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Blockchain as a key to control your contracts

How to build better compliance into contracts and leases

RFP
locked doorMany enterprises are accountable for a complex network of contracts and leases, often created by various teams, in different locations, with divergent terms and conditions.

Traditionally, corporate accounting for leases has varied. But new standards from the Financial Accounting Standards Board (FASB) and International Accounting Standards Board (IASB) require that companies record almost all leases on the balance sheet.

The increased scrutiny has pushed companies to standardize and centralize their processes and systems for tracking contracts – and new strategies are using new technologies.

Grant Thornton Advisory Manager Sean Roberts said “There’s really a shift in the way that some technologists are thinking about this, in regards to how we can use smart contracts and how we can use the technology of blockchain, which especially is helpful for things like immutability – the ability to lock something in and say that ‘this cannot be changed from here on out.’” But, blockchain’s locks must be built into a larger system. Grant Thornton Innovation Director Malcolm Silberman said “If you design this appropriately, you shouldn’t even know that you’re on a blockchain… really, from an architectural point of view, we’re looking to design user experiences where users don’t know about the complexity of the blockchain.”

Listen to Sean and Malcolm discuss the critical role that blockchain technology can play in contract control and compliance.



Contacts:
Sean Roberts
Manager, Advisory
T +1 215 558 6586

Malcolm Silberman
Director, Innovation
T +1 678 515 2447