“Smart contracts are computer protocols that facilitate, verify, or enforce the negotiation or performance of a contract, or that make a contractual clause unnecessary. Smart contracts usually also have a user interface and often emulate the logic of contractual clauses. Proponents of smart contracts claim that many kinds of contractual clauses may thus be made partially or fully self-executing, self-enforcing, or both. Smart contracts aim to provide security superior to traditional contract law and to reduce other transaction costs associated with contracting.”
We’ve spoken about the Value Fabric and how it is already impacting the business models of CSPs around the world. The myriad of product and services suppliers to those CSPs all have contracts to fulfil.
Administering these contracts is already a logistical challenge, particularly when there are complex conditional trees or when there are large volumes of notifications, acceptances, penalty clauses, payments and asset transfers.
In a world where CSPs are reducing internal workforces and relying more on external suppliers to innovate, design, build, manage and maintain their networks / services, the administrative load is trending upwards.
Smart contracts hold great potential to automate the execution of the contracts stemming from a value fabric business model. Sounds like another operational and business support system to me (albeit non-traditional). Smart contracts also have the potential to automate the micro-RFP to get defined (and oftentimes repeatable) activities done.
Smart contract evolution is the main reason I am paying such close attention to the evolution of blockchain tech.
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