The UK Law Commission is looking into how blockchain-based smart contracts could play a role in the UK legal system. There are very few places in the world where a smart contract would be considered legally binding. The UK is looking into how smart contracts for legal system use could make the UK more competitive.
A working paper that was released last Thursday by the UK Law Commission stated a formal research project that will look into how smart contracts for the legal system could be of benefit. The agency said specifically that their work would, “ensure that the law is sufficiently certain and flexible to apply in a global, digital context and to highlight any topics which lack clarity or certainty.”
Smart contracts for legal system use are a potentially revolutionary tool for numerous kinds of legal work. While the potential for smart contracts for legal system use is great, the UK Law Commission said that “There are questions about how this feature (smart contract) would interact with contract law concepts such as implied terms or contracts which are held to have been void from the outset. There are also questions about data protection law.”
Smart contracts for legal system in the UK could create competitive advantages
The legal system in the UK is trusted all over the world. Smart contracts for legal system implementation in the UK could bring a major first-mover advantage to the UK. It would cut down on the cost of litigation, and the potential market is enormous.
Many organizations around the world are working with smart contracts for legal system applications, so a trusted settlement jurisdiction would be valuable. Smart contracts are beginning to be used in international trade settlement, which is a massive market. If the UK court system became a front-runner in smart contracts for legal system jurisprudence, the potential for increased legal revenues is substantial.
Connecting the world
International contracts are a complex business. Smart contracts could make doing business internationally much easier. With a solid legal foundation, it can make global trade efficient, and the UK would be able to apply its legal system to a new market that is growing all the time.
The UK has been a leading destination for blockchain innovation. Earlier this year a UK MP called for a “Blockchain Officer” to oversee development to be established, and more recently Matt Hancock predicted that Blockchain would have a “monumental impact” in, “vast areas of public life.” Clearly, the UK is working to integrate a new technological innovation that has a lot of promise.
Nicholas Say was born in Ann Arbor, Michigan. He has traveled extensively, lived in Uruguay for many years, and currently resides in the Far East. His writing can be found all over the web, with special emphasis placed on realistic development, and the next generation of human technology.