Z Machine, SANDIA

When Blockchain Meets

the Physical World

Laurent Hardy

do not

trust

me

do research, learn the technology,
test the product, engage with the community, compare with other projects, read the documentation, look for red flags

blockchain

title, contract, permits

data stream

credentials, authorisations, access

How to establish an external source of information as trustworthy?

you don't!

Digital jurisdiction

The scope of the project is limited to the infrastructure.

No connection to the physical economy.

For a business, no legal liability to other businesses nor to users.

For users, no legal recourse other than those provided by the digital platform.

Other jurisdictions

The scope of the project is global, regardless of the infrastructure, but limited to the jurisdictions the project is active in.

Activities involve actions that are happening outside of the digital sphere.

Business liability and corporate responsibility.

information from oracles

Digital jurisdiction

information from other blockchain(s)

Chain Link

Oraclize

State jurisdictions

information from oracles

information must be legally binding

Origine of Ricardian contracts

Named after David Ricardo (1772–1823)

Originate from early work done by Ian Grigg in the mid-1990s

and developed by Systemics Inc.

 

“An agreement in the form of a single document that is presented by an issuer to an owner of property, where the ownership right of the owner is managed by the issuer of the document. The document must be clearly legible, just like traditional contracts on paper. In addition, the agreement must be legible by programs and software and be digitally signed, using digital keys and server information, in combination with a unique and secure identification method “.

Contract

includes all the rules and conditions that are part of the agreement

H[Contract]

Sig[Contract]

Issuer sk

the private key of the issuer of the contract

Hash

a hash of the contract allow to have a unique digital representation

Digital Signitaure

the private key of the issuer of the contract

Issuer

legal authority that manages the ownership rights of the owner

Offer

the signature attached to the contract makes it  a legally binding and legible offer

Owner

the owner get his ownership recognised

Interact

the parties can feely interact with each other and with the contract

Resolve Dispute

in case of a problem between the parties, there exists a process to resolve the dispute

Make it better

Use arbitration instead of legacy courts

Make both parties agree to the terms

Use smart code or prose to resolve disputes

Incorporate both world: {prose, code, params}

 

What is needed

An arbitration association to resolve disputes

A set of legal and smart contracts to enable the transfer of ownership

solution?

example

what happens when the institution which issues loans default

The Internet of Agreements

"We will have met our challenge when we can rent our next car, buy our next house, sell our next startup on the blockchain." (Mattereum)

Mattereum

We are establishing a decentralised commercial arbitration court which can recognize and understand smart contracts.

This means that the legal obligation to transfer value based on the correct execution of a smart contract can be enforced all over the world.

Specifically, this court is recognized as an arbitration court under the 1958 New York Convention, and can therefore make legally binding awards that will be enforced by national courts in nearly all of the countries in the world.

This finally removes the ambiguity about whether or not smart contracts are legally enforceable, and whether fiat property can be handled using blockchains.

source: Kleros website

The Justice Protocol

A decentralized autonomous organisation that delivers fast, affordable and transparent justice for all

Feedback is welcome.

Thanks.

When Blockchain Meets the Physical World

By Laurent Hardy

When Blockchain Meets the Physical World

Conducting business on the blockchain is easy and straightforward as long as there are no dispute between the parties, no ambiguity in the terms of the agreements and no responsibility involved in the process. In the physical world we live in today, these situations occur a lot. If the blockchain infrastructure evolved and was able to resolve disputes in a decentralised fashion, this could have the potential to bring blockchain to a whole new level.

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