top of page

Rise: Our World on a Wednesday

Your weekly M&A information bank, providing you with all the latest movements, market landscape and breaking news within the sector.


Smart contracting:


A vast amount of hype and ‘white noise’ surrounds the realm of cryptocurrencies, NFT’s and Blockchain platforms. Often being explained in extreme detail and using mystical terms, these spaces are severely misunderstood, confusing and daunting to try and grasp. However, smart contracts are one of the most exciting emerging opportunities within this traditionally

perplexing space.


What is a smart contract?


Smart contracts run on the blockchain platform, whereby the entire transaction is automated digitally. In essence, it verifies, controls and executes an entire agreement automatically, without the need for a third party.


Rules and penalties relating to the agreement are written as code on the blockchain platform, whereafter the agreement will run completely automatically, enforcing its coded obligations.



Advantages of Smart Contracts:

  • Savings: third parties are eliminated

  • Speed: a completely automated process significantly reduces time wastage

  • Safety: cryptography ensures the safety of valuable information

  • Storage & Backup: multiple copies are stored on the blockchain platform

  • Accuracy: errors are eliminated due to the minimal manual input


Disadvantages:

  • Code is difficult to change

  • Inability of the system to handle vague terms

  • Difficult to ensure that agreement terms are met ethically


Where will we see the use of smart contracts?

  • Financial services - particularly insurance claims and accounting practices

  • Government voting systems

  • Supply chain logistics

  • Health care systems


We could eventually see the majority of an M&A transaction take place using smart contracting platforms. However, this would take a large amount of complex code, which would be difficult to generalise, as each transaction differs fundamentally.


Already eliminating the direct need for middlemen, besides for their need to include the correct terms within the smart contract, the future of doing business involving traditional contracts is sure to be disrupted within the near future.


News:

  • Clickatell has secured $91m in their recent Series C round.

  • MarketForce secures $40m in Series A funding.

  • Zindi, a South African startup recently secures a $1m seed investment.

  • Flutterwave, a Fintech Startup secures $250m in Series D funding. It has now become the highest valued startup in Africa.

33 views0 comments

Recent Posts

See All

Commenti


bottom of page