Italian Parliament recognises blockchain and smart contracts, and now?

The Article 8ter of this new-born law gives a definition of blockchain and smart contract: “Technologies based on distributed ledgers are technologies and protocols using a shared, distributed, replicable ledger accessible simultaneously, architecturally decentralised on cryptographic basis, allowing registration, validation, updating and storage of non-cryptographic data and non-cryptographic data and not, that can be verified by each participant, but that can’t be modified or edited. “Smart Contract” is a programme for programmers that operates on technologies based on distributed ledgers and whose execution automatically binds two or more parties according to predefined terms. The smart contract satisfies the requirement of being in writing if the parties are electronically identified according to the requirements that will be established by the Agency for Digital Italy. The guidelines shall be adopted by mid-May 2019. Those smart contracts that meet the requirements that will be established by the Agency for Digital Italy will be considered as being in writing and this may contribute to the validity of the agreement itself”.

But briefly, what is it blockchain and how it can change our professions?

Blockchain is a decentralised database that keeps track of an unlimited number of data assets and transactions through a peer-to-peer network; a registry maintained by a consensus algorithm and stored in a network of computers. That allows data to be included in “blocks” that are chained one to another. Blockchain’s advantages are without doubt: a) transparent processes, b) disintermediation, c) security, d) cost reductions and e) trust, because each transaction is verified by a wider number of nodes.

At the beginning, blockchain was famous for cryptocurrencies but nowadays its applications are innumerable i.e. for financial services, insurance sectors, in the enhancement of e-government services but also increased transparency and reduced administrative burdens, better customs collection and better access to public information as well as automatic execution of contracts.

It is an undiscussed fact that today there is a huge buzz about this topic and great expectations in boosting the economics. And be assured that this new technology will deliver its effects also in litigation fields, in court; just to give an example, think about evidences verified by blockchain.

Yes, there will be a revolution also in our courts, the question is: are we ready for this?