The present invention generally relates to block chain mechanisms and more particularly, relates to a system and a method for generating a smart contract between two or more users and real-time monitoring/controlling the smart contract by determining alert hash values every time there is a change in said contract or there is completion of any action mentioned in said contract.
BACKGROUND OF THE INVENTION:
This section is intended only to provide background information pertaining to the similar field of the present invention, and may be used only to enhance the understanding of the present invention and not as admissions of prior art.
It is observed that unambiguous and validated contracts reduces the chances of disputes between individuals/organisations and also aids efficient jurisdiction wherever required. However, many developing countries lack efficient mechanism for a timely execution and documentation (legal compliance) of a contract between two individuals/organisations which is an essential prerequisite for success and growth of the individuals/organisations in any economy. One of the primary reasons behind this failure is absence/improper contracts between the individuals/organisations (parties) to formalise their agreements.
In an era of digital network, the blockchain technology is paving way for several organisations/individuals who are aiming to operate on new business models based on block chain technology to overcome said failure of inadequate contract execution. However, the existing systems for generating smart contracts, using blockchain technology, poses inadequate processing and managing capabilities for generating and managing the contract. In one such system, the contracts cannot be modified after saving. Another existing system fails to save evidence for accepting the contract or the validity of the contract. Further, the existing systems are unable

to continuously monitor the contract by monitoring/tracking any change made in the contract. The existing systems also fail to disclose any provision for the parties/users of the contract to add/delete desired/expected actions in terms of finite milestones and commitments in the already generated contract. Moreover, the existing systems are unable to provide any sort of legal compliance to the contract to ensure their validity. Yet another limitation of the existing systems lies in the inability to obligate the parties/users involved in the contract to perform their respective functions. Thus, the existing systems significantly face performance and scalability issues, thereby resulting in contract failures.
Accordingly, in view of the aforementioned limitations inherent in the existing contract generation and execution methods, there exists a need of an Artificial Intelligence based system and method for a smart contract (also legally complied) between two or more users and automatically monitor said contract by triggering alert on every modification in the contract.
SUMMARY OF THE INVENTION:
In light of the limitations of the existing conventional systems as discussed above, it is evident that there arises a need for an efficient automated system and method for substantially overcoming said limitations. It is therefore, an objective of the present invention to generate a smart contract, efficiently execute and manage said contract in a synchronised and real time manner. Another object of the present invention is to enable the users involved in the contract to add/delete expected actions/transactions/obligations/commitments in the contract and also, to automatically compel/obligate said users to perform the respective functions/duties by periodically sending reminders. Yet another object of the present invention is to enable said users to incorporate negotiable instruments (including, but not limited to, I Owe you (IOU), promissory notes, and bills of exchange) in the contract. Thus, the present invention aims to provide a secured and efficient mechanism for generating and executing a smart contract between two users.

The afore-mentioned objectives and other aspects of the embodiments herein will be better appreciated and understood when considered in conjunction with the following description and the accompanying drawings. It should be understood, however, that the following descriptions, while indicating preferred embodiments and numerous specific details thereof, are given by way of illustration and not of limitation. Many changes and modifications may be made within the scope of the embodiments herein without deviating from the spirit thereof. Therefore, this section is intended only to introduce certain objects and aspects of the present invention, and is therefore, not intended to define key features or scope of the subject matter of the present invention.
More particularly, the present invention relates to an automated method for generating and monitoring a smart contract between a first user and a second user using block chain technology. The method comprises steps of initiating an agreement between the first user and the second user based on one or more content received from the first user to generate the smart contract with the second user; determining a first hash value of a block of a blockchain, wherein the first hash value indicates agreement creation; determining a second hash value of the block in an event the agreement is approved by the first user and the second user, wherein the second hash value indicates agreement approval; generating the smart contract from the agreement based on one or more legal procedures, and determining a third hash value of the block, wherein the third hash value indicates generation of the smart contract; executing the smart contract and determining a fourth hash value of the block, wherein the fourth hash value indicates execution of the smart contract; recording said smart contract in the block to append the block in the blockchain, wherein the block has a final hash value; and monitoring the agreement and the smart contract by triggering an alert in an event one or more changes occurs in the smart contract.
The method comprises step of registering and authenticating the first user and the

second user based on one of a password and a biometric authentication. The method further enables the first user and the second user to one of add, delete and amend one or more actions in the agreement, wherein the one or more actions comprises terms of the agreement, one or more negotiable instruments, transactions, commitments and milestones, and each action has a hash value. The completion of said actions is further recorded in the block of the block chain. The method further enables the first user and the second to one of add, delete and amend one or more witness and nominees for the smart contract. The method further enables the first user and the second user make changes in the one or more content populated in the agreement.
The method also comprises step of sending periodic reminders to the first device and the second device, wherein said periodic reminders relates to the one or more actions. Also, the method comprises step of storing at least one of a list of agreement templates, a term sheet, one or more actions and one or more disputes.
Another aspect of the present invention relates to an automated system for generating and monitoring a smart contract between a first user and a second user using one of block chain and distributed ledger technology. The system comprises an agreement unit configured to initiate an agreement between the first user and the second user based on one or more content received from the first user to generate the smart contract with the second user; a processing unit configured to determine a first hash value of a block of a blockchain, wherein the first hash value indicates agreement creation, determine a second hash value of the block in an event the agreement is approved by the first user and the second user, wherein the second hash value indicates agreement approval, determine a third hash value of the block, wherein the third hash value indicates generation of the smart contract, and determine a fourth hash value of the block, wherein the fourth hash value indicates execution of the smart contract. The system further comprises a contract unit configured to generate the smart contract from the agreement based on one or more legal procedures while executing the smart contract. Also, the system comprises a

storage unit configured to record the smart contract in the block to append the block in the blockchain, wherein the block has a final hash value; and an alert unit configured to monitor the agreement and the smart contract by triggering an alert in an event one or more changes occurs in the smart contract.
The system further comprises a registration unit configured to register and authenticate the first user and the second user based on one of a password and a biometric authentication; and a communication unit for communicating with the first user and the second user.
BRIEF DESCRIPTION OF THE DRAWINGS:
The drawings mentioned in this section disclose exemplary embodiments of the claimed system and method. Detailed description of well-known components and processing techniques are omitted to not unnecessarily obscure the embodiments herein. Further, the components/modules and steps of a process are assigned reference numerals that are used throughout the description to indicate the respective components and steps. Other objects, features, and advantages of the present invention will be apparent from the following description when read with reference to the accompanying drawings.
Figure 1 illustrates a system overview of the present invention for generating a smart contract between a first user [101] and a second user [102] and monitoring said contract according to an embodiment herein.
Figure 2 illustrates an exemplary scenario of determining a plurality of hash values and subsequently determining final hash value of a block [310] of a block chain [300] according to an embodiment herein.

Figure 3 illustrates an exemplary block chain 300 having one or more blocks [301-306], according to an exemplary embodiment of the invention.
Figure 4A illustrates a method overview [400A] of the present invention for generating a smart contract between a first user [101] and a second user [102] according to an embodiment herein.
Figure 4B illustrates a method overview [400B] of the present invention for monitoring a contract between a first user [101] and a second user [102] according to an embodiment herein.
DETAILED DESCRIPTION:
This section is intended to provide explanation and description of various possible embodiments of the present invention. The embodiments used herein, and the various features and advantageous details thereof are explained more fully with reference to non-limiting embodiments illustrated in the accompanying drawings and detailed in the following description. The examples used herein are intended only to facilitate an understanding of ways in which the embodiments herein may be practiced and to further enable the person skilled in the art to practice the embodiments used herein. Also, the examples/embodiments described herein should not be construed as limiting the scope of the embodiments herein. Corresponding reference numerals indicate corresponding parts throughout the drawings.
The present invention relates to a system and a method for generating a smart contract between a first user and a second user based on the user's requirements using block chain technology to eliminate any risk of fraud, wherein the user's requirements may be received from the user devices of the first user and the second user. The present invention further encompasses monitoring the generated smart contract by monitoring/tracking each action listed in the contract and generating an

alert whenever there is a change (compliance, non-compliance, amendment and termination) in the action. The present invention also encompasses determining hash values for each important action and stage in the agreement and the contract to validate the contract by verifying the determined hash values.
As used herein 'blockchain' refers to a chain of blocks linked using cryptography. The blocks of the blockchain store digital information such as transactions, records for the users involved in the transactions of the contract. The blockchain includes every form of electronic, computer based distributed ledgers. With respect to the present invention, the blocks comprises information pertaining to agreement and contract between two users along with other contents. Each block of the block chain corresponds to one/single contract generated, and also each block has a unique value known as hash value (final value) different from the values of other blocks. In an embodiment, the block has a plurality of transactions/stages/actions each having a hash value. The final hash value of the block is determined based on Merkle tree for all the hash values of the plurality of transactions/stages/actions in the block. The merkle tree is a structure that helps to verify the consistency and content of the data. The structure and working of merkle tree is explained in detail in Figure 2.
As used herein, the term 'smart contract' refers to a contract stored in a block of a blockchain. The smart contract is generated between two or more users/parties (first user and second user) by legalising the agreement made between said parties. Also, the smart contract comprises a plurality of transactions, actions, commitments each having a hash value. The smart contract is monitored to check if each action, transaction, commitment is changed/completed by the first user and/or the second user.
As used herein, the term 'agreement' refers to a binding arrangement between two parties as to a course of action. With respect to the present invention, the agreement is made between the first user and the second user based on an agreement template selected by the first user. Further, the agreement comprises one or more variables

such as terms of the contract, tenure of the contract, annexures for the agreement, payment and other financial commitments, milestones and performance requirements, actions, end of term arrangements, witness of agreement, means and modes for acceptance of contract, nominee for specific or general functions, statutory fee and duties, agreement for Dispute Resolution Mechanism, ownership, insurance, contract compliance and management and any such variable as may be obvious to a person skilled in the art. The present invention encompasses the first user and the second user to further add or delete or amend information/content corresponding to said variables in the agreement. In an embodiment, the terms and conditions may be selected from a term sheet displayed by the system.
As used herein, the term 'one or more content' refers to information received from the first user to be included in the agreement and in the contract. In particular, the one or more content refers to information corresponding to the variables contained in an agreement template selected by the first user.
As used herein, the term 'transaction' refers to financial transactions to be performed by one of the first user and the second user, wherein said financial transaction comprises debit and credit transactions/dealings/communications. Each executed transaction is recorded in the block of the blockchain and such block is then appended in the blockchain. In an exemplary embodiment, each transaction/action/commitment/milestone has a status such as completed, under progress, delayed and any such status as may be obvious to a person skilled in the art.
As used herein, the term 'milestone' or 'commitment' may be monetary commitment or action commitment. The commitment further comprises a plurality of fields including, but not limiting to, committed by, committed to, description, parameter, by date, due date and confirmed by. Further, the terms 'milestones' and 'commitments' may be interchangeably used throughout the description.

As used herein, the terms 'first user' and 'second user' may be one of an individual, private/government business/corporate/company/proprietor, agent, assignees, executors, legal representatives, administrators, authorised person/body and any such entity/person interested in binding/generating a contract. Further, the present invention is elucidated by taking illustrative example of first user and second user, however, the present invention is not limited to only two users and therefore encompasses nth user/s, wherein n is an integer corresponding to number of parties/users who wish to enter into a mutually agreeable and binding contract.
As used herein, the term 'user device' herein refers to a device used by the first user and the second user. Further, the user device refers to any computing device including, but not limiting to, a smart phone, a feature phone, a tablet, a computer, a laptop, a human-machine interface or implant, and any such device as may be obvious to a person skilled in the art. Further, the user device is configured to communicate with the system through a network entity.
As used herein, the term 'processing unit' refers to any digital processing logic, intelligent and analytical skills for performing functionalities in accordance with the present invention. In an embodiment, the processing unit is an Artificial Intelligence (AI) device capable to determine hash values of the block in accordance with the present invention. Also, in another embodiment, the Artificial Intelligence device is also capable to perform all the steps encompassed by the present invention.
As used herein, the term 'storage unit' refers to a dashboard/database capable to store the one or more content, the variables, the contract, the agreement, a list of agreement templates, one or more disputes, the term sheet comprising terms and conditions of the agreement. In an embodiment, the storage unit may be a server such as cloud storage, remote database, local database or human-machine interface or implant, or any such dashboard/database as known in the art.
The terms 'create' and 'generate' may refer to similar meaning and may be

interchangeably used throughout the specification.
Further, Figure 1 illustrates a system architecture for generating a smart contract between a first user and a second user and monitoring said contract according to the embodiments of the present invention. As illustrated in Figure 1, the first user [101] and the second user [102] communicates with the system [100] in accordance with the embodiments of the present invention. The system [100] comprises a communication unit [103], a display unit [104], a registration unit [106], an agreement unit [105], a processing unit [107], a contract unit [108], a storage unit [109] and an alert unit [110], wherein said units are communicably coupled to each other in accordance with the embodiments of the present invention. The different units described herein are exemplary, and therefore the present invention may be performed using one or more units or may be performed by a single unit. Alternatively, more number of units as described herein may also be used to perform the invention.
The first user [101] and the second user [102] are registered on the system [100] by the registration unit [106] to enable the first user [101] and the second user [102] to communicate with the system [100], in an authenticated manner, via the communication unit [103]. In an embodiment, the registration unit [106] is configured to generate a one-time password for the first user [101] and the second user [102] and said password is communicated to the first user [101] and the second user [102] by the communication unit [103]. In an exemplary embodiment, said password is communicated via an email or message. In another embodiment, the registration is based on a biometric authentication, wherein the biometric authentication may include face detection, finger detection and any such biometric related detection as may be obvious to a person skilled in the art. Further, when the first user [101] and the second user [102] logins into the system [100] using said password or any other above-mentioned authentication means, and user details, the system [100] enables the first user [101] and the second user [102] to function in accordance with the present invention. The present invention also encompasses an

additional functionality of 'forgot password' to the first user [101] and the second user [102].
Further, when the first user [101] logins into the system [ 100], the display unit [ 104] of the system [100] displays a list of agreement templates to the first user [101] from which the first user [101] selects an agreement template for generating a contract with the second user [102]. In an exemplary scenario, the first user [101] is enabled to search through said list of agreement templates using a variety of keywords based on the requirements. The agreement template selected by the first user [101] comprises the plurality of variables including, but not limiting to, tenure, payment and other financial matters, performance requirements, actions, end of term arrangements, agreement for Dispute Resolution Mechanism (ADRM), ownership, insurance, contract compliance and management. The present invention encompasses determining a hash value for each dispute occurred between the first user and the second user.
Pursuant to the selection of the agreement template, the first user [101] is enabled to add/delete/amend the one or more content corresponding to said plurality of the variables in the agreement template. Also, the first user [101] is enabled to add one or more actions in the agreement, wherein said actions comprises terms of the agreement, the one or more negotiable instruments, the transactions, the commitments and the milestones, wherein each action has a hash value determined by the processing unit [107]. Said one or more content is communicated to the communication unit [103] of the system [100].
On receiving the one or more content from the first user [101], the agreement unit [105] of the system [100] is configured to initiate an agreement between the first user [101] and the second user [102]. In an exemplary embodiment, the display unit [104] displays one of a term sheet view and an agreement view, wherein the term sheet view comprises displaying of the agreement term sheet variables with or without their data value and with or without the agreement linked/tagged, while the

agreement view comprises displaying the plurality of variables, with or without their data values, within the corresponding content of the agreement, which may or may not be amended by the first user [101] and/or the second user [102]. Simultaneously, the present invention encompasses creating a block [310] for every contract/agreement created [shown in Fig. 2], wherein the block [310] corresponds to the agreement/contract between the first user [101] and the second user [102], and said block [310] comprises a plurality of hash values for each transaction/stage/action. The block [310] creation is further explained in detail in figure 3.
In particular, the processing unit [107] is configured to determine a first hash value of the block [310], wherein the first hash value indicates stage of agreement creation. Further, the agreement is notified to the second user [102] by the communication unit [103] of the system [100]. The second user [102] is further enabled to either accept the agreement or reject the agreement, or make suggestions and request for amendment to the first user [101], and also the second user [102] is enabled to make changes in the agreement. In an exemplary scenario, the second user [102] is enabled to add, delete or amend one or more actions or conditions or clauses in the agreement.
In an event the agreement is approved by the second user [102] and the first user [101], the processing unit [107] is configured to determine a second hash value for the block [310], wherein said second hash value indicates agreement approval
Thereafter, the contract unit [108] is configured to generate the smart contract from the agreement based on one or more legal procedures, wherein said contract may or may not require any further AI based legal vetting based on the requirements. In an embodiment, the one or more legal procedures refer to legal vetting of the agreement, complying stamp duty on the agreement and notarisation of the agreement. In an exemplary scenario, the agreement is complied with stamp duty based on at least one of (i) statutory and jurisdictional rules and (ii) digital

notarisation (offline or online), wherein the contract has a unique Document Identification Number (DIN) as may be obvious to a person skilled in the art. Simultaneously, the processing unit [107] is configured to determine a third hash value for the block [310], wherein said third hash value indicates generation of the smart contract.
Further, once the contract has been generated, the communication unit [103] requests the first user [101] and the second user [102] to validate the contract using authentication passwords. In an embodiment, the communication unit [103] requests the first user [101] and the second user [102] for the approval by transmitting a password (confirmation) to the first user [101] and the second user [102]. In an exemplary embodiment, the communication unit [103] transmits KYC data in a prescribed form to the first user [101] and the second user [102], pursuant to which the first user [101] and the second user [102] transmits/shares digital signature certificate or digital signatures, encrypted or unencrypted, with the communication unit [103] of the system [100]. In an embodiment, the execution is based on a biometric authentication confirmed by the first user [102] and the second user [104], wherein the biometric authentication may include face detection, finger detection and any such biometric related detection as may be obvious to a person skilled in the art.
In an event the digital signatures (or authentication by other means as stated above) of the first user [101] and the second user [102] are saved in the storage unit [109], the first user [101] and the second user [102] notifies the approval/confirmation to the system [100]. On receiving said digital signatures, the contract unit [108] is configured to execute the smart contract by applying said digital signatures of the first user [101] and the second user [102] on the contract in an event the first user [101] and the second user [102] accepts the contract by confirming the password. Simultaneously, the processing unit [107] is configured to determine a fourth hash value for the block [310], wherein said fourth hash value indicates execution of the smart contract.

Once the smart contract is executed, the storage unit [109] is configured to record the smart contract in the block [310] to append the block [310] into the blockchain [300], wherein the block [310] has the final hash value based on the plurality of hash values as described herein. The present invention further encompasses displaying, by the display unit [104], a clean version of the executed contract along with the one or more actions, the negotiable instruments (including but not limited to, I Owe you (IOU), promissory notes and bills of exchange) and any such information as may be obvious to a person skilled in the art. In an exemplary embodiment, a read only copy of said contract is displayed to the first user [101] and the second user [102]. In another exemplary embodiment, if the first user [101] and the second user [102] approves, the read only copy of said contract is displayed to any person using the system [100].
Further, in an embodiment, the first user [101] and the second user [102] is enabled to add, delete or amend one or more witnesses and/or nominees for the contract. Pursuant to approval on said one or more witnesses and nominees from the first user [101] as well as the second user [102], the processing unit [107] is configured to make said changes by adding/deleting/amending the said one or more witness and nominees in the contract along with the corresponding digital signatures of the one or more witness and nominees. In an embodiment, the processing unit [107] is configured to add/delete/amend one or more nominee and/or witness against a particular contract in an event KYC details and authentication of said nominees and witnesses are present. In an embodiment, hash value is generated for each witness and/or nominee.
In another embodiment, the first user [101] and the second user [102] are enabled to add/delete/amend the one or more negotiable instruments (comprising but not limited to promissory notes, I Owe you (IOU) and bills of exchange) in the agreement. Pursuant to the approval from the first user [101] as well as the second user [102], the processing unit [107] is configured to make changes in the agreement

by adding/deleting/amending said one or more negotiable instruments in the agreement. In an embodiment, the one or more negotiable instruments may refer to legal binding document similar in nature to any common law contract. Said one or more negotiable instruments may be one of the selected agreement template and agreement template from said list of agreement templates. In an embodiment, said one or more negotiable instruments are shared with one or more financial modules for funds/financing, etc., wherein the financial modules comprise one or more banks and any such organisation as may be obvious to a person skilled in the art. The present invention also encompasses triggering a hash value for each negotiable instrument.
In another embodiment, the processing unit [107] is configured to calculate payments to be made by each user for each transaction included in the agreement. In an exemplary scenario, the payments are calculated based on the selected agreement. The calculated payments are incorporated in the agreement after the approval from the first user [101] as well as the second user [102].
In yet another embodiment, the storage unit [109] is configured to store the list of agreement templates, the agreement, the term sheet, the one or more annexures, the one or more content, the one or more milestones or commitments, the one or more negotiable instruments (including I Owe you (IOU), promissory notes and bills of exchange), the one or more witness and/or nominees, the one or more actions, the contract and any such information as may be obvious to a person skilled in the art. Also, the storage unit [109] is further configured to record the completion of said one or more actions in the block [310]. Further, the display unit [104] is also configured to display the list of agreement templates, the term sheet, the one or more content, the one or more witness and nominees, the one or more actions, the contract, the balance sheet, the terms and conditions, the payment and any such information as may be obvious to a person skilled in the art.
In an embodiment, a payment gateway or payment module or wallet is provided

that allows the users to make payments pertaining to stamp duties, or for honouring the financial commitments made in the agreement or the contract. Accordingly, in a preferred embodiment, any such payment, especially those pertaining to fulfilling the financial commitments, via the payment gateway or payment module, triggers a smart contract in the blockchain, and a block and a hash value is created recording the transaction in terms of date, time, amount and context.
The present invention encompasses authenticating at least one of the first user, the second user, the agreement, the contract, the one or more negotiable instruments, the one or more actions (terms of the agreement, one or more negotiable instruments, transactions, commitments and milestones) and any such parameter related to the contract as may be obvious to a person skilled in the art, wherein said authentication is based on the DIN generated by the system [100].
Further, the present invention encompasses monitoring the smart contract generated between the first user [101] and the second user [102] by monitoring each stage/action of the contract and triggering an alert whenever there is change (compliance, non-compliance, amendment and termination in any stage/action of the contract) in at least one of the transaction/actions/commitments/milestones and any such information as may be obvious to a person skilled in the art. The alert unit [110] of the system [100] is configured to monitor/track the transactions/actions/commitments/milestones in the contract and trigger an alert on completion of said at least one transaction/action/commitment/milestone by one of the first user [101] and the second user [102]. In an exemplary scenario, when the first user [101] completes the payment for at least one transaction, the alert unit [110] notifies the second user [102] and triggers an alert. In an embodiment, the alert unit [110] updates the status of the completed transaction as 'completed successfully'. Further, the hash value of said transaction is re-determined and re-confirmed to validate the transaction. In an alternative embodiment, the transaction/action is delayed, the system [100] enables the first user [101] and the second user [102] to amend the agreement/contract by changing the timelines for

said transaction/action after approval from the first user [101] and the second user [102], and in such case, the status is changed to 'non completion' or 'delayed' or 'amended'. In another instance, if any transaction/action/contract is mutually terminated, the status is changed to 'contract/action incomplete-mutually terminated'. In yet another instance, when the first user [101] and the second user [102] decide to terminate the contract, the status is changed to 'contract incomplete-action requested before termination'. In another instance if one of the first user [101] and the second user [102] decides to enforce the contract through Dispute Resolution Mechanism, the contract is categorised as 'under Dispute Resolution', wherein a hash value is determined for each dispute occurred between the first user and the second user.
Further, the present invention encompasses sending periodic reminders to at least one of the first user [101] and the second user [102] for completing at least one transaction allocated to the first user [101] and/or the second user [102]. Also, the alert unit [110] is configured to transmit a periodic status report to the first user [101] and the second user [102], wherein said status report comprises the status of each transaction/action/commitment/milestone. Further, the present invention further enables the first user [101] and the second user [102] to decide process of sending the reminders by manually setting the time/condition for sending the reminder.
Furthermore, in an exemplary embodiment, the system [100] provides one or more AI based suggestions/recommendations for least one of the agreement templates, the one the one or more contents, the plurality of variables, the terms of the agreement, the term sheet, the payment, the one or more negotiable instruments based on various aspects such as interest of the first user [101] and the second user [102], previous history and experience of the first user and the second user and any such aspect as may be obvious to a person skilled in the art. Also, in an exemplary scenario, the system [100] provides one of more agreement template based on the first user [101] i.e. for example if the first user [101] is a bank, the system [100]

provides one or more agreement templates relating to financing, mortgage, guarantee etc.
Further, Figure 2 illustrates an exemplary scenario of determining a plurality of hash values and subsequently determining final hash value of a block of a block chain according to an embodiment herein. As illustrated in Figure 2, exemplary 4 hash values (for 4 transactions) are considered based on which the final hash value of the block [310] is determined using merkle tree, wherein the merkle tree helps in organising the transactions. The hash values are determined using at least one of the hashing algorithms such as MD5, SHA-3 etc. The final hash value is determined as below:
Step 1: Each transaction/action has a hash value determined by the processing unit [107]. For example:
Tl represents a regular transaction/action of agreement creation;
T2 represents a regular transaction/action of agreement approval;
T3 represents a regular transaction/action of contract generation; and
T4 represents a regular transaction/action of contract execution; Step 2: The transactions are hashed individually to give/determine corresponding hash values. For example, a hash function is applied on Tl to give corresponding hash value of HI. Likewise, T2, T3 and T4 will have corresponding hash values of H2, H3 and H4 respectively. Step 3: The new hash values are then combined with adjacent partner/value to be hashed once again. For example, the hash values HI and H2 are combined and hashed to produce hash value HI2. Likewise, H3 and H4 are combined and hashed to produce hash value H34. This process is repeated until the last hash value i.e. the final hash value H1234 is obtained. Thus, the block [310] has the final hash value. The hash values maintains integrity of the data recorded by the block [310] and avoids any conflict or unauthorized changes made in the data recorded by the block [310].
Further, Figure 3 illustrates an exemplary block chain [300] having one or more blocks, according to an exemplary embodiment of the invention. As illustrated in

Figure 3, the exemplary blockchain [300] contains six exemplary blocks [301] to block [306]. In particular, the block [301] is connected with block 302, block 302 is further connected with block [304], [305], and [303]; and block [303] is further connected with block [306]. Each of said blocks [301-306] represents a specific smart contract and further records the transactions executed or changes according to respective contracts. Further, said blocks [301-306] maybe secured and protected using any known cryptographic hash function, and has a hash value for maintaining integrity of the data. Further, in accordance with the present invention, the storage unit [109] is configured to append the block [310] to the block chain [300]. In particular, the block [310] is appended into the block chain [300] in accordance with the nature of the executed smart contract.
Figure 4A illustrates a method overview of the present invention for generating a smart contract between a first user [101] and a second user [102] in accordance with the present invention. The method [400A] may comprise a series of following operational steps to accomplish the objective encompassed by the present invention:
At step 402, the registration unit [106] registers the first user [101] and the second user [102] to enable the first user [101] and the second user [102] to communicate with the system [100] via the communication unit [103]. In an exemplary embodiment, one time password for registration is communicated the first user [101] and the second user [102] via an email or message. In another embodiment, the registration is based on the biometric authentication, wherein the biometric authentication may include face detection, finger detection and any such biometric related detection as may be obvious to a person skilled in the art.
At step 402, the display unit [104] displays a list of agreement templates to the first user [101] from which the first user [101] selects an agreement template for generating a contract with the second user [102]. The agreement template selected by the first user [101] comprises the plurality of variables including, but not limiting

to, tenure, payment and other financial matters, performance requirements, actions, end of term arrangements, dispute resolutions, ownership, insurance, contract compliance and management.
At step 403, when the agreement template is selected, the first user [101] is enabled to add/delete/amend the one or more content corresponding to said plurality of the variables in the agreement template. Also, the first user [101] is enabled to add one or more actions in the agreement, wherein said actions comprises terms of the agreement, one or more negotiable instruments, transactions, commitments and milestones, wherein each action has a hash value. Said one or more content is communicated to the communication unit [103] of the system [100].
At step 404, the agreement unit [105] of the system [100] initiates the agreement between the first user [101] and the second user [102]. Simultaneously, the present invention encompasses creating the block [310] for every contract/agreement generated, wherein the block [310] corresponds to the agreement/contract between the first user [101] and the second user [102], and said block [310] comprises a plurality of hash values for each transaction/stage/action.
At step 405, the processing unit [107] determines the first hash value of the block [310], wherein the first hash value indicates stage of agreement creation. Further, the agreement is notified to the second user [102] by the communication unit [103] of the system [100], wherein the second user [102] is also enabled to make changes in the agreement. In an event the agreement is approved from both the users i.e. the first user [101] and the second user [102], the method [400A] leads to step 406. Alternatively, the method [400A] goes back to step 404.
At step 406 when the agreement is approved from both the users, the processing unit [107] determines the second hash value for the block [310], wherein said second hash value indicates agreement approval.

At step 407, the contract module [170] generates the smart contract from the agreement based on the one or more legal procedures including, but not limiting to, legal vetting of the agreement, complying stamp duty on the agreement and notarisation of the agreement. Simultaneously, the processing unit [107] determines a third hash value for the block [310], wherein said third hash value indicates generation of the smart contract. Further, once the smart contract is generated, the communication unit [103] requests the first user [101] and the second user [102] to validate the contract using authentication passwords. If the contract is validated, the method [400A] leads to step 408, or else the method [400A] goes back to step 404.
At step 408, the contract unit [108] executes the smart contract by applying said digital signatures of the first user [101] and the second user [102] on the contract in an event the first user [101] and the second user [102] accepts the contract by confirming the password. In an embodiment, said execution is based on a biometric authentication confirmed by the first user [102] and the second user [104]. Simultaneously, the processing unit [107] is configured to determine a fourth hash value for the block [310], wherein said fourth hash value indicates execution of the smart contract.
At step 409 and pursuant to execution of the smart contract, the storage unit [109] records the smart contract in the block [310] to append the block [310] into the blockchain [300], wherein the block [310] has the final hash value based on the plurality of hash values as described herein.
At step 410, the display unit [104] displays the clean version of the executed smart contract. In an exemplary embodiment, a read only copy of said contract is displayed to the first user [101] and the second user [102]. In another exemplary embodiment, if the first user [101] and the second user [102] approves, the read only copy of said contract is displayed to any person using the system [100].
Figure 4B illustrates a method overview of the present invention for monitoring the

smart contract between a first user [101] and a second user [102] in accordance with the present invention. The method [400B] may comprise a series of following operational steps to accomplish the objective encompassed by the present invention:
At step 420 when the smart contract has been generated between the first user [101] and the second user [102], the alert unit [110] monitors/tracks the transactions/actions/commitments/milestones contained in the smart contract. In an event there is change (compliance, non-compliance, amendment and termination) in at least one of the transaction/actions/commitments/ milestones, the method [400B] leads to step 421 or else the method keeps on tracking. Said tracking can be periodic or real time.
At step 421, the alert unit [110] triggers an alert on completion of said at least one transaction/action/ commitment milestone by one of the first user [101] and the second user [102]. In an exemplary scenario, when the first user [101] completes the payment for at least one transaction, the alert unit [110] notifies the second user [102] and triggers an alert. In an embodiment, the alert unit [110] updates the status of the completed transaction as 'completed successfully'. Further, the alert unit [110] sends periodic reminders to at least one of the first user [101] and the second user [102] for completing at least one transaction in an event said at least one transaction is not completed.
At step 422, the processing unit [107] re-determines the hash value of said transaction to validate the transaction.
The word "exemplary" is used herein to mean "serving as an example." Any embodiment or implementation described as "exemplary" is not necessarily to be construed as preferred or advantageous over other embodiments or implementations. The use of "including," "comprising," "having," "containing" and variations thereof, is meant to encompass the items/in formation listed

thereafter and equivalents thereof as well as additional items.
The subject matter of example embodiments, as disclosed herein, is described with specificity to meet statutory requirements. However, the description itself is not intended to limit the scope of this patent. Rather, the inventors have contemplated that the claimed subject matter might also be embodied in other ways, to include different features or combinations of features similar to the ones described in this document, in conjunction with other technologies. Generally, the various embodiments including the example embodiments relate to system and method for generating and monitoring the smart contract between two or more users.
As will be readily apparent to a person skilled in the art, the present invention may easily be produced in other specific forms without departing from its essential characteristics. The present embodiments should be construed as merely illustrative and non-restrictive and the scope of the present invention being indicated by the claims rather than the foregoing description, and all changes which come within therefore intended to be embraced therein.

WE Claim:

1.An automated method [400] for generating and monitoring a smart contract
between a first user [101] and a second user [102] using block chain
technology, the method comprising:
- initiating an agreement between the first user [101] and the second user [102] based on one or more content received from the first user [101] to generate the smart contract with the second user [102];
- determining a first hash value of a block [310] of a block chain [300], wherein the first hash value indicates agreement creation;
- determining a second hash value of the block [310] in an event the agreement is approved by the first user [101] and the second user [102], wherein the second hash value indicates agreement approval;
- generating the smart contract from the agreement based on one or more legal procedures, and determining a third hash value of the block [310], wherein the third hash value indicates generation of the smart contract;
- executing the smart contract and determining a fourth hash value of the block [310], wherein the fourth hash value indicates execution of the smart contract;
- recording said smart contract in the block to append the block [310] in the block chain [300], wherein the block [310] has a final hash value; and
- monitoring the smart contract by triggering an alert in an event one or more changes occurs in the smart contract.
2. The method [400] as claimed in claim 1, further comprising:
- enabling the first user [101] and the second user [102] to one of add,
delete and amend one or more actions in the agreement, wherein the
one or more actions comprises at least one of terms of the agreement,
one or more negotiable instruments, transactions, commitments and
milestones;

- determining a hash value against each of the one or more actions; and
- recording completion of said one or more actions in the block [310].

3. The method [400] as claimed in claim 1, further comprising enabling the first user [101] and the second user [102] to one of add, delete and amend one or more witness and nominees for the smart contract.
4. The method [400] as claimed in claim 1, further comprising sending reminders to the first user [101] and the second user [102], wherein said reminders relates to the one or more actions.
5. The method [400] as claimed in claim 1, further comprising registering and authenticating the first user [101] and the second user [102] based on a password or via biometric means; and enabling the second user [102] and the first user [101] to make changes in the one or more content populated in the agreement; and storing at least one a list of agreement templates, the terms of the agreement, a term sheet, the one or more negotiable instruments, the one or more actions and one or more disputes.
6. The method [400] as claimed in claim 1, wherein the one or more legal procedures refers to legal vetting of the agreement, complying stamp duty on the agreement and notarisation of the agreement.
7. The method [400] as claimed in claim 1, wherein the one or more content received from the first user [101] refers to information corresponding to one or more variables contained in an agreement template selected by the first user [101].
8. The method [400] as claimed in claim 1, wherein executing the smart contract comprises steps of

- transmitting a password to the first user [101] and the second user [102]; and
- applying digital signature of the first user [101] and the second user [102] on the contract in an event the first user [101] and the second user [102] accepts the contract by confirming the password.

9. The method [400] as claimed in claim 1, wherein said execution is based on a biometric authentication confirmed by the first user [102] and the second user [104].
10. The method [400] as claimed in claim 1, wherein the final hash value of the block [310] is based on a plurality of hash values determined for each action performed and wherein the one or more changes occurred in the smart contract relates to one of compliance, non-compliance, amendment and termination of the one or more actions.
11. An automated system [100] for generating and monitoring a smart contract between a first user [101] and a second user [102] using block chain technology, the system [100] comprising:

- an agreement unit [105] configured to initiate an agreement between the first user [101] and the second user [102] based on one or more content received from the first user [101] to generate the smart contract with the second user [102];
- a processing unit [107] configured to:
determine a first hash value of a block [310] of a block chain [300], wherein the first hash value indicates agreement creation,
determine a second hash value of the block [310] in an event the agreement is approved by the first user [101] and the second user [102], wherein the second hash value indicates agreement approval,
determine a third hash value of the block [310], wherein the third hash value indicates generation of the smart contract, and

determine a fourth hash value of the block [310], wherein the fourth hash value indicates execution of the smart contract;
- a contract unit [108] configured to generate the smart contract from the agreement based on one or more legal procedures, and execute the smart contract;
- a storage unit [ 109] configured to record the smart contract in the block [310] to append the block [310] in the block chain [300], wherein the block [310] has a final hash value; and
- an alert unit [110] configured to monitor the smart contract by triggering an alert in an event one or more changes occurs in the smart contract.

12. The system [100] as claimed in claim 11, further comprising a registration unit [106] configured to register and authenticate the first user [101] and the second user [102] based on one of a password and a biometric authentication.
13. The system [100] as claimed in claim 11, wherein the processing unit [107] is configured to:
- enable the first user [101] and the second user [ 102] to one of add, delete
and amend one or more actions in the agreement, wherein the one or
more actions comprises at least one of terms of the agreement, one or
more negotiable instruments, transactions, commitments and
milestones; and
- determine a hash value against each of the one or more actions; or
- to enable the first user [101] and the second user [102] to one of add, delete and amend one or more witness and nominees for the smart contract;
- to enable the second user [102] and the first user [101] to make changes in the one or more content populated in the agreement.

14. The system [100] as claimed in claim 11, wherein the alert unit [110] is further configured to send reminders to the first user [101] and the second user [102], wherein said reminders relates to the one or more actions.
15. The system [100] as claimed in claim 11, wherein the storage unit [109] is further configured to record completion or change in status of said one or more actions in the block [310] and to store at least one a list of agreement templates, the terms of the agreement, a term sheet, the one or more negotiable instruments, the one or more actions and one or more disputes.