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Welcome everyone so I wanted to do a another use case video and this other

use case that I have is in regards to government contracting so government

contracts is something that I'm very familiar with. I'm very familiar with the

process of how governments pay contractors whether that be

subcontractors or prime contractors so depending on what organization that

you're working with if you're working with the Department of Defense or are

you working with the USDA, or you're working with the EPA if you win a contract with

these particular organizations first of all it's very convoluted process but the

payment structure it's usually like a Net 30 so you have a portal and you

basically invoice the government and they have 30 days to pay you from that

particular time and this is very difficult for small businesses so you

know they usually go and get some Small Business Administration loans or

third-party loans that are usually have some sort of interest tacked on to them

you know whether that's a few percentage points all the way to like 10%, 20 % it

depends on how lucrative the contract is and how much money you want for that

particular contract but it's usually a whole thing about that whole credit

dilemma you know it's hard to get a government contract unless you're ready

to really put your foot out there but if you're ready to put your foot out there

you may not have what it takes to actually put your foot out there so it's

sometimes a leap for a lot of these small businesses and the thing is

waiting that 30-day period it really ties up the liquidity so your business

is really a 1 faceted business it's like you've just focused on government

contracts you really can't spread your money elsewhere until you get paid in

that next cycle and the process repeats itself over the years you may

get added liquidity and that's going to allow you to expand your business, but it

takes a while. I was thinking about smart contracts in the use case of allowing

contracts to be broken down into pieces so say you are

doing a a certain contract an aviation contract or a janitorial contract for a

foreign organization so you're cleaning the buildings and you know

you're getting your supplies, you have your workers cleaning one floor,

another floor however you're structuring the contract and you know the

contract is probably for a year and instead of billing the company or

billing the government organization every month if the billing was

more automatic and you could set some kind of timetable okay the floors were

cleaned today or this was clean this was the percentage done is this you know I

accomplished 20% of the task and given to me today

You could put that on the blockchain and you can

automatically get those funds distributed in smaller pieces it would

allow for increased liquidity from both sides, so the government wouldn't have to

give you this lump sum after 30 days after the completion of the contract

they could give you little small pieces and the small business could receive

those little small pieces and correctly fund their workers without taking these

high interest predatory loans and they could automatically use that to

fund their business and they could use that to expand their business there's so

many different ways in which that added liquidity could allow

businesses to grow I mean there's such a constraint for small businesses to grow

it's hard it's difficult because it's there's so much to take that next step

to get to the next level you really need not only do you need your

foot in the door but you need to be able to have that cash flow growing, growing,

growing, growing, growing and you know like I sometimes think that it's

a giant collusion scheme because the government is doing that they want you

to take those high interest loans and then you have to go to the bank, open up

a line of credit, and the bank's love to give you a hard time with line of credit

you could say that you have a contract for X amount of dollars and

show the contract to the bank and they're still giving you X minus

ten of whatever you're asking for they're always giving you a hard time

always giving you less line of credit than you need even if you have the

contract in front of you it's like you need to prove yourself well how do I

prove myself if I can't take that step forward and

this is where smart contracts can take us to the next level, revolutionizing

small business you saw it on Marlowe. It's supposed to be for the institutions, the

mom and pops, I think it was called businesses and sons it's for those small

businesses to really increase their liquidity, really increase what they can

do their capabilities. This country is run on small and medium enterprises and

you know of course we have the behemoth enterprises but if we're really trying

to promote a healthy economy if we're really saying that we're all about small

business we're all about this I don't know American dream the idea that

someone can build their business and you know support their family it's not

necessarily about turning it into a large enterprise but this support

themselves you know and taking a high interest twenty percent loan to

get your first contract and taking twenty percent out of your family's

mouth when you are really trying to make it, it's not the right way to go so you

know I think that smart contracts could allow for more accountability it could

make this if you put the contract on the blockchain and you provide these

time tables okay this deliverable was met you get an automatic small payment

for this you get an automatic small payment for this you get an automatic

small payment for this you know I've just purchased janitorial supplies this

fits this quota and you piece it and then you know money gets transferred,

transferred, transferred, transferred, and I think that could be that would be

great that would be great and this could happen in the in the Fiat system and you

know it that doesn't necessarily mean that people have to be transacting ADA

but in the future ADA is going to have a lot of use cases or benefits to actually

holding ADA you know you're gonna probably be able to stake your ADA at

the exact same time that you're performing this contract which will

allow you to actually reverse this entire process so instead of getting a

high interest loan maybe safeguarding your money in a way that will provide

you interest overtime so it will allow your small business to grow and you can

tap into that liquidity pool whenever and interoperate between that native

cryptocurrency and your general fiat system so if you need the dollars real

quick you can get into that or you need euros real quick or you can get into

that it's quick and I think that this is where we're going I think

this is where we're going we're going towards this ultimate interoperable

cryptocurrency and there are a lot of cryptocurrencies out there it's not

gonna be a winner-takes-all, but there are huge advantages to Cardano

and they're they're smart contracting platform I'm very excited let me know

what you think let me know if you have any use cases of your own and

until the next video please like, comment, and subscribe and I appreciate it.

I appreciate you.