Video 1: How Finite State Machine helps avoiding bugs and stupid mistakes

Hello there! Today we briefly touch upon Finite State Machine and how this model provides you with a better insight in, and understanding of, live contracts on the LegalThings One blockchain.

Moving from one state to another in a secure way

Finite State Machine is a mathematical model of computing, which can best be explained by software architect and developer guru Arnold Daniels. He is co-founder of LegalThings, an Amsterdam-based tech startup specialized in automating documents and data-intensive processes through blockchain technology. In the video below Arnold discusses how Finite State Machine works and how it helps securing your work processes, ushering in transparency for the smooth operation of the organization.


‘One of the things live contracts do, is that they define the logic as a finite state machine’, Arnold says. ‘Finite state machine is a little different than code. It is simple logic that work flows can be automated on.’ By using a door as an example, Arnold explains how this model works in practice. If the door is closed, you can choose to open it. When the door is open, you can either close it or walk through. Once the door is closed, you no longer have the option to walk on. ‘The actions that you can take are defined by the state that you are in.’


According to Arnold, Finite State Machines are a suitable alternative for writing code to define procedures. One advantage is that Finite State Machines can be visualized as graphs, allowing non-developers to understand the procedure. Another advantage is the robustness. ‘It is, for example, used by NASA to launch rockets, simply because there are only so many stages the system can be in, and so many actions you can take. The risk of bugs or other problems arising are very small’, he says. ‘That’s why we use Finite State Machines for live contracts at LegalThings One .’

With Live Contracts you can digitize business processes and automate contracts. Want to learn more about LegalThings One? Visit the website, or send an email to

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