Dutch tech disruptor releases contract of the future

By Legal Things

With all the buzz about Bitcoin, ICO’s and CryptoKitties, the attention for real-life application of the blockchain technology feels lacking at times. Next to that, it’s not often that widely announced ICO’s and token sales come with an actual proof of concept, let alone a proof of work. Dutch tech disruptor LegalThings One however, started their token sale with a proof of work which might just shake up the way we’re using and communicating with contracts in the future.

One of the big hurdles facing blockchain technology at this point is the creation of legally binding contracts. If contracts are created on a blockchain, the past and every transaction in the drafting process becomes unambiguous. This aspect of blockchain technology offers an unprecedented way of creating legal certainty. Preachers of smart contracts (coded contracts that are self-executing) have claimed that these codes can replace the old-fashioned paper contract. This might be true for certain contracts that rely on fixed, objectively determinable criteria for execution, such as stock options, but smart contracts will never be able to contain every unforeseen circumstance. Neither will a smart contract allow for a deviation from its course, even when this is mutually agreed. This is a serious drawback when applying smart contracts to real life legal matters.

LegalThings claims to have found a solution for these problems, and has released a proof-of-work that contains their answer to these flaws. Their unique proposition “Live Contracts”, allows for real world and legally binding contracts to be logged on a blockchain. A Live Contract is a formal agreement that is programmed in a way that is understandable for both humans and computers. This allows for some tasks to be automated, and some to be left to human execution. By doing so, the process remains in control of humans rather than machines. Their proof-of-work is released in LegalThings’s Live Contract demo environment, in which a non-compete clause in an employment agreement can be violated and the various scenarios that come with this violation can be played out. The finite state machine protocol that is used by LiveContracts on the LegalThings One platform is already in use in various sectors, with clients varying from law firms to multinationals and Dutch government.

LegalThings is currently selling tokens for the Tokens-as-a-License (TaaL) solution in their pre-sale, in which over 3 million tokens have already been sold. Companies, governments and private investors have the possibility to store up on tokens for their own use or to later on trade them on cryptocurrency exchanges the same way other tokens such as Bitcoin and Litecoin are currently traded. On the LiveContracts website, the rates for the various services are shown.

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Categories: Blockchain

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