Contracts are the backbone of an enterprise. The digitization of paper-based contracts onto the blockchain holds the potential to revolutionize the way contracts are prepared, transacted, amended, stored and complied with.
A decentralized repository will digitize paper-based contracts, eliminate the need for physical storage space, and cut paper and environmental waste.
Data storage devices can fail. Smart contracts will duplicate all transactions so that all parties have a record of the transitions. The likelihood that all parties are going to suffer data storage failures is practically nonexistent.
Smart contracts will reduce or eliminate reliance on third-party intermediaries that provide “trust” services such as escrow between counterparties.
Processes enabled by smart contracts require less human intervention and fewer intermediaries and will therefore reduce costs.
Lower execution risk
The decentralized process of execution virtually eliminates the risk of manipulation, nonperformance and errors.