Imagine if your transactions one day become smarter. Let’s say you would like to buy goods from an unknown supplier. You are not certain that goods will be of certain quality, delivered on time or in the right package. Your supplier has doubts too — you might not pay her on time. And yes you can use a bank guarantee or an escrow account and go through a lot of steps to make sure the deal is honored. Reality is that time, effort and costs might be too great for most transactions. But what if there would be a faster, cheaper and more convenient way?

We at Penta are working on making transactions smarter. The idea is to allow the initiator of the transaction to condition it by anything two sides can agree on as long as the outcome is undisputedly clear, digitally verifiable and legal. Once the outcome gets realized, the transaction automatically goes through (in this case after the other party signs the receipt of goods digitally via your Penta mobile app or website).

Smart Transactions are more than a convenient escrow account. They could condition 3rd party access to funds on signing your short contract or T&Cs. Further on, businesses could use it to provide financial products to each other: hedge against volatile currencies, insure against the dry out, etc.
Digital contracts should remain as flexible as possible. In the case of escrow, it could be pre-conditioned if Penta should reserve the funds of a party that is obligated to pay or not. In case the funds are not reserved and the company refuses to pay we could provide a fast and easy service that will write a formal automated complaint letter to the other party. Furthermore, through Penta, your business can get legal advice via our partners that are specialized in the exact field you need. Legal services could be very fast, low-cost and convenient due to Penta’s automated services.

We believe that increased transparency would result in far less disputes and create value for customers on both sides of the transaction. We plan to offer it to our members free of charge.

What do you think of our idea? 
Do you have a need for smart transactions?
Would you use it for escrow?
Would you use it for short contracts to follow the transaction?

If you would like to discuss the article or offer any fresh ideas please write me at: Many kind thanks for your feedback.

Your Penta team

Lav leads Finance and Operations at Penta. You can email him above or send us any thoughts and comments that you have on:

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