Confideal ICO Reviewed, Using Smart Contract Technology To Solve Contractual Processes

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Confideal, the smart contract platform, will conduct its token sale from 2 November 2017. The initial coin offering (ICO) follows an ICO pre-sale earlier this year. The Confideal (CDL) token will be available to buy on the Ethereum blockchain.

What is Confideal?

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According to its white paper, Confideal is a platform which “uses the smart contract technology powered by the Ethereum blockchain to solve the principal problems bound up with modern contractual processes.”

Confideal has already released a product in beta mode which allows users to test the smart contract platform.

The Confideal platform is a contract builder for goods and services. Its white paper outlines a number of possible benefits for users of the platform.

  • A user-friendly interface that does not require users have programming or coding skills.
  • Data is encrypted and protected by the Ethereum blockchain. As a result, the terms of the deal remain secure and data is protected.
  • The platform provides tools to manage the contract and ensure parties fulfil their obligations.
  • Confideal also provides mechanisams for third-party arbitration and mediation to resolve any disputes.
  • The platform would remove the requirement for intermediaries thereby reducing costs for the contracting parties.

The white paper also explains how the contract process would work:

  • The contract is created using the Confideal interface,
  • All parties sign the contract with their unique keys,
  • The client deposits the agreed-upon sum of money to the contract,
  • The contract is then recorded and stored on the blockchain. A limited amount of data is stored openly on the blockchain.

The start-up aims to reduce the costs associated with drafting and enforcing contracts by increasing transparency and trust. The smart contract acts as a ‘holder’ for payments until parties fulfil their agreed contractual obligations.

The white paper outlines a number of rights that will apply to token holders. For example, CDL token owners will be able to use their tokens:

  • to pay other parties when making deals within the Confideal platform
  • to influence the ranking of arbitrators

There are a number of scenarios in which the platform could be used including international trade and payment services.  Initially, Confideal expects its users to be companies and individuals who are already involved in blockchain technologies and the cryptocommunity. However, the white paper suggests that Confideal has ambitions to be adopted more widely as a contract provider for other types of international trade.

Arbitration

In addition to its contract builder, Confideal also includes tools for arbitration in the event of a dispute between the contracting parties.  At the drafting stage, the parties would agree on an arbitrator who could act if a dispute arises subsequently.  This information would be included within the terms of the smart contract.

The arbitrator is a third-party professional whose credentials would have been confirmed and approved by Confideal. They would receive a fee for their services.

Arbitrators would be subject to a ranking system which determines the position of arbitrators on a list. Ratings would be determined using a combination of measures including response time, number of settled disputes  and the votes of CDL token holders.

Contracting parties would evaluate the performance and quality of work provided by an arbitrator once the dispute resolution process has completed. This information about arbitrators would be available to all Confideal users to view.

The Confideal ICO

As a relatively recent development, ICOs can be high-risk for investors because of their uncertain status. If the start-up is successful, then the token’s value will increase. In time, token holders may be able to trade their tokens on a secondary market.

Of course, buying tokens does not give the purchaser a stake in the start-up in the same way as if they invested during a more familiar IPO and obtained shares. At the moment, the ICO may be considered as a type of crowdfunding using the blockchain and cryptocurrencies.

Founded in 2016, Confideal is headquartered in Cork, Ireland. The start-up has already announced several advisors and attended blockchain conferences and events internationally. Their social media includes Twitter, Linkedin, Facebook and Telegram. Weekly Q and A sessions have also been broadcast using Facebook Live. The ICO pre-sale was held during August 2017.

The Confideal ICO opens on 2 November 2017 and is due to run until 22 November 2017. The funds raised during this period will be used to support the development of the platform and its marketing.

The white paper is available to review here.

 

 

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