Blockchain and contract management: two concepts that might seem as far apart as Kantian aesthetics and the humour of Louis C.K. Yet, at the dawn of this new digital era, the two are striking up a thoroughly postmodern romance. This new couple could well shake the business world.
Prometheus unbound: blockchain in action
If blockchain were a superhero, it would surely be Batman: self-reliant, governed by an unshakeable moral code and terrifyingly effective. The technology is like a great universal library in which every transaction becomes an indelible book, open to all and impossible to alter. A dream come true for anyone who cares about transparency and integrity.
But just as every superhero has a flip side, blockchain has its dark side too. Total transparency also means total surveillance, a somewhat Kafkaesque reality in which every action is recorded and scrutinised.
The odyssey of contract management: in search of a digital muse
Traditional contract management can look, by comparison, like an old hermit reluctant to change. This central business practice consists in managing the creation, performance and analysis of contracts in order to maximise performance while minimising risk. It is a painstaking process, often long and costly, but essential for any company that wants to navigate safe waters.
With the arrival of blockchain, however, that old hermit may well have found a digital muse capable of breathing new life into him. Smart contracts (automated contracts that execute as soon as certain conditions are met) could make contract management faster, safer and cheaper.
Beyond appearances: what this romance implies
Like a digital Juliet, blockchain seems to promise contract management an ideal relationship, full of efficiency and transparency. But, as in every love story, there are shadows across this idyllic picture.
On the one hand, automating contract management through blockchain could reduce errors and increase efficiency. Greater transparency can also build trust between the parties and make disputes easier to resolve.
On the other hand, that automation could make contracts impersonal and rigid. And the heightened surveillance that blockchain enables could create a corporate culture built on monitoring rather than trust.
Conclusions: between utopia and dystopia
This romance between blockchain and contract management therefore promises a revolution in the business world. Like any Promethean technology, however, it could lead just as easily to utopia as to dystopia.
We could end up with a business world that is more transparent, more efficient and less prone to error. Or we could create a business environment where surveillance is the norm and contracts become rigid, impersonal instruments.
As Albert Einstein so aptly put it, “the measure of intelligence is the ability to change”. It is therefore vital that we learn to adapt to these new technologies while keeping their potential implications firmly in mind. After all, who does not enjoy a good love story with a little spice?