A proxy contract is required if you want someone else to act on your behalf in a corporate matter. This is a valuable tool if you live a long distance from where the stockholders’ meetings are held, have other businesses to attend to, cannot physically get to the voting location, or cannot take part for any reason. This article will show you What a proxy contract and its application in the blockchain is.
1. What is a proxy contract?
A proxy contract is an agreement that allows one person to perform legal tasks on behalf of another. In stock voting, a person permits another person to vote on their behalf through a proxy contract.
Most times, a proxy can give the ability to vote on behalf of a stockholder. It is a simple contract that allows one person to represent another.
2. How proxy contracts work
Proxy contracts follow simple “if/when…then…” statements in blockchain code. The actions are carried out by a network of computers when specified conditions are satisfied and validated. These can entail transmitting money to the parties, registering a vehicle, sending notifications, or issuing tickets. The blockchain is updated after the transaction is finished. This means that the transaction cannot change, and the results are only visible to parties who have been granted permission.
There might be as many clauses in a proxy contract as is required to reassure the participants that the assignment will accomplish. To establish the conditions, participants must come to an agreement on the “if/when…then” rules that apply to those transactions, consider possible exceptions, and provide a procedure for resolving disputes. Participants must also decide how transactions and data are represented on the blockchain.
A developer can then create the proxy contract, though more and more businesses using blockchain for business are using templates, web interfaces, and other online tools to make creating smart contracts easier.
3. Proxy contract’s application in blockchain
Safeguarding the efficacy of medications
Sonoco and IBM are collaborating to improve the transportation of life-saving medications by increasing supply chain transparency. Pharma Portal is a blockchain-based platform powered by IBM Blockchain Transparent Supply that tracks temperature-controlled pharmaceuticals through the supply chain to provide reliable, trusted, and accurate data across multiple parties.
Increasing trust in the retailer-supplier relationship
Home Depot uses blockchain smart contracts to quickly resolve vendor disputes. They are strengthening relationships with suppliers through real-time communication and increased visibility into the supply chain, resulting in more time for innovation and critical work.
Making international trade faster and more efficient
Businesses are building a trusted ecosystem for global trade by joining we trade, the trade finance network convened by IBM Blockchain. We are a blockchain-based platform. Standardized rules and simplified trading options are used in trade to reduce friction and risk while easing the trading process and expanding trade opportunities for participating companies and banks.
It would help if you understood what a proxy contract is and how it is used in blockchain. With these powerful tools at your disposal, future blockchain development will be much easier. You can contact SmartOSC if need help with blockchain services.
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