Scrypta Digital Contract is the newly developed platform that allows you to create digital contracts between parties thanks to Scrypta’s blockchain, store their texts (if public) or simply notarize the hash of a document or folder shared between contract participants.
The interesting aspect of the system is the management of the life of the contract:
the parties actually establish a digital relationship, represented by a particular address on the Scrypta network, within which common wills can be written (such as the subject of the contract countersigned by the participants) or single wills (i.e. written unilaterally by one of the identities constituting the contract) of which an indelible trace will remain.
This can be very useful in the event that one party needs to notify the others of something (unilateral) or in the event that a change to the agreements is required (unanimous).
The Digital Contract, as well as any other contract, can also be terminated by sending notice of termination within the terms, or by natural expiration of the contract itself, according to what has been signed.
Digital Identity and Digital Contract
Scrypta ID, as already exposed in a previous article, allows different levels of “trust”, starting from the pseudonym level of the Scrypta blockchain address up to a highly qualified level (e.g. with CIE verification). It is important to emphasize that the digital signature, at the legal level, is valid if the parties have in fact accepted the recognition of this signature.
It is clear that in the case of the Digital Contract the digital signature and the correlated digital identity must be recognized and accepted by the parties. For this reason there is no real need for central authority, which puts this tool, which we recall “notarizes” data within an unalterable infrastructure, certainly above private writing.
However, since the legal aspect of this particularly innovative type of contract is closely related to the jurisdiction to which it applies, it would be advisable for at least one of the parties to the contract to be identifiable in a lawyer, notary or other third party figure (e.g., government-administrative body).
Multisignature and Trustlink
At a technical level, Digital Contract uses the Trustlink technology of Scrypta, this allows to create blockchain addresses that have the power to write only if the number of signatures corresponds to the minimum number set in the contract (it is identified with “n” the minimum number and “m” the maximum number of signatures). This type of signatures is called multisignature and is usually used as a joint account. In the case of Scrypta, which favors the transfer of information over the transfer of value, this actually becomes a contract.
Types of Digital Contract
Below is a description of Scrypta’s main types of Digital Contracts:
On-chain contract writing and signing: the text is public and visible within the blockchain. This typology is useful for public acts such as property transfers, companies, associations, etc.
Signing off-chain contracts: the object is represented by a file (e.g. .pdf) whose hash is calculated and notarized in the blockchain. This type is useful in case the act countersigned between the parties is private and must remain so.
Differences between Digital and Smart Contract
The technology developed by Scrypta for digital contracts differs profoundly from that of the Smart Contracts typical of the Ethereum blockchain. The latter represent a new type of contractual form that is developed through a software whose operation is delegated to the blockchain. Usually these softwares have funds that are automatically transited through the logics reported inside the software/contract.
Scrypta’s Digital Contracts, on the other hand, are the transposition into the digital world of the classic contractual form in which identity and signatures certainly represent the crucial point of “trust”.
Another substantial difference is the approach to security: the code that governs Scrypta Digital Contracts is in dApp (decentralized application) format so that the software can be verified and retrieved within the user’s device. In Smart Contracts, on the other hand, security depends on the reliability of the proprietary code of the contract/software.
SCRYPTA - Adaptive BlockchainWebsite: www.scryptachain.org
Wiki Guide: https://scrypta.wiki
Scrypta Shop: https://scrypta.shop/
Block Explorer: https://chainz.cryptoid.info/lyra
Official Github: https://github.com/scryptachain