 On the left of the "Bowtie" representation, the negotiation and formation of a legally binding contract leads to a single parent document that defines all of the intent of that agreement.On the right, the performance of that agreement might involve many transactions to be accounted for, logically separated from the meaning of the issue.The join between the legal world and the accounting world is formed by the hash — each transaction locks in the terms and conditions of the precise deal of the parties by including the hash of the contract in every relevant transaction record, yet the operation of the transactions and the issuance of the contract are cleanly separated and thus perverse incentives are eliminated.