The development of many innovative processes is constrained by the old workflow system. The same applies to the need to write and sign contracts on paper as required by legislation. So many business processes are slowing down and are bureaucratized. We decided to discuss possible solutions of this issue with the founder of CREDITS blockchain platform Igor Chugunov.

According to Igor Chugunov, these are smart contracts that can solve the issues described. These contracts are digital versions of older paper documents created with software and math tools. They are an algorithm designed to significantly simplify and, in many cases, fully automate the process of harmonization and preparing any agreements. CREDITS platform provides this feature, and its developers have founded a project based on the blockchain technology known for its cryptocurrency.


There are many examples of how smart contracts are used, and it is worth paying attention to usage of this technology by the whole industries rather than in some specific cases. This is the situation that happened with the insurers, as success of one of the leaders in this sphere, the Allianz and Nephila Capital company, has been known for a long time. They are actively and effectively using smart contracts to optimize the expenses in the natural disaster sector.

This was not left unnoticed, so a number of prominent market participants acquired the startups that specialize in smart contracts, or gain support of the development teams. Among them is the famous British company PwC and even Allianz France which is a unit of Allianz. As a result, specialists are waiting for competition among insurers using smart contracts within next year or two. This will be a milestone event.

The use of smart contracts at the world’s highest-technology stock exchange in Yangon (Myanma) is worth special attention. The smart codes have been applied there since 2015, which in fact indicates the viability of this technology. The reason is the following: smart contracts are used in thousands at this stock exchange and during each trade session. They are complex and contain information not only on purchase/sales price or date, but also on a number of other details, including the presence or absence of any special external trade signals as well as the variable values.

It is worth noting that there have been no system failures during years, even for temporary synchronization. This is important because purchase of contracts can be implemented with a difference of a fraction of a second. And it’s interesting that traders and investors trust the system huge amounts of money. In addition to optimizing processes, the exchange saves money of high-paying brokers.

This example also shows the important advantage of a new technology, and namely cost-effectiveness. It is possible to avoid the associated costs in many transactions like paying for various professionals (lawyers, bank staff, logistics, brokers), which will make the procedure more affordable.

When using smart contract tools for blockchain, the technology acquires an additional level of security because blockchain minimizes the risks of data loss and their premeditated distortion.

Another important advantage of smart contracts is high security. They are based on blockchain and that is why their individual blocks are stored on different computers. Such decentralization eliminates the loss of data, the possibility of spoofing or hacker attacks.


The smart code prevents different interpretations of the contract terms by the parties of the transaction. As a result, the possibility of debatable issues is kept to a minimum. Therefore, it is safe to perform transactions with assets of variable value. For example, to issue microloans, to pay for the purchase of goods, or to prove ownership. They do so even in post-soviet territories: in Georgia, when you purchase a parcel of land, you create a smart code that remains in effect until you sell the transaction object. Besides, it makes the possibility of fraud almost to zero.

Another important advantage of these computer programs is the high universality. They can be used to formalize relations between individuals, organizations and, in a number of countries, with public authorities. You can make any asset (money, medicine, securities, cars, insurance policies, etc.) the object of transaction.

As a result, there exists already a number of organizations that operate on the basis of smart contract rules. And all their financial transactions (payroll, dividends and other payments) are performed using this technology.

Any person can apply a new technology in his or her daily life. For example, a smart contract successfully replaces a cash receipt in a debt transfer. This is a more reliable method, as the borrower will never say that the document does not contain his/her signature. A smart contract successfully replaces the COD payment when you buy anything in online stores, at various online auctions, and in forums.

Besides the impressive advantages, smart contracts still have some disadvantages, because today there is no necessary infrastructure and environment. This is particularly true in the case of Oracle programs that link digital and real worlds to deliver all required information to the smart contracts to perform their functions. As a result, it is easy to make a digital insurance policy, but there exists a problem with determining the insured event as this should be done by the oracles: they are not in abundance today.

Lack of legal regulation is also considered to be a drawback. The reason is simple: technologies are developing rapidly and the legislature is unable to develop the right framework in proper time.

There is also a lack of code lawyers now, i.e. the professionals with sufficient expertise in law and programming. As a result, programmers have to cooperate constantly with lawyers.

If all of these negatives are not resolved over time, then errors in smart contract preparation will definitely occur, leading to incorrect execution. Code immutability can also potentially be a significant flaw, as it cannot be envisaged, and there is a lot of work to be done in real life, but it will not work with smart contracts.

However, the benefits of such technology are greater, so it is developing successfully. And, if giants like IBM, Intel, Microsoft resolve the issues of top players in the marketplace, all other interested people can use the Ethereum platform service. It is now widely known among smart contract users.

A number of development teams that have already offered viable products and have gone through ICO, compete with Ethereum. They have raised on that millions of dollars for the future development. Among them are EOS, NEO, Tezos.


Another team is ready to come to ICO in early 2018 with the platform called CREDITS. It will be able to meet all the financial needs of business representatives and ordinary users. Besides smart contracts, the reason for that is a data exchange protocol with an internal cryptocurrency, and a unique blockchain implementation.

The main advantages of CREDITS will be:

-High speed of transaction processing: the program can endure over a million operations per second. For comparison: Bitcoin platform is capable of processing only a few transactions at the same time, and an average of 10 minutes per operation. This means that Bitcoin and other products of the old generation will not be able to perform operations requiring speed, such as buying coffee;

– low cost of transactions: the more capacity you have, the less expensive each individual operation is. Since CREDITS platform will be able to conduct a million of transactions per second, the cost of each would be as low as 0.01%, which would even benefit micropayments;

– the unique functionality of smart contracts: CREDITS offers truly self-contained smart contracts that do not require a third-party connection. Moreover, we have developed an additional functionality to work with loops and schedules. This will allow to create smart contracts performing regular payments on a predefined schedule.

It is also important that CREDITS platform is technologically balanced, because it is designed to meet the needs of users, the principles of blockchain and security requirements.