Blockchain: Smart Contracts

Assets and contracts created with Blockchain and similar technologies are valid under existing English law, according to the findings of a top group of experts in the UK jurisdiction taskforce of the LawTech Delivery Panel which is chaired by a senior member of the judiciary. The group recently published a 46-page legal statement published by the concluded that:

Cryptoassets, including but not restricted to, virtual currencies, can be treated in principle as property; and that

Smart contracts are capable of satisfying the requirements of contracts in English law and are thus enforceable by the courts. Statutory requirements for a signature can be met by techniques such as private key encryption.

“The worldwide smart contract market is expected to reach $300m by 2023 and the World Economic Forum predicts 10% of global GDP will be stored on the blockchain by 2027. It is great to see the adaptability of our common law system to fast-changing technology, demonstrated in this landmark legal statement from the UKJT.” Jenifer Swallow, director, Lawtech Delivery Panel.