Smart Contract Generation via NLP and AST Parsing
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Solution Overview
Problem
Current contract management systems operate in silos, lacking coordination between drafting, negotiations, and execution, and rely on unreliable central databases, failing to execute event-driven clauses without human intervention, and require manual validation by legal representatives, making the process tedious, error-prone, and time-consuming.
Innovation Solution
A system and method that transforms contract clauses into self-executable smart contracts using Natural Language Processing (NLP) to convert plain text agreements into standardized format, generating abstract syntax trees, and deploying them on a decentralized blockchain platform for peer-to-peer execution, eliminating the need for third-party intermediaries and enabling automatic contract execution based on events and milestones.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If manual contract drafting and validation process is used, then legal accuracy can be ensured through lawyer validation, but the process becomes tedious, error-prone, and time-consuming
Solution Approach 1:
The contract management system enables self-service automation where the system automatically executes event-driven clauses and validates contract terms without requiring manual lawyer intervention for every clause. The smart contract automatically listens to current state and triggers clauses based on external events, making the system self-sufficient while maintaining accuracy.
Solution Approach 2:
The patent replaces the mechanical manual validation process with automated computational validation. The system uses automated parsing, abstract syntax tree generation, and smart contract execution to validate and enforce contract clauses, substituting human lawyer validation with machine-based automated validation that operates continuously without fatigue or error.
2Ease of operation
If centralized contract management system is used, then contract execution can be coordinated, but security and reliability are compromised due to third-party involvement
Solution Approach 1:
The patent segments the contract management system into distributed smart contracts deployed on a blockchain network. Each smart contract operates independently as a self-contained unit that autonomously executes its clauses based on event triggers, eliminating the need for a centralized coordinating authority while maintaining security through cryptographic verification.
Solution Approach 2:
The patent introduces blockchain technology as a trustless intermediary that enables direct peer-to-peer contract execution between parties. The blockchain network acts as a decentralized mediator that coordinates contract execution through consensus mechanisms, eliminating the need for traditional third-party intermediaries while enhancing security through cryptographic verification and immutability.
3Reliability
If traditional contract execution process is used, then all clauses can be validated by legal representatives, but the process requires constant human intervention
Solution Approach 1:
The smart contract system performs self-validation of clauses through automated parsing and abstract syntax tree generation. The system automatically validates contract terms against predefined rules and executes clauses based on event triggers without requiring human legal representatives to review each clause, achieving both reliability and high automation.
Solution Approach 2:
The system implements continuous feedback loops where smart contracts automatically monitor their own execution state, validate clause conditions, and trigger appropriate actions. The blockchain network provides feedback through consensus verification, ensuring clause validity without human intervention while maintaining high reliability through cryptographic proof.
Data Source
AI summary
A system and a method for transforming a contract into a digital contract for deployment over a decentralized platform. The system uses blockchain and artificial intelligence to automatically execute contracts. The system is configured to capture the intent, milestones and events of a contract in smart contract codes. In order to achieve this without any imposing transition costs on users, natural language processing is utilized to draft contract and the system generates the same contract in a pre-defined standardized form. The contract in standardized form is converted to respective parse tree and abstract syntax tree. The abstract syntax tree is converted to digital contract. The digital contract is compiled and deployed on to a blockchain network.