How Boeing, Toyota, Caterpillar, and other OEMs can double their current net profit by using smart contracts to become unmanned “virtual companies”, with or without cryptocurrency: Part 17

What if smart contracts are never recognized as legally binding?

This is hardly a concern. Smart contracts are already being recognized as legally binding, both domestically and abroad. Arizona, Tennessee, Delaware, Vermont, and Nevada all already recognize smart contracts as legally binding: https://www.bakerdonelson.com/blockchain-and-state-law-five-legislative-developments, https://bitcoinist.com/smart-contracts-are-seeping-into-u-s-law-tennessee-passes-bill/. Many more states may soon follow: https://www.enterprisetimes.co.uk/2018/01/15/us-states-move-legalise-blockchain/.

Australia has launched a nationalized platform for smart contracts. The official statement reads:

“The development of this new platform will provide businesses with ‘smart legal contracts’ as a secure, cost-effective means to digitise contracts, exchange data and confirm the authenticity and status of legal contracts”

A 2015 World Economic Forum report on “Deep Shift Technology Tipping Points and Societal Impact” predicted that governments would be using blockchain to collect tax by 2023 (page 26: http://www3.weforum.org/docs/WEF_GAC15_Technological_Tipping_Points_report_2015.pdf).

Finally, Nick Szabo and the Smart Contracts Alliance make the excellent point that clickwrap wasn’t always recognized as legally binding either (page 41: http://digitalchamber.org/assets/smart-contracts-12-use-cases-for-business-and-beyond.pdf). Even though nowadays, everyone just assumes clickwrap is legally binding without thinking twice. The journey to get smart contracts legal recognition will be no different.

Continue to part 18….