Hyperledger Fabric

Smart legal contracts: How the law benefits with blockchain

Share this post:

Since being published, the next generation of the IBM Blockchain Platform has been announced. Therefore, IBM Blockchain Platform Starter Plan will be removed from the IBM Cloud Catalog starting July 5th, 2019 and you will not be able to provision new instances after that. However, existing instances will be supported until June 4, 2020. To continue your blockchain developer journey with the next gen version of the IBM Blockchain Platform, go here.

Blockchain gave rise to the concept of a smart contract; a legal agreement enshrined and automated in computer code. While the automation associated with smart contracts has proceeded, legal standards supporting that automation have lagged behind.

IBM has joined the Accord Project to address this problem head on and foster development of legal standards for smart contracts.

The mission of the Accord Project is to establish open source techno-legal standards to facilitate the widespread adoption of smart legal contracts. The project has developed a blockchain agnostic middleware layer that is interoperable with any distributed ledger, allowing smart legal contracts to operate both on-chain and off-chain. Established last year by legal-tech startup Clause, the Accord Project counts leading international law firms, standards bodies and technology organizations, amongst its collaborators.

Learn more about blockchain today

In addition, any user can now get started using this legal smart contract standard on The Linux Foundation’s Hyperledger Fabric through the IBM Blockchain Platform Starter Plan. IBM and Clause released the first partner developed sample application in the IBM Blockchain Platform sample code catalogue demonstrating these smart contracts in a perishable goods network.

While blockchain has given rise to the concept of automated smart contracts, legal standards have been slow to emerge. Clause’s sample application leverages open source technology including Hyperledger Composer, Hyperledger Fabric and the Accord Project Cicero.

Through the Perishable Goods sample, users are able to transact assets between participants while ensuring they comply with legal smart contracts on the Clause platform off-chain. This keeps the contracts confidential while the transactions are shared on the distributed ledger.

Dan Selman, Clause CTO said, “We are thrilled that IBM is partnering with Clause and joining the Accord Project to support the development of smart legal contracts and Open Source code and standards. IBM’s experience in contributing to building Hyperledger Fabric and operating IBM Blockchain Platform will be invaluable to ensuring that smart legal contracts fulfill their potential to radically improve the efficiency of leading industry consortia and enterprises.”

For example, the Accord Project’s smart legal contract templating system and execution engine contains open source code that enables legal contracts for the supply of perishable goods to automatically detect compliance with temperature and humidity obligations. The partnership will seek to integrate smart perishable goods contracts and similar agreements with the business networks enabled by IBM Blockchain.

Build your skills and deploy game-changing blockchain applications in multiple cloud environments

*Credit goes towards covering the first month’s fees for two peers and one membership fee.

Managing Editor

More Hyperledger Fabric stories

How blockchain delivers security and trust to startups

Anyone who knows the challenges of making a startup succeed knows that just having a great idea — even a potentially world-changing idea — is no guarantee of success. I founded Cognition Foundry in 2015 to help deserving startups bridge the gaps that can hold them back. We look at our mission as encouraging, empowering […]

Continue reading

Blockchain in real estate: How technology is changing the industry

Globally, real estate has recently been valued at over USD 280 trillion — a more valuable asset class than all worldwide stocks, shares and securitized debt combined and represents the largest store of wealth at three and a half times the total global GDP. In the United States, the first record of a home sale […]

Continue reading

Executing on the vision for a true blockchain network of networks

No single company can unlock the potential and full business value of blockchain on its own. Productive ecosystems establish a true platform and drive the value of any real blockchain network. IBM Blockchain ecosystem networks provide organizations that are building on blockchain platforms a range of opportunities to access valuable new channels, strategic partnerships and […]

Continue reading