Contract and Money Transfer Based on Blockchain Technology

One of the companies’ strategies to circumvent cruel sanctions is to use blockchain technology and cryptocurrency. Although blockchain technology and cryptocurrency have greatly helped companies to do business and international trade, there are still many challenges along the way. In particular, contractual obligations are deprived of requirements such as judicial support and bank letters of credit. One alternative is to use smart contract technology on a blockchain platform. This solution also faces challenges. The first challenge is the legal solution in Iran and abroad to convert the base cryptocurrency into the official currency of the country. Another is fluctuations in the exchange rate against the dollar for base cryptocurrencies, and ultimately the security and confidentiality of contracts. From a practical point of view, a system that can implement a smart contract solution quickly and reliably for buyers and sellers can help apply this technology and provide the opportunity to attract capital and outsourcing. Therefore, the following challenges must be addressed in using smart contracts to trade and attract international capital:

The Challenge: Legal requirements of countries, exchange rate, the confidentiality of contract and institution supervising the proper performance of work