Smart contracts

All posts tagged Smart contracts

Increase customer success via smarter contracts

on March 14, 2022

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. 

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How to design your templates for smart contract adoption

on March 9, 2022

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.

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Smart contract vs smart legal contract

on February 15, 2022

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 contract vs Smart legal contract

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.

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A Beginner’s Guide on How Smart Legal Contracts Work

on February 4, 2022

Smart contacts are a great way of helping you exchange property, money, and shares without the fees, hassle, and services that come along with them. For example, when you go up to a vending machine, all you need to do is drop the money in and the snack or drink comes out. Same with the smart contracts.

A smart contract works the same way – all your need is to have the required token into the wallet and whatever you have paid for automatically gets deposited into the recipient account, making it so much easier and more efficient than a traditional contract.

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How to handle MBOs through smart contracts

on September 10, 2021

Management By Objectives – MBO programs can be easily automated and adjusted through smart contracts to provide a greater range of options to both the HR admin and the employees they are created for.

Reading time: 4 minutes. Photo by Jessica Lewis on Unsplash.

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How Smart contract tokenization rewards align your employees to your company

on September 7, 2021

Smart contracts have been designed to automate the execution of an agreement and allow parties to agree with the outcome of an event without the need for a central authority.

With the help of smart contract tokenization rewards, companies can effectively keep their workers in the loop and timely appreciate them for their efforts.

More and more companies are turning to smart contract automation, with the objective to overcome operational challenges and enhance employee productivity. 

Reading time: 4 minutes. Photo by Daniel J. Schwarz on Unsplash.

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How smart legal contracts can improve sales

on August 24, 2021

Ask anyone in the business world about their pain points and you’ll likely hear: sales and signatory management. Updating, monitoring, and managing lists is currently a time-consuming, inefficient, and error-prone activity for suppliers and buyers alike. At the same time, the painstaking process of proper signatory management is essential for establishing and maintaining business relationships, not to mention for ensuring compliance.

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