The Nippon Telegraph and Telephone Corporation (NTT) headquartered in Tokyo, through a patent application announced on July 19, that they want to deploy blockchain technology in formulating new plans and procedures for contract agreements.
NTT ranked 65th in Fortune Global 500 and is the fourth largest telecommunications company in the world in terms of revenue with a valuation estimated to be at $94.2 billion by Michigan TechNews in 2017.
Through the invention, NTT wants to build a contract management system which can provide a way to store copies of executed contracts, easily allow access to stored contracts in an instant with definite encryption, and without the need of any centralized management or any intermediary for users to transact each other.
The “receiver of a transaction on an issued contract” would create a new transaction that would be able to connect to an original “contract transaction,” inscribed on a block in the chain.
The patent application document clarifies:
“The present invention uses a blockchain as evidence of a contract made among a plurality of users. A contract here refers to a sales contract, a deed of transfer, an application, a consent agreement, or the like, and is a document describing the content of a contract made among two or more individuals or bodies.”
The users wish to be intertwined in the agreement would link transactions to this principal virtual “contract transaction” that would eventually be returned to “the contract-issuing party to close the chain of transactions.”
The complete process, as per Nippon Telegraph and Telephone is, “a simple method of maintaining the mode of one electronic signature per transaction and maintaining credibility. Even if any of the apparatuses loses the evidence of an agreement, the evidence can be retained permanently as long as the system of the corresponding blockchain exists.”
Though this technology is certainly complex, NTT thorough its pilot blockchain mechanism wants to bring the credibility without needing such centralized management which is already started to be widespread mainly for digital virtual currency. It will maintain soundness by assuring credibility of exchanged information using an agreement formation process in a network formed by all the participants and by preventing fraud, such as falsification and double spending, in the entire system.