The emergence of blockchain and cryptocurrency has created the groundwork for various applications and uses. Although Bitcoin and non-fungible tokens (NFTs) have gained significant attention, they don’t encompass the possible ways technology can and will be incorporated into our everyday lives. If you are old enough to remember life before computers (when everyone was hoarding compact discs with AOL minutes on them), think about how many forms required you to write your social security number. Where are those documents now?
Blockchain is the powerhouse that makes exchanging cryptocurrency possible. Still, it could just as easily be used to create a ledger that stores your personal information, such as your social security number. In November 2018, Marriott Hotels announced that their systems had been compromised. Hackers could have accessed 500 million people’s names and passport numbers. Despite this, people continue to use Marriott’s hotels and still make reservations using their credit card numbers. Why? Because consumers trust Marriott’s current system. Perhaps the biggest hurdle blockchain has to overcome is gaining consumers’ confidence. It isn’t a fringe form of technology that solely enables people to trade cartoons—but it can do that too.
Practical, Everyday Uses for Blockchain
Virtually every adult has to sign and follow contractual agreements. Contracts are part of your life even if you never own a business or work alongside a third-party vendor. A contract governs you if you have a cell phone plan or borrowed money to pay for a home.
Because we are a firm that works with businesses, we will use the example of an entrepreneur who has a contract with a third-party vendor to explain the applicability of smart contracts. The contract states that the third-party vendor drops off raw materials on the first of the month because the business owner needs them to build chairs. What happens when the raw materials are not delivered because both parties interpret the contract differently? Ultimately, an outside party, such as a judge, will resolve the dispute based on the contract.
A smart contract could hypothetically remove the intermediary. The smart contract uses code to outline the terms of the agreement between two or more parties. It is also self-executing, which means it becomes effective without any other additional action. Imagine the chair manufacturer used a smart contract with their vendor. When the terms and conditions of the agreement are not met prompts a form of recourse. The nature of which will have been agreed to when the contract was executed.
Work Alongside the Trusted Attorneys at Quantum Lex
The potential for blockchain is endless. This extends to everything from secure, online platforms for voting in elections to recording deeds for real estate transactions in real-time. At Quantum Lex, we embrace the integration of blockchain and other technologies in business. Contact our offices today for all legal matters related to blockchain, cryptocurrency, business law, and business litigation.
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