Smart Contracts and the Law

Smart Contracts Are On the Rise, Just What Impact Will They Have?

Without even thinking about it, most of us enter into a contractual relationship every single day. We sign legal documents without reading them and ignore the fine print that could prove essential when things go awry.

But with the advent of smart contracts, how will things change? Will lawyers embrace the idea of an automated, irreversible process? What impact will smart contracts have on the future, and will clients be willing and able to use the technology?

Smart Contracts and Blockchain Technology

Smart contracts are already here and being used. As discussed by The Legal Examiner, a smart contract is a “preprogrammed contract that automatically executes if certain predefined conditions are (or are not) met.” Smart contracts run on a blockchain platform.

As we previously discussed, blockchain technology is a digital, immutable ledger. It is the technology behind cryptocurrency and has been celebrated for its transparency. Once a transaction is entered on a blockchain platform, it cannot be altered.

Blockchain technology is what makes the idea of smart contracts appetizing to many technology enthusiasts.

Benefits of Smart Contracts

Smart contracts offer a number of benefits to users. They automate processes that tend to be very labor-intensive. They also take away some of the potential for human error. Contracts can also be very vague, which makes it easier to argue one side or the other.

Smart contracts offer lawyers and clients several benefits, including:

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·????????Unalterable once executed

Smart contracts remove most of the ambiguities usually present in contracts. Contracts can be inherently biased depending on who wrote them. Smart contracts eliminate many of the biases and offer increased transparency. They only perform the transaction if the set condition is met.

Will Lawyers Embrace Smart Contracts?

Contrary to what some people may think, smart contracts are not going to replace lawyers. A handful of attorneys may initially resist the new technology hoping to carry on the way they have done things for decades. For most attorneys, however, smart contracts have a lot to offer. It is more likely that law firms will embrace the technology, utilizing all it has to offer.

The pandemic forced many lawyers out of their comfort zone. An industry historically based in brick and mortar went virtual almost overnight. Clients were retained without ever meeting the attorney in person. Trials were conducted via zoom. To think that lawyers will not use this technology is significantly underestimating them.

Where go the clients, so go the lawyers. A new client base is coming of age, with wallets lined with cryptocurrency, born during the digital revolution. They understand blockchain technology and are unafraid to conduct business in a matter of seconds. Lawyers will cater to these clients without question. Smart contracts will not only be a part of the conversation; they will be integrated into everyday transactions.

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Contact Amicus Capital Group to learn more about how we can help you grow your firm, embrace new technology, and cater to a new clientele. Call (877) 926-4287 to get started.

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