Updated: Jun 9
AI Smart Contracts for the Enterprise – IBM Supply Chain
Smart contracts are used to seal a deal just as a paper contract does. When we seal the deal: we finalize the deal and sign the contract. A paper contract is managed by people and has many manual steps. The smart contract is automated. It can tell when a product has shipped, send a bill, collect funds, and put the funds in a bank.
Smart contracts can manage the automation of cross-border payments, reducing the time from three to five days to 3 seconds. The costs are similarly reduced.
Smart contracts execute automatically, once they are set in place, they cannot be modified. Adjusting a smart contract once it’s in place is not an option. The smart contract work shifts to making sure each party is absolutely clear on the terms. If a dispute does occur, contract permanence poses a barrier to dispute resolution.
According to IBM, Hyperledger Fabric, an open-source project, is the modular blockchain framework and de facto standard for enterprise solutions. Hyperledger is used to implement smart contracts. The open, modular architecture uses plug-and-play components.
IBM uses smart contracts to help businesses to manage supply chains. A smart contract is able to recognize when a store runs out of a specific product to make a replacement order with a supplier. It may be written so it can fill the order before the product runs out at the store.
IBM has a compelling presence in the smart contract market with 120,000 contributing organizations and more than 15,000 engineer contributors working together to implement IBM Hyperledger. IBM Hyperledger Fabric offers data privacy.
Smart contracts implemented on blockchain and distributed ledgers leverage trust to develop a rapidly growing automation of processes. Digital assets and decentralized finance are transformed by smart contracts.