Contracts are the cornerstone of doing business; but despite their importance, contracts have not changed much since their inception. Doing business that requires a contract often requires a lawyer and a filing cabinet — expensive, time-consuming and often inefficient resources; these are just a few of the reasons why Tokenized created a solution that digitizes contracts to make organizations requiring written agreements more efficient.
Tokenized achieves this by supplementing traditional contracts with blockchain-based computer-programmable contracts that use software to enhance and automate several elements of contracting experiences.
“Tokenized offers a better user experience. Tokenized is better, faster and cheaper than the traditional contracting process and it’s because of the software, ”said Founder and CEO James Belding.
How software creates efficiency in contracts
The software has advantages facilitated by computers that manual processes do not know.
For example, let’s look at starting a business. Traditionally (manually) this process involves several multi-page documents that serve as the company’s articles of incorporation and shareholders’ agreement, both of which are documents that a lawyer has most likely drafted or edited to suit their needs. the company and the founders. ‘ Needs.
Once everyone is happy with the language of the contracts, the document is signed and stored digitally and physically, to make future changes to this document you need to retrieve it from its digital and physical location, get in touch with an attorney who can make the desired changes, then have everyone who is contractually bound to the document read the new details, before reaching an agreement and signing the contract with the updated language and changes. This is a multi-step process that requires the action of several different parties, which is why Tokenized set out to remove this friction by making contracts digital and easier to access and modify.
“What we’re delivering is a much more integrated and native experience that leverages the archival layer of the blockchain, so that every action isn’t done on someone’s or someone’s Google Drive. a lawyer, then emailed to anyone who needs an updated copy. Instead, the blockchain is the only source of truth that everyone has access to in real time, ”Belding said.
“If changes need to be made, you have chain control over who can make those changes and who can’t, which can be a beneficial authentication component; and the structuring of the data allows the software to understand the meaning of it, the rules of what you can and cannot do will be much easier to determine than interpreting a contract yourself and then asking your lawyer what that you can or can not do.
“On Tokenized, you eliminate significant costs, in terms of time and money. Contracts are usually complicated, but if you can do it all software-based, on-chain, with a smart contract and control features, it’s a vastly improved experience, ”he added.
Compared to paper contracts and the processes that go with them, Tokenized better reflects the way business is done in the digital world we live in. It saves its users time and money by giving them the ability to view and make changes to contracts. a central source of truth to which all parties concerned have access. Organizations also benefit from the transparency that these blockchain-based contracts offer them, which helps these entities build trust between their business partners and consumers. The introduction of blockchain and software into contractual agreements eliminates the inefficiency that comes with its manual counterparts which are expensive, risky, and error-prone.
The future is digital
“We wanted to create a standard so that all recordings are optimized on-chain. Tokenized argues that to deliver this value and promise you need a highly integrated and consistent framework or protocol that allows all of these features to work optimally and the Tokenized protocol does it all, ”Belding said.
“He’s doing DeFi, he’s doing atomic swaps, he’s doing DAO contracts, he’s doing Ricardian contracts, he’s doing all of that, and he’s doing it in a way where it’s built for the general public. It’s designed for financial institutions to start integrating, it’s designed to replace – eventually – ISO standards, financial messaging standards and things like that – and we don’t think you can achieve those goals. with a fragmented community using fragmented standards. “
The creation and maintenance of records is obsolete; each organization and lawyer has its own way of handling these tasks and most continue to do them manually rather than through the computers that the majority of the world uses to do business on a day-to-day basis. Belding and the Tokenized team recognized that competing standards and separate procedures often lead to inefficiencies and ongoing plateaus, which is why they set out to create a blockchain-based standard that optimizes creation and maintenance. of folders, and everything that comes with it.
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