Supreme Court of China has ruled that blockchain can authenticate electronic data entered in as evidence and is binding in legal disputes, according to an official statement released on September 7.
The new ruling comes as part of a series of more broad and comprehensive rules on the trial of internet court cases across China and comes into force immediately.
According to the announcement on Friday, the Supreme Court declared that:
“Internet courts will recognize digital data that is submitted as evidence if relevant parties collected and stored these data via blockchain with digital signatures, dependable timestamps and hash value verification or via a digital deposition platform, and can demonstrate the originality of such technology used.”
This new pronouncement by China’s Supreme Court concurs with the precedence set by Hangzhou Internet Court earlier in the year. In a case between a media company and a technology company, Hangzhou Internet Court pronounced that decentralized technology can be used as a potential way of determining the genuineness of the digital information presented as proof.
Internet Court was established due to the increasing number of online trade conflicts and copyright infringements in the country. The Hangzhou Internet Court is the first, and it was established in August 2017.
According to reports, blockchain-related innovations are not only being legally acknowledged as qualified and capable of authenticating evidence, but even the smart contracts are being considered to have the potential of becoming a considerable disruptive and groundbreaking force in the legal domain. The immutable, time-stamped data generated on the blockchain provides an auditable trail with which smart contracts interact according to pre-specified, binding rules.
In spite of the continuous crackdown on virtual currencies in the country, the Chinese Government is eagerly embracing blockchain technology. On one hand, the government banned ICOs and domestic virtual currency, exchanges, and trading and restricted cryptocurrency-related online content. On the other hand, it is also adopting DLT in trade and various other sectors.
Private Corporations in the country are also adopting the blockchain technology and driving decentralized technology-related innovation on a global scale. Chinese company’s like Alibaba and Tencent are leading the blockchain patent race on a global level. Around 56% percent of all issued distributed technology-related patents in the world belong to Chinese companies. Even the country’s Central Bank is also not left out, issuing 68 filings for DLT patents.