Contract Vault aims to integrate smart contracts with the legal system to make contracts easier to create and use. Today contracts are difficult to create, complicated, and expensive.
Contract Vault aims to create a platform that allows users to easily create legally-enforceable smart contracts. This will reduce the cost to create a contract, improve transparency and allow anyone to create legal contracts on the blockchain.
For legal enforceability it will use Ricardian smart contracts – which are smart contracts which encode natural language legal statements. To facilitate ease of use, its platform will include contract templates so contracts don’t have to be drawn up from scratch.
Looking through their whitepaper, the team has thought through the implementation thoroughly, as well as potential use cases, including for share-issuing companies, ICOs, and wills.
Team
4/5 Excellent
The core team, including the founders of the company, is strong in terms of both software development and law. Core team members seem to be dedicated to Contract Vault full time. We also like that the project is based out of Switzerland, a crypto-friendly jurisdiction.
Token
3.5/5 – OK
The VLT token is used to pay for contract templates and legal services . For lawyers, they receive VLT for auditing or creating contracts.
50% of VLT tokens are being sold for a hard cap of 45Million Swiss Francs, or about 45 million USD. This is a rather high cap but also a relatively high percentage of tokens dedicated to the public sale.
Risks
4.5/5 – Low Risk
The team is quite solid from both development and legal aspects so we feel execution risk is low. They are promising a beta in July.
In terms of long term goals there is more risk – legally enforceable digital contracts requires legislative changes, which will take time to occur. Its very likely that even if the platform succeeds, it may take years for regulations around the world to change to accommodate this new legal framework.
However, because digital, smart contracts still are useful in personal and business agreemenths , contract vault can still operate on a limited–but still useful functionality where it provides easy to use natural language contracts, which are automatically enforced at a digital level.
Summary
Contract Vault solves a large issue in smart contracts. By making them easy to issue, easier to read for regular people, and having some translation to actual legal contracts, it ties the world of smart contracts to the real world. Regular folks can draw up personal or business agreements, and businesses can create automatically enforced contracts at low cost. Because of their use of Ricardian contracts, it’s also possible that the contracts created by Contract Vault could be legally valid.
There are some risks to the project, the main one being that regulation will take time to adapt to digital contracts, but as Contract vault provides useful functionality even beyond that, we think it is good project. In terms of return on investment, we like this one as well, however its hard cap of 45M CHF is rather high and should be kept in mind.
More infomation:
Website: https://www.contractvault.io/
Announcement Thread: https://bitcointalk.org/index.php?topic=3463255.0
Lightpaper: https://www.contractvault.io/files/lightpaper.pdf
Whitepaper: https://www.contractvault.io/token/#document-assets
Author:
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