Dale Montrone

Blockchain Powered Digital Contract: Executable Vs. Non-executable

Blog Post created by Dale Montrone on Feb 21, 2018

In a “Digital Contract”, the terms of the agreement between two contracting parties or entities is directly written into lines of software code using a programming language like C or Solidity [1].

 

 

A digital contract can be executable or non-executable.  The non-executable contract is nothing more than a software version of a contract written in a spoken language like English.  The advantage is that it can be verified using a simulator and “what if” scenarios can be investigated.  The enforcement of a non-executable digital contract needs to be done manually, as is the case currently with contracts written in spoken language.  However, the advantage is that a digital contract is easy to write, edit and verify using a simulator and lends itself to playing “what if” scenarios either before the fact or after the fact.  An additional advantage is the fact that an audit trail can be kept within the historical database as is done manually using an open source or proprietary version control software tools [2].

 

A digital contract can also be an executable contract (or a “Smart Contract”) wherein the execution is done using a platform like Ethereum or Hyperledger as opposed to requiring manual intervention.  The industry is very rapidly trending towards the use of Smart Contracts for applications like energy sharing [3].

 

A digital contract can be converted to a Smart Contract, using platforms like Ethereum.  DomaniSystems’ Decentralized Collaboration and Integration Platform (DCP) is ideally suited for creating Smart Contracts.  

 

The use of Smart Contracts permits trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central authority or external enforcement mechanism. Smart contracts render transactions traceable, transparent, and irreversible [4]. As pointed out earlier, a Smart Contract can be enforced using a Blockchain Network like Ethereum or Hyperledger. The concept of the “Smart Contract” is gaining popularity [1], [5], [6] for applications in Energy Sharing, Asset Tracking, Financial Products, Healthcare, etc.

 

A practical example of the application of digital/smart contracts is a recent trial in Australia for peer-to-peer energy trading among consumers and utility companies [5] that will essentially enable the consumers to buy and sell energy to and from their neighbors.

 

Our goal in DomaniSystems is to incorporate in our DCP the capability to create, collaborate, verify and negotiate both traditional and digital contracts.  We also intend for the DCP to have a Smart Contract conversion and deployment function.

 

DomaniSystems Update

 

If you are a Medium fan, we now have our Blog hosted at https://medium.com/@DomaniNews. Check it out and follow us and leave a few “claps” and contribute with a community comment!

 

We have established a good presence on a number of the top ICO Tracking websites and we continue to add more. Checks us out or track us on: ICOALERT, ICOListview, ICO TRACKER and BLN4KCODE.

 

Here is a quick update on our Roadmap and Development Plan: We’ve made great progress and we are on schedule to have our Integrated Development Environment (IDE) 1.0 ready for our customers as published on our Website and Whitepaper.

 

For more details about DomaniTokens, visit our Website at https://domanisystems.com.

 

References:

[1] Online Reference: https://solidity.readthedocs.io/en/develop/

[2] Online Reference:  https://en.wikipedia.org/wiki/List_of_version_control_software

[3] Online Reference: https://www.pwc.com/gx/en/industries/assets/blockchain-technology-in-energy.pdf

[4] Online Reference: https://www.investopedia.com/terms/s/smart-contracts.asp

[5] Online Reference: http://www.zdnet.com/article/origin-energy-trials-blockchain-energy-sharing-initiative-with-power-ledgerhttp://www.zdnet.com/article/origin-energy-trials-blockchain-energy-sharing-initiative-with-power-ledger

[6] Online Reference: https://golang.org/

 

We encourage open discussion on Smart Contracts, Blockchain, Security and IoT for mutual benefit and enhancement of knowledge and understanding.  You can start your discussion or questions here.  You can also contact us directly; all the information is on our Website.

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