Education Is the Only Way to Utilize Blockchain Technology
An invention that was developed to assist crypto coins in a predefined framework has now turned up as the leading technology the world cares about. In its existence of nearly a decade blockchain has seen tremendous advancement in the last two years. Currently, there are numerous blockchains used in both public and private sector. It has not only given the power to make transactions more efficient but also has also helped in the establishment of completely new markets.
With upcoming enterprise level projects, one would wonder about the time when it will be employed in every sector of the economy. But, the adoption of the technology is far less superior to the role of gatekeepers, i.e., lawyers.
The moment attorneys understand the ins and outs of the technology we will witness its complete expansion. They are in an important position as they will be preparing their clients to experience a complete transformation of their business framework.
Vice Chancellor of Delaware’s famed Court of Chancery, Travis Laster, stated that blockchain technology is the only rescuer of the clogged US securities market as it will remove financial intermediaries. The statement was part of his 2016 speech to the Council of Institutional Investors named “The Blockchain Plunger: Using Technology to Clean Up Proxy Plumbing and Take Back the Vote.”
At that time the state launched Delaware Blockchain Initiative and became the first jurisdiction to adopt the innovation. In 2017 it made changes to the law, so businesses could maintain their stock ledger and other corporate records on the blockchain.
Doneene Keemer Damon, Vice President of the prominent Delaware law firm, that the breakthrough technology was apt for streamlining issuance and supervision of asset-backed securities. Thus, any receivable fund, student, or car loan, that creates income could be scrutinized. Parties involved in the smart contract would have the option to monitor loan performance in real time and would be warned by the same contract about a non-performing loan.
Aaron Wright, Professor, and author claimed that in future blockchain will be used to manage shares, provide title to real property and intellectual property. It will become the most trusted source to know about the belongings of any person and the owner of any asset. Smart contracts will be used to transfer and control rights while making the transaction technically hackproof.
Lewis Cohen, a lawyer with DLxLaw LLP, gave a slightly different definition to the blockchain. In his view, it is an “a toolkit that allows businesses to re-examine their business models.” It allows the management to review their thoughts about business operations, customers, stakeholders, and sources of raising capital. He added that people have been eager to exchange fiat currencies against tokens in the last 18 months. They hope that someday token’s value will increase, and they will profit.
The event can be summarized as a boost for the technology which gained immense praise and a guiding light for its future prospects. As SEC is not totally against blockchain, we will probably be experiencing an extended embracing phase as soon as the authority comes up with some regulatory policies.