Photo by Alexandra Gorn on Unsplash
If you work at a large enterprise, you know business ecosystems can get complex.
With larger deals come more parties involved. Your clients may act on behalf of other parties, your suppliers subcontract third parties. Numerous flows of goods, information and money need to occur for products and services to be delivered.
With liability scattered among multiple parties, the contracts reflecting all those transactions and agreements also grow in complexity. Companies need a trustworthy business ecosystem where they can operate in confidence and manage contracts efficiently.
Smart Contracts operating on the Blockchain provide just that, but how to start using them?
Let’s start at the beginning.
How do Smart Contracts work?
Ironically, smart contracts provide a trustworthy ecosystem by removing the need to trust any of the parties of a contract.
A smart contract is executable code that triggers transactions without human intervention. Examples of transactions are payments or transfers of information. When a contract operates on the distributed ledger of the Blockchain, there is no need for a trusted third-party to own and execute the contract.
For those who still struggle with the concept of Blockchain, it suffices to say that it is a shared unchangeable ledger of transactions ordered by time. What makes it special is that every participant of the network has a copy of the whole database – that’s why we say it’s ‘distributed’ or ‘decentralised’. Therefore, there is not one single entity who holds the ‘true’ version of the ledger (unlike, for example, your bank telling you the amount of money on your account).
Trakti is the only end to end negotiation and contract lifecycle management platform fully integrated in the Blockchain. When a signed contract is registered to the Blockchain, it gets a unique ‘hash’ or code that identifies it. Since the Blockchain is publicly available, anyone can refer to it to prove a document’s originality by comparing its hash to the one stored on the Blockchain.
Smart Contracts for trustworthy business ecosystems
Companies dealing with complex contracts can use smart contracts to bring transparency to their contracts, as they are accessible by anyone.
Customers and suppliers can also connect other parties or services on the same contract, all in complete transparency. But don’t worry: when you create a contract on Trakti, it will always be controlled by you, as the owner of the initial contract, and your counterparty.
Another way in which smart contracts build trust is by automating transactions on both sides. This provides security to the process, and additional benefits such as being able to obtain more reliable cash flow forecasts.
Therefore, by operating with smart contracts on the Blockchain, your company can minimise the risks derived from dealing with customers and suppliers.
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In short, it’s important to create an ecosystem of trust to deal with both clients and suppliers, and smart contracts can do just that. Trakti takes the complexity out of that with a simple and collaborative contract management platform.
We created Trakti to streamline smart contracts end-to-end: from drafting to payment. Start creating efficient and transparent business relationships today with a a 14-day trial period.
