Blockchain and Contract Management the Perfect DUO
Blockchain is the new need of every business, it is widely known to simplify payment services making them, secure and affordable. Besides payments, encrypted ledgers provide real-time confirmation of transactions without the need for intermediaries such as Intermediary banks or clearing institutions.
The evaluation of a distributed ledger is one of the basics for comprehending the blockchain. The blockchain offers a Decentralized Database, or “digital ledger,” for transactions that everyone on the network can access, using encryption to keep trades safe. This network consists of a collection of computers that must all agree on an exchange before it can be verified and documented.
Blockchain undoubtedly changed the world of currencies and payments. But Blockchain or better (distributed ledger technology) has much more utilities than cryptocurrency. Such features of blockchain as transparency, immutability, enhanced security, distributed ledgers, consensus, and faster settlement make it a perfect instrument for Business Intelligence software.
And the current trend of replacing conventional currencies like USD, Euro with Bitcoin and Etherium. Business Intelligence giants like SAP, Oracle, and MS having new challengers providing more transparent, blockchain-based software.
No other category of business intelligence software is impacted more than contract lifecycle management and digital signatures. New companies like German-based INHUBBER challenging the status quo of contract management in businesses with their blockchain and AI technologies.
Surely the key game changer to make it possible are smart contracts. Smart contracts are simple programs that run when predetermined conditions are met and are stored on a blockchain.
They’re generally used to automate the execution of an agreement so that all parties may be confident of the conclusion right away, without the need for any intermediaries or time waste. They can also automate a workflow, starting the following step when certain circumstances are fulfilled.
Smart contracts eliminate the requirement for a central authority, legal system, or external enforcement mechanism to carry out trustworthy transactions and agreements between distant, anonymous participants.
Tasks are performed by a computer network after meeting the conditions previously described and verified. These procedures may include payment to the right people, registering a vehicle, sending notifications, or extracting text. The blockchain is updated after the task is completed.
In a smart contract, there may be several procedures needed to persuade parties that the work will be completed successfully. Stakeholders must agree on how transactions and related data should be represented in the blockchain. Establish needs, evaluate any potential, and provide a way to resolve disagreements.
The smart contract can then be created by a developer, however, companies that utilize blockchain for business are increasingly providing templates, web interfaces, and other online tools to make smart contract structure easier.
So the ultimate vision of INHUBBER is to automate contract management with smart contracts without any need for external developers. Making classical contracts transparent and simple to enforce reducing human error, fraud, and amount of litigations, etc.
Smart contracts are a significant step to intelligent contract management solutions.
On its quest to challenge the giants like SAP, Oracle INHUBBER is heavily leveraging blockchain and AI. The R&D company has taken Etherium based private blockchain and used it to provide besides contract automation a world’s leading security, and a digital signature for virtually any file format and business process, like IoT or sensor interactions with contracts. So e.g. client’s contracts are 100% secure through a blockchain-based key, which is used for encryption of the documents.
How secure is blockchain:
Blockchain-based digital signature combined with German-made KYC creates a trusted network that can be flexibly extended globally.
All documents, versions of documents, changes in documents are registered in a blockchain-based audit trail, which makes faking of signatures and altering of documents impossible.
Because the blockchain makes it possible to store documents 100% hacker secure. Companies have the convenience of cloud-based contract management and digital signature platform. This way the 100% security allows IHNUBBER to offer its customers a variety of AI-based features to analyze and automate their contracts.
So users don’t need to read contracts, AI helps them to search for relevant information, to recognize key milestones, dates, amounts. Ultimately all key milestones are converted in the calendar reminders. INHUBBER software makes missing deadlines, milestones, and obligations impossible. Just imagine on average a business loses around 3000$ per commercial contract on managing it.
And bad contract management can cost a business up to 10% of its annual revenue.
Considering these numbers, just by not missing one contract extension or termination reminder INHUBBER users cover the cost of the platform and get a great ROI on the solution. Not to mention the costs saved by legal, procurement, sales departments.
The employees can use their time to perform work, and not on searching for the latest contracts, reading complex texts just to find the termination deadline, etc.
In the end, with blockchain-based contract management solutions, there will be no need for mediators. Details can be exchanged between parties regarding the contract. Details may be associated with a transaction or other part of the agreement.
Also, there is no limit to how many groups or peers can interact with each other. This eliminates a lot of waiting time for contracts to be approved, notarized, or monitored for performance. In traditional settings, a contract may be terminated due to the non-availability of the party. This simply does not happen in the smart contracts used by contract management solutions.
Lack of mediators also means faster transactions and fewer frauds. One of the most obvious changes that will be made by the Contract Management Solution blockchain is making it more efficient and cost-effective.
Just like this with the help of the blockchain INHUBBER provide a digital signature, apply the principles of “Single Source of Truth” and identity assurance. On the INHUBBER platform, all communication and document sharing is E2E encrypted utilizing blockchain technology. White-box AI provides consistency and makes contract compliance and execution easier.
Smart contracts bring flexibility, which saves time and costs associated with contract management. With Contract Management Solution Blockchain, teams do not have to wait for mediators or any other system for their contracts to proceed.
This may be because blockchain keeps track of everything else that is being done. In doing so, previous actions are used to confirm new ones – to make them confess faster and more quickly. The function will only work if the pre-fulfillment conditions are met.