Smart contracts, trusted third parties and partners

Objetive

  • Offer the creation of smart contracts based on trusted third parties, which act in the event of a conflict between the parties involved in said contract.
  • Allow authorized third parties (partners) to create a smart contract on behalf of other participants, who must sign said contract for it to be effective.
  • Record immutably in a blockchain within our network, any event that causes a change of state in any contract.
  • Inform all parties to a smart contract about the change in their status, including partners if they exist.

Some use cases for trusted third parties

 

Trusted third parties take action if there is a dispute between the parties to a smart contract. These contracts have an associated commission, which the trusted third party receives whether there has been a dispute or not.

Below we present some potential clients to act as trusted third parties:

  • Banks: When a smart contract models a product offered by the bank, for example a documentary credit, the bank can act as a trusted third party.
  • In-person or online companies that bring buyer and seller into contact: As they are not an interested party in the transaction, they can act as a trusted third party.
  • Notaries and lawyers: They can act as trusted third parties in case of dispute in smart contracts created directly by users.

 

Some partner use cases

 

Authorized partners can create smart contracts on behalf of other parties. In reality, what they create is a pre-contract, which must be accepted by the parties to be effective.
Below we present some potential clients to act as a partner:

  • Banks: When the smart contract is associated with a payment method managed by the bank, the user must accept the contract before a certain time. We have a typical example of this in the current operations of a bank when you pay with a credit or debit card.
  • In-person or online companies that bring buyer and seller into contact: They create the smart contract automatically, to facilitate this process for the parties.
  • Companies or professionals that offer their services over the Internet: They create the smart contract automatically, in this way the client and the company are protected in the transaction.

 

 

Example of smart contract modeling associated with a transfer of litras

A smart contract involves a buyer, a seller, and a trusted agent. The object of the contract can be whatever you want, for example buying a mobile phone or having a blind repaired in your house.

The buyer creates the contract, leaving the total liters corresponding to said contract frozen at that same moment. The buyer will no longer be able to use them, so the seller is calm that he will receive his payment if he fulfills his part of the contract.

The buyer releases the payment when he receives the object or service, so he is calm that the purchase has met the initial expectations.

The trusted agent acts only if a dispute is initiated by one of the parties, deciding whether the total number of litras is returned to the buyer or paid to the seller. In this way, the buyer is calm that if the item purchased or the service received is not correct, he will be able to recover his litras. It is important to note here that the trusted agent is not a depositary of the litras, so there is no risk of loss, he only has the privilege of deciding in the event of a dispute.

In version 2 of the client program, other parties to the contract are included, which will be facilitators of information from abroad, and which will be used to condition their business logic.

Smart contracts will go through a series of states. These changes are caused by the participants by generating events.

The 4 types of example smart contracts in Litra

4 different types of smart contracts can be used to adapt to all situations that we can find:

* Buy or sell litras: This type of contract is created when you want to buy or sell litras, paying or receiving fiat currency as a counterpart.

* Purchase or sale of objects or services on web pages that put the buyer and the seller in contact: The website creates the contract and also acts as a trusted agent. The buyer must accept it through the client program in less than 5 minutes.

* Purchase or sale of objects or services offered directly by the company that offers them: Used by any company that sells products or services. The company creates the contract but cannot be a trusted agent as it is an interested party. The buyer must accept the contract within 5 minutes.

* Purchase or sale of objects or services between individuals: The buyer creates the contract by choosing a trusted agent from the collaborating companies authorized by Litra.

Characteristics of smart contracts in Litra (adaptable to the end client)

unalterable

Contracts and events are stored in blockchains

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cost

Free for the buyer, and a minimal cost (commission) for the seller

income generation

For companies acting as trusted agents, as they earn most of the commission

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traceable contracts

Both the creation of the contract and events that change its status are signed by those responsible

contract confirmation

Contracts that are created by third-party companies must be confirmed within 5 minutes after their creation

Easy to use

Thanks to the free client program, which you can install on your mobile phone, tablet or personal computer.

ENCRYPTION

The contract may or may not be encrypted. If it is, only the holder of the access key will be able to understand its content.

without depositories

There is no risk of theft, since trusted agents do not have access to the litras or elitras. They only have the ability to decide in case of dispute

FRIENDLY INTERFACE

Trusted agents can easily adapt their computer systems to work with the Litra Project