Cryptocurrency and Smart Contracts | ePact
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Cryptocurrency and Smart Contracts

Cryptocurrency and Smart Contracts
Profile image of Aron M. Bratlann
Aron M. Bratlann
Sep 28, 2025

Cryptocurrency and Smart Contracts

"But aren't digital signatures just old news when we have blockchain?" asked the tech entrepreneur, leaning back with a confident smile. The answer? Both yes and no. Smart contracts and traditional digital signatures don't live in competition - they complement each other in fascinating ways.

Let's dive into how future contract handling combines the best of both worlds.

Smart Contracts: Code as Contract

A smart contract is fundamentally different from a digital signature. It is:

  • Self-executing code on blockchain
  • Automatic actions when conditions are met
  • Immutable once deployed
  • Transparent to all parties

Example: A smart contract can automatically transfer payment when goods are delivered, without human intervention.

Where Smart Contracts Excel

Automation: No manual follow-up. Contract executes itself.

Trustless transactions: Parties don't need to trust each other, only the code.

Microtransactions: Economically feasible to handle even tiny amounts.

Global reach: No geographic or jurisdictional limitations.

24/7 execution: Blockchain never sleeps.

But Reality is Complex

Here come the challenges:

Legal recognition: Danish courts understand MitID signatures. Smart contracts? Not so much.

Bugs are permanent: Errors in code cannot be fixed after deployment.

Human interpretation: What if parties disagree on contract intention?

Regulatory compliance: GDPR and blockchain aren't natural friends.

The Hybrid Solution: Best of Both Worlds

Modern contract handling combines strengths:

Legal wrapper: Traditional digital contract (signed via ePact) defines legal framework.

Smart contract execution: Blockchain handles automated elements.

Dispute resolution: Human mediation when automation fails.

Audit trail: Both blockchain and traditional logging for full documentation.

Practical Use Cases

Escrow services:

  • Digital contract establishes agreement
  • Smart contract holds funds
  • Automatic release upon fulfillment
  • Legal recourse through traditional contract

Royalty distribution:

  • Music contract signed digitally
  • Smart contract distributes revenue automatically
  • Transparent accounting for all parties
  • Legal framework if disagreement arises

Supply chain:

  • Framework agreement via digital signature
  • Smart contracts for each delivery
  • Automatic payment upon IoT-verified delivery
  • Traditional contract as legal safety net

Crypto Payments Meet Traditional Contracts

More companies now accept crypto as payment. Digital signature platforms adapt:

Multi-currency support: Contracts specify payment in both fiat and crypto.

Exchange rate locks: Freeze crypto value at signing time.

Wallet verification: Link crypto wallet to digital identity.

Tax documentation: Automatic reporting of crypto transactions.

Challenges to Solve

Volatility: Crypto prices fluctuate wildly. Contracts must account for this.

Technical literacy: Not everyone understands blockchain. Simplicity is critical.

Recovery mechanisms: What if private keys are lost?

Cross-chain complexity: Different blockchains don't naturally talk to each other.

The Future is Hybrid

We're moving toward a world where:

  • Simple agreements use traditional digital signatures
  • Complex, repeated transactions use smart contracts
  • Critical agreements use both for maximum security
  • AI helps choose right tool for the task

ePact's Position

As a platform, ePact prepares for the blockchain future:

  • APIs ready for blockchain integration
  • Partnerships with smart contract platforms
  • Education of users in new possibilities
  • Maintaining simplicity while technology expands

Start with Simple

For most companies, traditional digital signatures remain the right choice:

  • Legally recognized
  • User-friendly
  • Cost-effective
  • Future-proof

But keep watching developments. As smart contracts mature and regulation follows, the combination of traditional and blockchain-based contract handling will create opportunities we can only dream of today.

The future isn't either/or. It's both/and. And it's very exciting.