Computable Contract Graph for Real-Time State Updates
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Current digital contract management systems are static and unable to dynamically respond to real-time data changes, failing to provide real-time visibility or management of contractual performance, and lack integration with external systems and cryptographic ledgers.
Innovation Solution
A system and method utilizing a graph data structure to facilitate the formation, versioning, and management of computable contracts, enabling them to be cryptographically immutable, auditable, queryable, and replayable, with integration capabilities for external data sources and blockchain systems.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If contracts are stored as static digital representations (PDFs), then document storage and management are simplified, but real-time visibility and dynamic response to data changes are lost
Solution Approach 1:
The patent transforms static contract documents into dynamic, computable contracts that automatically update and respond to real-time data changes. The system uses executable code representations that can dynamically adjust contract terms, track performance metrics, and provide real-time visibility without requiring manual updates or amendments.
Solution Approach 2:
The patent replaces traditional mechanical document management systems (PDF storage, manual tracking) with a computational system that automatically processes contract data. The system uses software-based contract representations that can be executed, queried, and updated programmatically, eliminating the need for manual document handling while maintaining ease of management.
2Reliability
If contracts are amended through traditional legal processes, then contractual changes are legally enforceable, but real-time adaptability and responsiveness to changing conditions are delayed
Solution Approach 1:
The patent incorporates preliminary action by embedding executable logic and automation rules within the contract code during the initial formation stage. This allows the contract to automatically respond to predefined conditions and trigger amendments or performance actions in real-time, while maintaining legal enforceability through the underlying contractual framework.
Solution Approach 2:
The patent enables contracts to self-manage through automated execution of embedded code logic. The system can automatically detect condition changes, calculate performance metrics, trigger amendments, and enforce terms without requiring manual legal processes, thereby achieving both real-time adaptability and legal reliability through the computable contract framework.
3Loss of information
If contract management systems create separate centralized repositories, then data centralization and tracking are improved, but integration with external systems and cryptographic ledgers is lost
Solution Approach 1:
The patent creates a universal computable contract framework that can operate across multiple systems and platforms simultaneously. The executable contract code can interact with external data sources, blockchain ledgers, and enterprise systems while maintaining centralized performance tracking, thereby achieving both information retention and system integration through its multi-functional architecture.
Solution Approach 2:
The patent uses the computable contract system itself as an intermediary layer between centralized performance tracking and external systems. The executable contract code acts as a mediator that can query external data sources, write to cryptographic ledgers, and maintain accurate performance records without requiring separate integration layers for each external system.
Data Source
AI summary
A system and method for computable contracts that includes a contract management system accessible by involved parties, managing a formation stage of a contract document by obtaining object components, assembling a contract object graph from the object components, and committing the contract object graph to post formation execution; and in an execution environment during a post-formation stage, executing the contract object graph where instances of execution include receiving a contract state update, and appending at least one update object component to the contract object graph in accordance with the contract state update. Variations of the system and method may apply peer-to-peer negotiation and execution, use a cryptographic directed acyclic contract object graph, and/or interface with distributed ledgers.