Imagine a world where none of the affected parties can manipulate or interpret a legal agreement in various suspicious ways; or a world where legal agreements exist that are executed automatically based on a set of defined rules. Think of a rental market or a hiring process, or any other business agreement, where you can use the same contract template over and over again. Only a few variables need to be changed, like a date and the name of one party, and perhaps a few more values. In today's world, a lot of editing and printing of documents occurs before such agreements become final. So why not automate the whole process?
This is what smart contracts set out to do. The idea behind smart contracts is to enable programmable transactions where no human interaction is needed. All of this is possible due to advancements in blockchain technology
where smart contracts in the simplest terms are scripts that run on a blockchain. Certainty and verifiability are provided with the automatic execution of smart contracts and the blockchain’s built-in accounting record of timestamped transactions.
Smart contracts can be written to reflect any kind of agreement logic which uses a data set for validation. The smart contracts have visibility across the blockchain network, and at the same time they take advantage of the security that blockchain transactions provide.
One step forward is the concept of intelligent contracts, which provide a human-readable interface so that you can create a template just like in a Word document. In parallel, a programmable code is automatically generated that is self-executable and coherent. Additionally, a fully new dimension is given to intelligent contracts with the ability to digitally sign
the agreements so that they become legally binding.
Ignite is involved in extensive research and developments to make such technology a reality. We are working to combine our knowledge of blockchain technologies, the Ethereum programming environment, Estonian e-Residency and digital signing capabilities, as well as our experience in building large scale business critical systems.
Let us know if you are tired of managing all your legal paperwork by hand, and would like to look into ways of making your contracts more intelligent!