Contract Vault – Online Contract Solutions for Everyone in the Ethereum Blockchain
Until today, contracts have been so complicated that users find it inconvenient to use them. Moreover, they only works well for significant agreements instead of the simple ones. This problem can be solved by the Smart Contract automation and the versatility promised by Ricardian Contracts supported by the internet scalability. More people, especially the ordinary ones, will be able to fulfil simple agreements with a higher level of trust and certainty than before. This is what Contract Vault is going to achieve. It will support new transactions and applications.
Problems on Smart Contracts
The purpose of smart contracts is to enable a system to use the code on a blockchain for algorithmic and mechanized execution of contract terms that have been predefined. However, this code cannot replace the existing law. The state authorities still do not accept smart contracts as legal contracts. Even these contracts are not recognized legally in most jurisdictions. All the contractual partners, therefore, should fully understand and accept the circumstance and the functionality of the Smart Contracts.
Concerning the issue above, Contract Vault believes that the execution of Smart Contract which ignores these conditions and requirements is not enough. Therefore, Contract Vault creates a construct that is both human- and machine-readable so, it can be easily understood and shared by other parties. This construct is called as a Ricardian Contract which idea has actually existed for more than two decades.
About Ricardian Contracts
Ricardian contracts do not need to be legally binding. It is hoped that these contracts can be largely used. It will increase the tokenization of physical assets, the tamper-proof contracts, and decentralized arbitration. In addition to contracts that do not require any formalities, there are other contracts that need particular formalities used by many legal systems. For example, in Switzerland, a surety needs to be written and notarized and a will has to be handwritten. It also applies to land purchases and marriage contracts. They are considered valid only if they are notarized.
Blockchain technology and Smart Contracts should have been suitable for such contracts. However, even the use of Ricardian Contract still is still not recognized legally by most jurisdictions. Fortunately, some countries like Sweden, Switzerland, and Estonia are very open to using Smart Contracts and Blockchain. It is because the system is already in place. Therefore, Contract Value is attempting to offer effective solutions for these contractual agreements. Contract Value believes that blockchain-based solutions work for commercial registers, corporate law, land registers, and other parties. In the near future, due to the fewer establish process and the necessity of optimizing the process.
Contract Vault will prove that Smart Contracts is necessary to ascertain between whom and for what reason a pacific transaction happens. For contracts which do require formalities, Ricardian Contracts can be used to maximize and automatize the contractual process and relationship. Amendments are required to use the Ricardian Contracts and lawmakers will start to notice when pioneers, such as Contract Vault, can offer plausible and valuable solutions.
ICO Token Details
Contract Vault created its own tokens with the name Vault Token (VLT). This Ethereum ERC-20 token will be sold at 0.1 CHF (Swiss Franc) for 1 VLT. It means you can buy 10 VLT for 1 CHF. The hard cap is set to be 45 million CHF while the minimum goal us 1 million CHF. There is three payment method to purchase the token. You can use ETH, fiat currencies (CHF, GBP, and EUR, and some major credit cards. The presale had been completely done (1 December 2017 – 31 January 2018. The ICO sale has started on 1 May 2018. The closing date is scheduled to be on 15 June 2018. The ICO sale falls into three phases. The token sale phases will be explained further in the next article. All unsold VLT tokens will be destroyed by burning them after the last phase of the sale ends. There will be no more tokens created after the sale.
There will be always risks in investing in ICO. In order to mitigate the risks, the company will partner with ChainSecurity, Validity Labs, and other respected companies to ensure the security of the token sale.
In the next article, you will read about the features of the Smart Contracts by Contract Vault and the marketplace.