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How smart contracts will change your business ?

Agreed between two or more parties in order to bind them by obligations, the regular contract is a legal document endowed with a certain sacredness. It remains frequently a paper document produced in two copies, printed and signed by hand by the contractors.

However, with the arrival for nearly two decades of new technologies applied to service activities and, more recently, the development of legaltech, the traditional contract no longer makes sense. Legal departments, accounting firms, notarial entities and business managers offer their clients these new types of enhanced contracts: smart contracts. How do these smart-contracts work? What are their advantages and to what extent do they help to be more effective in carrying out their activity?

alf experts offer you an overview of smart contracts. Whether you are a legal professional or a company manager, if you want to boost your business, you should consider use smart contracts.

Reliability, efficience, savings : the advantages of dematerialization

Since March 2000, law stipulates that the electronic signature has the same legal value as the handwritten signature, conditionally upon a rightful identification of the signatory and link with the act concerned. Electronic signature is based on an electronic contract verifying the integrity of the document and its signature.

For various documentation, such as confidentiality agreements, contracts, agreements and invoices, the electronic signature is a smart choice. First, you achieve savings (travel expenses, cost of printing). Second, you are way more fast since your client can sign the document from any place, at any time and in a few clicks. Indeed, the electronic signature meet the current challenges of mobility and environmental protection in an internationalized environment.

The superiority of the electronic signature over the handwritten signature

The electronic signature has many advantages. In fact, it has a superiority over the handwritten signature because it proceeds from a secure computer protocol set on a precise moment and for a unique signatory. Therefore, the electronic signature is unalterable, unfalsifiable, non-reusable.

Several options can be proposed to your client authenticate his identity, which brings a certain flexibility to the process. The electronic signature does not only apply to administrative and legal documents. It can be to secure email exchanges, payment of invoices, access to sites, response to calls for tenders, etc. As proof of the effectiveness of the smart contract, most of today's key players, in the field of insurance, banking and training sectors, systematically offer their customers the option of signing their documents electronically.

The new uses of smart contract and opportunities with the blockchain

Smart contracts offer interesting uses for legal professionals. Thus, you have the possibility to receive automatic alerts for customers who have not signed the expected documents in time. Also, you can set automated workflows for signing documents. You can integrate smart contract with the tools you already use, such as your cloud and tour commercial CRM.

Thanks to the APIs (programming interface), you can build tailor-made smart contracts and integrate a signature module to your document. At alf, we are sure the future of the legaltech lies in the use of the blockchain. This decentralized technology makes it possible to authenticate each document and keep track of all transactions without going through a third party.

To conclude, today, the paper document signed is relevant for specific cases, often relating to notarial acts. On the other hand, the electronic signature, reliable and falsifiable, allows to save money, gives peace of mind, by concluding and sign any agreement without time or place constraint. Also, let’s take a closer look at the possible benefits of smart contracts for your business: through the creation of customized signature modules to add to your documents, and automation of your workflows. At alf, we work with Docu-sign, leader in the field of electronic signatures, to offer you and your customer the best experience. The smart contract era has begun, join the movement!