Blockchain technology allows digitizing the monitoring not only of contracts but also of companies. This record records all the transactions and agreements made, as well as their successive updates or modifications. Unlike when working with a traditional application, smart contracts can program a pre-established flow of tasks between the interested parties supported by all the guarantees of trust and transparency that this technology provides.
Among the virtues of smart contracts are their transparency, traceability, inalterability and efficiency. Therefore, they are ideal for dealing with circumstances related to the employee-employer employment relationship, such as the administration of licenses, execution of wills, award of tenders, management of supply contracts, guarantee deposits, intellectual property rights and much more.
Thanks to the nature of the Blockchain, the information on dispositions or transactions can be tracked until it reaches its owners and the parties can check compliance with its clauses. Not only that, by using electronic signatures and being available online, there is no need to go to a common place, which also requires lower transaction costs.
At each stage in which the records are settled, a “block” is created with all its pertinent information, as if it were a new sheet of an accounting book that succeeds the previous one. As it is a decentralized registry, these entries cannot be altered, modified, stolen or disappeared.
The development and adoption of this technology offers considerable advantages for legal professionals. In Argentine contractual law, the general rule is the freedom of forms and of the parties to determine the content of the contract as long as it does not affect mandatory regulations.
Ensuring compliance with benefits in a transaction translates into less litigation and decompression of traditional means of dispute resolution. At the same time, it implies less ambiguity when it comes to enforcing the letter of the contract, since the execution does not depend on the different interpretations of the parties involved, also reducing the need to resort to intermediaries for its execution.
These technologies and innovations are already a reality and carry a transformative power for the entire legal universe. The digitization of our work has an enormous scope and allows us not only to optimize working time and the resources allocated, but also to guarantee greater efficiency, transparency and scalability. The digital revolution needs us to evolve with it.
CEO and founder of Brevity
Source: Ambito
