Blockchain is here to stay. It is a very common phrase among technology enthusiasts and users. The variety of uses has made it such an important technological advance that billions of dollars are invested in the development and innovation of its qualities.
The implementation of blockchain in various industries is already a fact, the solutions that were offered in areas such as finance, health, logistics and automotive. The legal sector has also been implemented.
Contracts are an agreement, usually synalagmatically perfect, in other cases the contracts are oral. Since the beginning of the global legal system, contracts have developed in parallel with the applicable laws.
In this way, the preparation of contracts according to the applicable regulations developed promptly. However, all of these developments have retained an almost intact variant: intermediaries. This limit must be exceeded for intelligent contractsBecause at the beginning of the programming of intelligent contracts, a basic principle of private law is generally taken up, which is known as the principle of the autonomy of the will of the parties.
This is how intelligent contracts emerge in an era of technological development. Providing an automated understanding solution in an area where intermediaries are a constant for every legal transaction.
The acquisition and merger of companies or consortia takes a lot of time and effort. The details of the negotiations and their implementation in documents are a legal task for lawyers.
With smart contracts, however, this situation changes suddenly. Codifying a number of conditions to automate processes is an important advance in this area. Many processes depend on human intervention, but since the process is digitized and automated, mergers or acquisitions are mostly safer.
This arises from the fact that the programming language of smart contracts is essentially a set of conditionsand to automate the legal transaction, only the conditions need to be met, creating a data store on the network that then generates an automatic activity that triggers the fulfillment of another condition.
The benefits that this type of technology brings to the legal field are undoubtedly based on minimizing human error. Ensuring legal transparency is perhaps the most important element. The invariability of the information creates legal certainty for the parties.
Therefore, this disruptive technology not only enables companies to cross borders without the need for a transfer for legal business verification purposes only. A merger, for example, creates enormous work, analyzing documents, drafting agreements, temporary actions, and change actions that ultimately result They can be reduced to a programming mode that generates standardized agreements or resolution protocols if the conditions are met.
In fact, automating these contracts is a little easier than you might think. The points to be checked are basically standardized for the merger or acquisition of a company or consortiumTherefore, the previous agreements are usually also standardized so that the particular change in the terms of the agreements would change the smart contracts at the will of the interested parties.
Programming the contract so that a machine can read and process it, but at the same time it is a text that can be analyzed by the participants. It is something that the blockchain has made available to everyone.
The immutability of the information registered in the network creates, as already mentioned, legal certainty for the parties, since Once the information has been added, it cannot be changed. This rightly guarantees the legal certainty of the parties involved.
Pilot programs based on smart legal contracts already exist in Latin AmericaOne of them is in Argentina, where a group of silver lawyers has created an ecosystem of smart contracts for services such as freelancers. However, other types of contracts can be added to the platform.
Despite the fact that one of the purposes of using smart contracts in this area is to spread third parties in the processes, it is also true that people still need third party confirmation to trust this type of ecosystemPlatforms like the one mentioned in Argentina therefore have arbitration in the event of a breach of contract.
From the simplest sales sale or an intermediate employment contract to third parties for preparation or for its validity, but always tied to an intermediary.
With the use of digital currencies in the blockchain, not all transactions could be tracked and also saved in the distributed general ledger. A distributed ledger can be shared between different users in a blockchain network.
The use of intelligent contracts is expected to automate various mergers and acquisitions tasks. Blockchain would make the process faster, more confidential and more direct. Also, not much validation is required, and even if certain conditions are met, the transaction will go through.
Smart contracts could replace profits in acquisition and merger transactions and provide an example of how blockchain can revolutionize infrastructure. The result is considered essential. Smart contracts for mergers and acquisitions will significantly reduce the risk. In addition, all earnings would be automated during the intervals. Once the conditions are met, payment is made automatically.
Smart contracts would also be quite complex if more details and conditions were set. However, the underlying work would be the same; The underlying agreement and application are systematic.
With the help of intelligent contracts, algorithms can be created that are automatically indexed and every transaction is modeled. To simplify matters, information must be stored in a distributed ledger. In a distributed ledger, a person could efficiently review the transactionand would also provide further explanations on various complex transactions.