Blockchain technology has the potential to revolutionize payments and smart contracts. By using blockchain-based payment systems, companies can reduce transaction fees and delays because they are extra secure and bypass third-party intermediaries.
One company impacting contract security in blockchain is Nova Technology. The company provides the full circle of creditor solutions with its in-house software. In this interview, we sit down with Nova Technology's Ramon AB to discuss the use of blockchain in smart contracts, potential impending regulation, and the future of smart contracts. We've seen a glimpse of what blockchain can offer, and the stage is further set to redefine how smart contracts are executed and enforced.
Ramon: There is no one way in which we can expect every government to act when it comes to a technology as revolutionary as this. While some are extremely open to digital transformation, some others may be more traditional in their approach. Their existing level of technological maturation also impacts their decision making.
That said, smart contracts are extremely transparent, meaning it should, in theory, be easier to regulate. Considering that these allow for such unprecedented levels of transparency (and assurance!), it should also mean that governments, legal and financial teams, and others would not need to get as involved in these processes. However, as is the case for any technology, these technologies do need some level of regulation to ensure fairness and harmony.
Ramon: I’d say it’s relevant to any industry you can think of - that’s one of the reasons why we’ve been pursuing it at Nova Technology. Let’s agree that most businesses use contracts (even non-profits!) in one form or another, for this purpose or that. Now, smart contracts stored on the blockchain are automatically carried out as per the terms of said contract. This means that disputes, malintent, and delays are completely mitigated. It makes sense for businesses to progress to this so that our teams can spend time doing the work rather than worrying about the fine print.I think many people forget that blockchain has been around for longer than we think (around 15 years already).
Ramon: The beauty of blockchain (and the smart contracts stored on the blockchain) is that it’s transparent. Although it’s transparent, it doesn’t mean it is not susceptible to threats. You still need to ensure that your contract, specifically the details (think dates, terms and conditions etc.) are correct. Yet, when it comes to hacking a smart contract, it’s harder than you think. I won’t say it’s impossible, however there are ‘traps’ we sometimes fall into, making things tricky.
Something that we deal with quite regularly (unfortunately!) are phishing scams. I’m sure that many of us have been exposed to a phishing scam at one point or another in our lives. Something as simple as clicking on an unknown link, or paying a fake invoice, etc. can be all it takes. Yes, technology can be misused, but technology can also turn the table around. With every potential setback or vulnerability, there lies an opportunity to make defense stronger. This is the reason we’ve designed our software the way it is; to ensure simplicity but also assurance.
Ramon: It’s a total paradigm shift. We foresee that work will be a lot more preventative rather than needing to problem-solve and sort disputes. Put simply, this is really the whole reason why Nova Technology was created- to fix issues before they happen.
What this means is that we should strive for better efficiency and transparency across the board. A great way to think about it is that smart contracts are tools that professionals can use to streamline their internal processes. Less time needed to be spent on things like administration, tracking dates, etc., directly translates to more time being spent doing the actual work. All parties involved should have complete assurance, or should I say they should really be able to trust the process.
It goes without saying, I see a lot of potential in blockchain technology and business. Quite a few companies, even industries as a whole, are using smart contracts. Across the globe, I expect to see the rate of adoption go up even more. As I mentioned before, some companies and countries may have stricter regulations compared to others. However, smart contracts are extremely flexible, and can be created in whichever way you see fit.
We live in a world which is extremely fast-moving, with many of us having less and less time to spend on details we’d rather not. As someone who speaks to clients every day, who are looking for solutions like these, to me, smart contracts make a lot of sense - I mean, why not make your life easier?
