February 11 by Roland Vogl
The future of contracts will feature computable agreements that can self-execute. Blockchain data will automatically trigger performance based on certain predetermined conditions. Big Data analytics will help identify and eliminate risks in contracts, and natural language processing techniques will help determine whether those agreements comply with the GDPR or other consumer protection regulations.
The challenge that companies will need to overcome is harmonizing the array of proprietary approaches and the lack of interoperability. As a result, many companies will eventually adopt common standards and protocols to enable the Internet of Contracts. The CodeX Computable Contracts Initiative and the Legal Specification Protocol project reflect an attempt to draft agreements in a format that machines can understand.
Companies will eventually adopt common standards and protocols to enable the Internet of Contracts.
This effort to create a simple method for developing computable contracts is essential for accelerating progress. When true collaboration comes to fruition, the business community will select clauses that can operationalize their obligations, simply permitting those agreements to independently monitor activity and commence performance.