How can a Blockchain system change the commercial contract process in your opinion? What are the opportunities and challenges?
Smart contracts certainly provide a quasi-real time audible record of information that is simultaneously updated and distributed among participants. Businesses using and trusting records that are stored on shared ledgers must consider the legal basis for these records. Users of these records will need to be assured of their reliability as an authoritative source of the underlying obligations and the enforceability of those obligations.
Shared ledgers should be designed to provide these assurances under existing laws or, alternatively, statutes, and rules may need to be adjusted for enabled record keeping.
The use of blockchain technologies may substantially change the way the finance industry will operate and create a major challenge for traditional banks and systems of payments. Luxembourg has created the Luxembourg House of FinTech (LHoFT) to attract start-ups and assist them in their development and partnering with traditional banking institutions.