Australian Businesses Will Now Use IBM-Powered Smart Legal Contracts
IBM has had a few experiences in handling blockchain-based projects in Australia. This time, it is partnering with a law firm, Herbert Smith Freehills, to create a blockchain solution that will bring Australian businesses on-board with smart contracts. The platform is called Australian National Blockchain (ANB), which will fuel the nation’s digital economy by allowing companies to use digitized contracts, to exchange data and to verify the status and genuineness of legal contracts.
Digital Contract Management
Legal contracts are often a headache for companies collaborating from afar. Data exchange and confirming the authenticity of these contracts are some issues that have plagued organizations for long. ANB seeks to solve these problems.
Once the ANB platform goes live, it will enable organizations to manage the lifecycle of a contract from its negotiation to its signing and will continue over the terms of the contract. It will do this with transparency and “permission-based access among parties to the network.” It will also enable the companies to use distributed-ledger-based smart contracts “to trigger business processes and events.”
ANB works through smart legal contracts (SLC) that have self-executing smart clauses that will be triggered as soon as certain contract conditions are met. These clauses come with the ability to record external data, including those collected from Internet of Things devices.
Here’s an example of how the technology works:
“[Co]nstruction site sensors could record the time and date of a delivery of a load on the blockchain and trigger a smart contract between the construction company and the bank that would automatically notify the bank that terms have been met to provide payment on that load delivery.”
Where Will Australia Go With ANB?
ANB will be the first large-scale public blockchain solution that will be available to all businesses in Australia. This localized blockchain has been designed to fit in with the legal requirements of the country.
Herbert Smith Freehill’s blockchain and smart legal contract lead Natasha Blycha details the positive impact of this solution:
“Technologies like blockchain are set to transform the legal industry and the wider business landscape as we know it. This presents a huge opportunity for agile and forward-thinking firms and has potential to deliver significant benefits to our clients and the business community as a whole. Our clients are enthusiastic about process automation, and how it can support a move away from paper-based systems, simplify supply chains and quickly and securely share information with customers and regulators”
The consortium collaborating on this blockchain includes IBM, Herbert Smith Freehills, and Data61. IBM will test this project on IBM blockchain first.
Australian Businesses Will Now Use IBM-Powered Smart Legal Contracts was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.