Virtual Codes and Intelligent Contracts
Smart contracts are agreements that are fulfilled automatically. So they reduce costs and time. They are handled by a virtual code and through computer programs. It works with software that works according to previously established activities. There is no need for any trusted intermediary, or notaries, or adopt a computer code, or ensure compliance with the instructions or instructions.
At the business level, the workforce is not homogeneous, but differentiated by the acquired skills or abilities. Some of these are specific and others are transferable between occupations, for this reason, a worker can not perceive the same gain as another in an organization. In the daily life, specific workers turn to the personnel who are already in the company, because they can acquire the preparation required with less effort and time than an individual from outside. Therefore, the labor market of these services is usually an internal market to the company. For this type of employment trustworthy personnel is needed, who cooperates with the company, and who possesses another set of characteristics that will hardly be objectively evaluated by means of a simple interview. At a wage level, the income of the workers does not vary rapidly to guarantee continuously employment because companies and workers maintain long-term relationships. Companies find it costly to hire and fire workers and train them, and workers do not find it convenient to accept and leave a job frequently.
In the virtual world the thing changes a lot, while contracts are established that last the time that we are doing an activity or generate income, companies and workers prefer to establish long-term relationships, which include agreements on wages and on the form of To deal with the variations in the amount of work that must be done and in the short term workers vary the amount of work they do according to the existing level of demand for goods and services produced by the company. Workers and companies expect the salary to be, on average, roughly the same as that of other sectors of the economy, so that the latter is rigid to the downside.
This practice explains why wages do not go down when there are unemployed workers looking for a job. To a large extent, it is due to the lack of effective competition of the unemployed, because if they were hired at lower wages than those who already have a job, a climate of discomfort and hostility would be created that would harm the work environment and labor relations. within the company. Consequently, wage negotiations are conducted exclusively with workers who have a job, that is, with those inside.
Furthermore, it should not be forgotten that most jobs are carried out by specialized workers who can not be replaced immediately by inexperienced unemployed people. For this reason, the downward pressure exerted by unemployment on the salaries of employed workers is relatively weak.
Thus, once labor contracts are established, wages are not altered to achieve equilibrium in the labor market in the face of the changing conditions of economic activity. Instead they produce changes in employment in terms of elimination of overtime, reduction of workdays or temporary layoffs. Companies, when they experience a reduction in the demand for products, prefer to suspend only temporarily those workers with whom they have long-term ties and not dismiss them permanently.
This is due to their attitude towards risk, the value of free time and, above all, the existence of unemployment insurance. This type of behavior helps explain relatively stable wages and variable levels of employment in the labor market.
If we refer to computer programs we can assume that these are not written in natural language, but with a virtual code. The fulfillment of these, are not subject to the interpretation of any of the parties, ie if event A happens then the consequence B will be launched automatically. So simple, so it reduces time and transaction costs.
Publicado en el blog de Cryptofera