I have been reading up lately on smart contracts and found it interesting. So I would like to share a few things here on what I have learnt!
what are smart contracts?:
Smart contracts are a blockchain-based technology which executes and self-perform through coded instructions based on the information that is replicated and stored on a blockchain.
what is a blockchain?:
A blockchain is essentially a public ledger that allows the public to modify, contribute and store data records. It is highly secure because it is protected by powerful cryptography, and it is transparent and reliable because it is public and everyone can see each other's transaction on this digital ledger. It essentially cuts out the middleman of transactions, which renders this technology a MASSIVE DISRUPTOR in many industries.
3 main takeaway points on smart contracts:
1. It optimises the workload of a contract lawyer and made transactions transparent, convenient, reliable and cost/time effective. The opportunities it poses for clients, firms and lawyers are apparent.
2, Lawyers need to adapt its role when integrating this technology in their work. Issues such as having to recreate certain legal concepts (esp abstract ones like 'in good faith') to be compliant with code, and having to consider the multi-jurisdictional aspect of blockchain and take measures to resolve cross-border conflicts. This changes the priorities of contract lawyers and the complexity of the work they undertake.
3. This technology exists in an unregulated landscape, we can predict the rise of regulatory controls on blockchain and cryptocurrencies.
For more reading materials:
https://hackernoon.com/even-the-best-smart-contracts-wont-put-lawyers-out-of-work-anytime-soon-a224736e0235
http://www.cms-lawnow.com/ealerts/2018/02/building-blocks-of-the-future
Feel free to add more to this summary (I wanted to keep it short and informative) and feel free to correct any information I have gotten wrong! Let's discuss more about this exciting new legal technology.
