A new Blockchain era
The importance of this technology is being compared to that of the development of the Internet. Currently, the best known aspects of blockchain technology are cryptocurrencies and cryptocurrency trading. The importance of this technology however goes beyond cryptocurrencies as it offers opportunities for the development of smart contracts and other applications (which are not necessarily linked to cryptocurrencies).
Smart contracts are written in a programming language and are automatically executed when certain conditions apply. For example, the French insurance company AXA has developed an application that contains a smart contract that, in the event that an airplane is delayed by more than two hours, automatically lodges compensation to the insured person’s bank account because of the flight delay.
This however is just the tip of the iceberg! Currently examples of applications that use blockchain technology are few and far between, since the development of the application and use of the technology is still in its infancy. The advantage of blockchain is, on the one hand, that it allows for decentralised storage of data, the content of which is accessible simultaneously to all users, and that it enables significantly faster and cheaper transactions than we know today. On the other hand, the key advantage of blockchain technology is that the data written in the blocks cannot be altered retroactively.
Technological issues aside, the development of blockchain technology also raises numerous legal issues. Since blockchain technology is currently primarily used for dispersed data storage, the issue of protecting personal data is of the utmost importance, especially in light of planned new legislation, which will impose significantly higher fines than before. It is expected that, with the use of technology for the development of smart contracts and other legal transactions, more legal issues will arise on account of the fact that the contracts will be executed automatically and that they will be concluded through a chain of data blocks. The following legal issues would thus need to be addressed: how to determine the legal and business will of the contracting parties, diligence in the conclusion of a contract and related issue of error in will, how could the courts interfere with the contracts any many more.
Despite the current enthusiasm for mass implementation of blockchain technology, we strongly advise to carefully examine all possible legal issues before using and applying blockchain technology and thus eliminate the risk of potential legal conflicts and violations of applicable legislation. The challenge ahead is one to be addressed by the legal eagles, since it is highly unlikely that this technology or its application will simply fade away.
