The UK Law Commission of the British Parliament is launching a research project to explore some of the positive effects that blockchain-based smart contracts can have on the UK legal structure for transparency and clarity. Through the report released on July 19, the Law Commission announced that smart contracts can enhance trust and transaction transparency in the enterprise, and the legal system should try to use smart contract technology to remain attractive to enterprises in this transition phase.
The Law Commission, comprised of Commission staff, Chief Executive, and Commissioners, want to reform the laws in the interest of the country by this course of action. By reviewing the legal structures, this act aims to ensure British courts remain an aggressive choice for corporations to practice smart contracts efficiently.
The document said, “It is important to ensure that English courts and law remain a competitive choice for business. Therefore, there is a compelling case for a Law Commission scoping study to review the current English legal framework as it applies to smart contracts.”
The Commission further stated that this project is to make sure that the law is certain as well as flexible enough to apply to a global and digital context, as well as highlight any issues that may lack clarity or certainty. The Commission believes that smart contracts have the ability to increase certainty as well as trust, and heighten transaction efficiencies within and among businesses.
Earlier this month through the report conducted by the Big Innovation Centre, DAG Global, and Deep Knowledge Analytics, Sean Kiernan, the chief executive of DAG Global, predicts that the gap between Britain’s traditional and crypto economies will diminish and eventually disappear within the next few years, added:
“The UK is a major global financial hub and in recent years has become a fintech leader as well. At the same time, it is starting to demonstrate significant potential to become a leader in blockchain technologies and the crypto economy.”
Matt Hancock, MP, Conservative and Unionist Party, has anticipated the “monumental and transverse impact” blockchain will have on the broad areas of public life including the legal system.
No doubt blockchain is changing our financial and digital landscape too. It will revolutionize the way of business transactions and the consumer’s interaction with each other. It has an immeasurable potential of changing the traditional systems and the services associated with them which will be provided across all industries, globally. Prepare for disruption, or prepare to disrupt.