BNP Paribas Sees Smart-Contracts in the Future of Legal Code
Business accelerators all over the world are always looking for the next big thing in technology and finance. It only makes sense to see these accelerators keeping an eye out for companies exploring blockchain technology. Or in the case of BNP Paribas, they are looking at one startup in particular – called CommonAccord – which aims to bring automated....
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CommonAccord, a blockchain-based startup for legal documentation, is one of eight startups selected for BNP Paribas' new FinTech accelerator, L’Atelier. CommonAccord’s goal is to create global codes for transferring legal documents like contracts, consents and permits. The startup wants to develop a distributed network of participants that synchronizes files with each other, using blockchain, GitHub or email transfer. According to CommonAccord, however, blockchain is particularly important for it’s ability to automate routine functions using smart contracts and provide an immutable ledger....
The complex and fragmented legal arena could use some standardization, at least according to 35-year veteran lawyer, Jim Hazard, the founder of blockchain smart contracts startup, CommonAccord. CommonAccord, which was recently selected by BNP Paribas' new FinTech accelerator, L’Atelier, is developing global text codes for transferring legal documents via distributed ledgers. The idea first came about in the 1990s when Hazard was trying to automate legal processes using Microsoft Word during the development of Linux, one of the most prominent examples of free and open source software....
Over the last year, the concept of a "smart contract" has received renewed attention in legal and business circles. Advancements in blockchain technology have led some to believe that smart contracts could soon offer alternatives to traditional commercial and financial agreements, with dire results for the legal and financial sectors. While this enthusiasm may be premature, the legal profession nonetheless remains mostly unaware of this important emerging technology and the long-term implications for their profession. In this context, "smart contract"....
In a new world of smart contracts, many expect that formal written contracts, and the lawyers that draft them, will be obsolete. It is presumed that the agreed-upon term sheet will be simply given to a software developer to convert into smart contract computer code.That code will be the final agreement. But what does a software developer know about drafting code to implement a traditional term sheet? The negotiating parties know their deal, and the lawyers know the applicable law and the customary terms, but the software developer does not. A traditional term sheet is not enough. A “smart....
How smart is your code? So-called "smart contracts" are science fiction realized. Executable pieces of code stored on a mutual distributed ledger for future execution bind people and payments to actions and outcomes. Computer scientist Nick Szabo has promoted the term since the early 1990s and describes bringing the "highly evolved" practices of contract law to the design of electronic commerce protocols between strangers on the Internet. Interest in the term “smart contract” has risen recently in line with interest in bitcoin and blockchain. Claims have been made that....