London Law Firm Digitizes Contracts Using Bitcoin

A London law firm has announced plans to use blockchain technology to digitize legal agreements.

Earlier this year, a Texas startup called Selachii was founded and partnered with Stash to convert its paper documents into self-executing “ auto-contracts ” on the Bitcoin blockchain .

Selachii partner Richard Howlett told CoinDesk that his company has been working on various blockchain solutions since 2013, starting with contracts such as wills, title registries and shareholder agreements. He said :

“ We envision smart contracts to revolutionize litigation around the world. This is the beginning of disrupting contract implementation and enforcement. Ultimately, this technology will be able to transform any technology into a smart contract. ”

Currently, Selachii and Stash are still in the testing phase, but the company expects to launch the product to UK customers by the end of 2015 and internationally in 2016 .

In terms of clients, Howlett said he is currently in discussions with a European bank looking to use smart contracts for commercial transactions.

Ultimately, Howlett sees Selachii Smart Contracts extending beyond the firm’s clients, as a white label service for other businesses and individuals to use. “ Our goal is to establish ourselves as a top brand in this new and growing area of ​​law, ” he added.

Stash

First announced six weeks ago, Stash is an off-blockchain system using an open platform, developed by co-founder Chris Odom in 2010 , that is claimed to be faster and cheaper than using Bitcoin alone.

Once signed, each Stash contract is verified by a “ multi-signature voting pool ” in such a way that only the user can access their funds.

" This means that the servers running our software never receive user funds, never transmit user funds, and do not have access to user funds," the company's website states. "Similarly, the servers do not have the authority to change user balances, reverse transactions, or confiscate user funds. "

Co-founder Cliff Baltzley said Stash will charge users a fee on a “ per contract execution basis , ” with prices set to drop once its template contracts are in place.

He added that while Selachii is its first client, other bitcoin startups and law firms have expressed interest.

Smart Contracts

Smart contract is a term originally coined by cryptographer Nick Szabo . The code is encrypted and protected, and the simplest one is to stipulate "if this, then that" .

How are these types of contracts viewed in the eyes of the law? Howlett says they are perfectly legal, and they have many game-changing benefits: speed, ease of use, and permanence. Plus, they can never be lost:

“ Any important document can be put on the blockchain and will always be available to the person who deposited it. For users of contracts, this will help reduce litigation costs and may also lead to automated legal services to a certain extent. ”

IBM and BBVA are currently exploring the use of smart contracts in business settings, some of which are seen as a path to decentralized autonomous organizations ( DAOs ).

While startups like Stash are connecting their platforms to the Bitcoin blockchain, projects like Eris and Ethereum are designing alternative blockchain platforms with built-in smart contract functionality.