Digital Currency - Smart Contracts
The digital currency specialists at Selachii are at the forefront of Smart Contracts, with plans to launch digitalised legal agreements using blockchain technology in 2016. Smart contracts are, essentially, self-executing digital contracts with the contract clauses drafted in computer interpretable language (instead of human language in paper form). Under a smart contract, no money would be paid unless specific agreements are met and verified by software.
The team at Selachii is widely recognised as highly experienced in Bitcoin and blockchain environments. We regularly advise businesses both domestic and internationally on the issues.
The benefits of smart contracts are tangible: they are easily and quickly created, easily accessible and immutable. Notably, they cannot be lost because they are placed on a blockchain; and because they are easy to create, they will be cheaper – bringing down the cost of associate fees. A big advantage is that the risk of a traditional contract dispute arising between the parties is reduced. Smart Contracts can also reduce the risk of fraud and corruption.
Smart contracts are cryptographically secure, self-enforcing digital instruments that can automate agreements between the parties. They are carefully designed and tested before being used in real-world applications.
They are particularly suited to the business context: anything that drives down costs and raises efficiencies is universally welcome. And by their very nature, they are frequently linked into the Bitcoin blockchain. The automatic releasing of funds to a Bitcoin address would also further increase efficiencies of both time and costs, driving up efficiencies for the business concerned.
If you want to reduce the risks inherent in forming a business relationship in the traditional manner, and you would like more control over your commercial contracts, smart contracts may be well-suited to your businesses. Contact us for further information and in-depth advice.
Smart contracts are legally binding contracts, although their overall legal status is not absolutely clear. For instance, where a term is disputed – how will the law decide a smart contract is or is not binding? This lack of clarity means there are new legal challenges ahead in this brave new world of smart contracts - not to mention the potentially tricky regulatory issues. For this reason, a clear working legal definition would be useful.
Until then, we are able to advise businesses and entrepreneurs on their existing and proposed use of smart contracts, and the risks and legal implications of using them.
Our digital currency solicitors work in partnership with our commercial and dispute resolution teams so that we give our business clients a well-rounded service with the best possible advice covering the issues that matter.
How Selachii Can Help
Selachii is a dynamic litigation law firm based in Kensington, London. Our digital currency team is highly experienced in Bitcoin and Smart Contracts. We put the best interests of our clients at the heart of everything we do. We work with both businesses and private individuals, giving them legal advice and support which is unique to them and their situation.
We don’t believe in simply handing out one-size-fits-all solutions to problems. We will focus on your specific circumstances before working out the best and most cost-effective way of helping you achieve your aims.