Interview with Leonid Mechik
innovation consists of a business-process-oriented approach to contract creation. Embedding of formal business processes description directly into the body of contract makes it self-executable. It enables contracts to observe the real process state and to implement the contract conditions. As a result, it boosts trackability of the contract state and compliance of inhouse and outer processes. The new approach is accomplished by putting business process owners in charge of modelling and managing contracts, using their business process perspective. Other stakeholders from each contract party can be involved in the creation, negotiation and controlling. Using blockchain INHUBBER applies single source of truth and identity assurance principles to the contract world. Using AI, they enable contracts to be consistent, executable and connected to IoT.
Hi Leonid! Could you please introduce your work with INHUBBER and tell us a bit more about what led to your developing the software?
Hello, my name is Leo and I'm CEO and Cofounder or INHUBBER a smart B2B SaaS contract lifecycle management platform based on Whitebox AI and Blockchain. With the blockchain, we provide a high level of trust within the platform, digital Identity management, and digital signature. With the white box AI we improve the consistency and compliance of the contracts.
Our Startup journey started two years ago. My team and I were researching the use of Blockchain in supply chain management. And supply chain management is mostly the organization of informational, financial and physical flows between the suppliers and customers. Blockchain on the other side is perfect to transmit money and information trusted and fast way. At some point, we realized that actually these financial, informational and physical flows are described in the business contracts. And we made a pivot and used our previous research to create one of the worlds first contract management platforms based on blockchain and white box AI.
Who have been some of the biggest clients of INHUBBER thus far? What are your main client outreach channels?
INHUBBER is a young startup which was founded from a German ministry of economic affairs financed project at HU Innovations of the HU Berlin. We incorporated in March 2019 but our project on the use of blockchain and AI is already two years old. At this moment we are finalizing our MVP and raising capital for the further development of the technology. Our MVP is a contract management platform with project management components and a blockchain based P2P encryption. Basically, if you use INHUBBER contract management today you can upload your contract or any digital file, attach some deadlines or milestones to it. And send it to your partners for the signature. F.e. Imagine an NDA agreement with some attached files. Normally you could only sign the NDA but not the files or information that is not supposed to be disclosed. Well with INHUBBER you can sign any digital file Text Video, SOund Cad, etc. We are still in the POC phase working with the pilot customers. And if you want to digitalize the contracting process in your startup please contact me and we will work out a great cooperation plan. As you see the LAMA app became our client outreach channel. And it also reflects how we were finding our pilot customers until now, through pitches, presentations on conferences and references. Later we are aiming a fully digitalized client acquisition.
Why does operating on blockchain elevate INHUBBER's security far above that of potential competitors?
Blockchain is a young technology that is significantly improving the trust concept within the platforms. Just imagine with the blockchain we are able to send money over e-mail almost instantly at close to no costs without bank or PayPal. We at inhubber use blockchain to send P2P encrypted information between the users of our platform. Meaning nobody even not INHUBBER team can read what our customers are exchanging between each other. Additionally, we are using Blockchain to provide a timestamp so-called Audit trail on every process, document at the Inhubber platform. Before the blockchain, this function could be provided only through a reputable intermediary and was based solely on the trust of this intermediary. Actually, any employee with access to such legacy systems of our competitors can modify such timestamp. One other function is the digital signature. Here we are able to provide such digital signature as secure and as stable as our competitors but to only at a fraction of the costs. We can do it because blockchain replaces a big part of the infrastructure that is needed to provide digital signature today. By infrastructure I mean several independent servers additional power supplies etc blockchain through its nature is a distributed trusted system
What are some of the main issues contractors and companies face when establishing guidelines and trust with each new deal?
The biggest issue of any business relation of today is the same as it was when the business relations were invented. This issue is TRUST. What changed today is that today we have businesses with partners who sometimes never saw or some times even talked to each other. because these partners are living in another corner of the world in another timezone speaking diferent languages having diferent cultures. On top of this, most of the modern contracts are performance-based. Meaning we are promising certain actions if certain conditions are fulfilled. However, over 80 % of all businesses do not have the means to check the performance described in the contracts. MEaning we were being promised discounts but not getting them, or we need to pay fees for missing a deadline or a milestone just by forgetting or not knowing of its existence. INHUBBER providing with its technologies additional trust to the people involved in the business relations. Meaning even if we never saw or talked to somebody we can still be sure that this person and not his secretary approved the business deal. If the milestone or deadline is missing INHUBBER contract management notifies the involved parties. If there are disagreements based on the contract creation process parties can use the blockchain timestamps for the independent process audit. Alone these three functions can eliminate most of the unnecessary litigations between the businesses.
Our major goal for the coming year is to become the Europes leading platform to send and sign business contracts. Beside this, we are applying for the HORIZON 2020 funding with a great consortium lead by one of the biggest research centers in Germany. Within the startup, we are aiming to grow our team by 4 to 6 senior and advanced developers to increase the pace of product development. In the winter of 2019/2020, we will go for another financing round raising approx half a million Euros from VC.
What's next for your work with INHUBBER? What are the main projects, partnerships, and services you'll be focusing on in the next year?
The biggest issue of any business relation of today is the same as it was when the business relations were invented. This issue is TRUST. What changed today is that today we have businesses with partners who sometimes never saw or even talked to each other. Fe because they are living on different continents in different time zones. On top of this, most modern contracts are performance-based. In such contracts, we are promising certain actions if certain conditions are fulfilled. However, over 80 % of all businesses do not have the means to check the performance described in the contracts. Thise businesses are missing deadlines, milestones, discounts described in the contracts just because they can't monitor them. INHUBBER providing with its technologies additional trust to the people involved in the business relations. Meaning even if we never saw or talked to somebody we can still be sure that this person and not his secretary approved the business deal. If the milestone or deadline is missing INHUBBER contract management notifies the involved parties. If there are disagreements based on the contract creation process parties can use the blockchain timestamps for the independent process audit. Alone these three functions can eliminate most of the unnecessary litigations between the businesses.