Reality check — Smart contracts are still going to need smart lawyers

“(…) Smart contracts are basically automated contracts and only as smart as the lawyer who drafted them. Therefore, there isn’t necessarily a trade-off between lawyers and smart contracts but rather a challenge around how to apply the benefits of smart contracts to generate a more business-friendly legal environment. We believe smart contracts can and will be applied in any industry and in any market, for any interface (b2b, b2c, b2g, g2c, g2b). The relevant criteria, as we see it, for application of smart (automated) contracts, are whether the following characteristics exist in the type of activity involved:

  • Digital or electronic registration of title
  • Digital or electronic documentation of process
  • Transfer of payment and/or rights

Smart contracts will be able to automatically run complicated processes that involve complex if/then solutions, and even if at various stages some human involvement, assessment or input will be required, we believe that the smart contracts will still have the benefits of efficiency, accuracy and certainty that justify and promote their development. Some examples of complex transactions that can be made easier and faster are:

Real estate transactions and land registration: digital land registration, online submission of set documents, coupled with digital documentation of banking and finance transactions will allow the automated sale of real estate, including change of land title subject to the transfer of payment from the buyer to the seller.

Payment of insurance claims: especially general insurance where the damages can be photographed and reviewed manually or by computerized image recognition.

 Providing of licenses: subject to meeting officially monitored and documented processes

Investment and M&A transactions: especially shares and options transfers (…)”

via Brave New Coin http://ow.ly/Olyx30hMRMd

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