All posts tagged Smart contracts
Evolving your procurement strategy with relational contracts can be used to increase contract standardization and visibility across the entire supply chain – ensuring contracts are managed appropriately to secure supply and value for the organization.
Reading time: 3 minutes.
Read more
If you are following blockchain & bitcoin news closely, you must have noticed something about many billion-dollar companies, as well as Fortune 500 enterprises. They have officially jumped onto the blockchain bandwagon and are working around the technology.
There is a simple reason for this.
Reading time: 3 minutes
Read more
Establishing solid relationships with partners, vendors, and other actors is essential to your business. Since contracting and compliance go hand in hand, contract compliance in contract management is important and needs to be done right.
Reading time: 3 min
Read more
Since the global financial crisis in 2008, economists started to rethink alternative and new forms of cooperation and economic systems capable of cutting off third-party intermediaries and ensuring direct interaction between peers. The digital revolution has triggered a disruptive diffusion of the internet, technology, online communities, and new technological platforms. The sharing or collaborative economy is one economic system where assets and services are shared between private individuals and it is often facilitated by an online platform. Solutions based on blockchain technology as Smart contracts have started growing.
Reading time: 5 minutes
Read more
New contract management solutions are popping up all the time. This push towards new technology makes it hard for businesses to tell a platform with real merit from a flashy gimmick. It’s easy to get lost in a sea of endless choices. But the long and short of it is this: Companies that understand the benefits of blockchain and other technology will likely be positioned to increase customer success via smart contracts.
Smart contracts and blockchain technology are relatively new developments in contract management. So far, we have seen the adoption of smart contracts help with MBO programs as well as make contract negotiation and renewal a snap. Making the process of signing a contract easier for clients is one way to keep everyone on track as well. Perhaps most importantly, the fast transfer of reliable data through a blockchain and the ability to automate payment and contract execution also drastically reduce the amount of time it takes to get paid.
Read more
Legal drafting is changing. And legal design for smart contract is part of the equation.
Smart contracts and legal design have marked the transition to an approach that conceives the contract not more as a means of defense but as a functional one, as a means for achieving the purpose; in short, a result-based approach. So how we can use legal design principles to organize our templates for smart legal contract adoption. Let’s have a look!
Reading time: 4 minutes.
Read more
The concept of a ‘smart legal contract’ is an inseparable part of discussions about the future of legal practice. The offerings that technology can provide to streamline legal services for businesses are truly invaluable.
The obvious question must be, what is the difference between a smart contract VS smart legal contract?
We will look into various aspects of smart contracts and smart legal contracts and try to reach a conclusion and hopefully, you would understand what the major differences are.
Exactly what a smart legal contract looks like, the nature of its capabilities and potential applications in practice have remained relatively obscure. This article will revisit basic concepts of smart legal contracts, explore a current case study, acknowledge hurdles to wider use and address future possibilities.
Smart legal contracts are different from the so-called “smart contracts”, which are self-executing scripts that necessarily operate on a blockchain system. Smart contracts may form part of a smart legal contract or smart document but do not represent the agreement in its entirety.
Fundamental to the concept of a smart contract, and the main driver of efficiency through faster processing times is the automatic performance of aspects of the contract without the need for human action or verification. A foreseeable outcome of this is lower transaction and operating costs compared to traditional contracts.
However, it is not just about efficiency. Smart legal contracts can also provide greater certainty and trust between the parties, particularly when incorporating blockchain or other distributed ledger elements which ensure the immutability of input data.
Smart legal contracts contain natural language text with relevant provisions of the document drafted in machine-executable components, that is, programmable code. The programmable elements interface with external sources of data (so-called “oracles”) (such as Internet of Things device data) or other software systems. The oracles drive the real-time status of the contract, for example, by enabling clauses to self-execute if the external data shows that specified contract conditions are met. The contract sits in a real-time digital environment – a website, platform or app – that each party can log in to and view the current status of any relevant terms.
The creation of smart legal contracts also requires a multi-disciplinary approach. Both lawyers and coders must understand and respect the other’s role and work collaboratively to achieve an effective design.
Standards can also play an important role in promoting the uptake of innovative technologies and have a role to play with the adoption of smart legal contracts.
“Standards and other publications…can improve the reputation of innovative technologies and lead the way in describing best practice. Developing and setting standards requires consensus, which encourages an international community of experts to share, collaborate and agree.”
If we want to see wider adoption of smart contracts and smart legal contracts, we need an effective governance framework via the further development of international standards. Governments and companies have significant potential to grow awareness about, confidence in and legitimacy of smart contracts in both the public and private sectors. This is particularly the case given the cross border nature of smart legal contracts, which can make it difficult for sovereign legislators to regulate them.
Learn more about Trakti’s features here.
Read more
