The development of smart contracts heralds a major transformation of today’s business processes. Given the rapid growth of innovative technologies, it’s hard to imagine that current execution of legal contracts will not be automated or digitized.
Powered by the blockchain technology, smart contracts have the potential to transform commercial and financial agreements, making relationships between the parties more economical and efficient. Unlike traditional agreements, smart contracts are more trustworthy due to the decentralized nature.
In addition to higher transparency, the technology allows organizations to significantly reduce time and costs by avoiding third parties. Instead of relying on a central system, smart contracts use blockchain to store and verify contractual rules.
The term ‘smart contract’ was created back in the 1990s by a legendary cryptographer Nick Szabo, who defined it as a computerized transaction protocol that executes terms of a contract. The first example of the concept was a vending machine, which accepts coins and dispenses the product and change without any human participation.
The potential use cases of the technology include the sale of services and rights, including commodities, digital rights, and personal property. They can also be applied to peer-to-peer platforms like securities exchanges or any other type of business that requires middlemen for payment processing.
Confideal is a unique platform, providing users with a secure and simple way of making agreements based on the Ethereum blockchain. The startup aims to solve the key problems of current contractual processes, such as the risk of forgery, time delays, and high cost of arbitration procedure.
By offering pre-written smart contracts, the platform enables users to create deals without the need for any form of programming skills.
Its smart contract constructor app allows users to set the terms of a transaction, thus acting as an impartial escrow agent, where the terms of the deal and the money are stored until the contract is fulfilled.
“The terms of the contract are established before it is signed and are stored on the blockchain. That is why it is impossible to change its terms after both sides have agreed to them. The contract can only be closed or broken according to the original arrangements,” the company said.
In case of disputes, personal data of the parties remains unknown, with the arbitrators accessing only their digital wallets.
Confideal is designed for a wide range of applications, including international supply deals, employment contracts, and cryptocurrency-based escrow services for real estate agents. Besides, it can be used by miners to develop equipment supply contracts and cloud mining power rental contracts.
After successfully completing its pre-sale, which brought the project about 650.000 USD, Confideal is preparing to start an ICO on November 2, 2017. The sale of tokens will continue until November 22, 2017.
The total supply of CDL tokens is 100,000,000, and 1,000 CDLs will be sold for 1 Ether, the native currency of Ethereum. The ICO of Confideal will employ a bonus system whereby early investors in the ICO will be rewarded with bonus Ether.