent.
Well, how could they help our countries to overcome this crisis?
It is easy to say.
As we all know very well, the ugly flaw in today's socio-economic structure is that the money allocated for subsidies arrives decimated.
Let us consider the Italian situation, for example.
In the specific case of this pandemic, there is much talk of the ESM, this fund to which Italy also joined in 2012 and which serves to help states in economic difficulty.
The Lockdown originating from this pandemic has certainly created the basis for being able to appeal to this help, but I want to be a bit like the Devil's Advocate.
Imagine that a friend of yours, a wasteful by nature, asks you to borrow money to pay the electricity bill otherwise he will remain in the dark.
Clearly it is a situation of necessity, but you are struggling to give him that money as you are not sure: are they going to be closed or squandered?
The same thing the ECB might think: are we sure the funds we allocate will go to their destination?
Despite, then, the European Commission designs a tailor-made financial aid to repay the debt.
Well let's assume that we access the funds of the ESM, and make sure that it is integrated by a Smart Contract, then we sign an MHC with the EU.
All transactions ranging from the EU to Italy are certified and transparent.
But that's not enough.
All grant applicants will need to sign an MHC so that transactions are transparent.
Here in this way you know what happened to the money of the community and certainly they cannot have taken different routes as, before making the transaction, the Smart Contracts would verify the legitimacy of obtaining the subsidy.
In addition to the fact that they can be verified in Real Time by the appointed European Commission bodies.
In this case, of course, we cannot speak in a more absolute way of Privacy, as it is the right of every citizen to know what kind of money the grant is making.
In all ways, MHCs are not fictional, they exist, they are tangible and their implementation could really change a situation of corruption.
What do you think of it? What institution do you think should be the first to adopt them?
