IBM’s New Watson Centre Merges Blockchain With AI
Artificial intelligence and #blockchain are coming together at IBM’s newly launched #Watson #Centre in Singapore.
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US Blockchain Businesses Push for Alternative to State-By-State Licensing
Six #blockchain #businesses and advocacy groups have submitted public comments to a report released by a US bank regulator earlier this year.
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Banking Trade Group BAFT Seeks Bigger Role in Blockchain Policy
#BAFT‘s newly launched Innovation Council makes serving its members #blockchain needs a top priority, and that won’t likely change anytime soon.
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Smart Contracts and Smart Lawsuits
We hear a lot about “smart contracts”[1] these days. What about “smart lawsuits”?
Lawsuits are a dispute resolution tool. Over-simplying (a lot): a plaintiff puts their problems into a complaint (sometimes called a petition) and files it with a court. The defendant answers (or doesn’t, and maybe gets defaulted). No dispute? No need for a lawsuit.
How were disputes resolved before lawsuits? Using current lingo, we’d probably call it “peer-to-peer.” You stole my cows? I’m stealing them back. The reader can imagine their own, more colorful, self-help remedies.
Formalized court systems made most modern commerce possible. Whether or not you like them (or think they should last) is a matter of personal preference. Whatever you think, they are also likely to remain in place for some time, process automation brought to you by software notwithstanding.
Lawsuits may have been an improvement but they aren’t always fast or efficient, a common complaint. Proving that one thing is or isn’t true takes time and, often, testimony or documentary evidence. They are also static, not dynamic documents, and changes must be incorporated by written amendment. Nor are they aware or able to respond to or interact with external data. Lawyers are catching up, but we still use tools and #technology with 19th century (and earlier) antecedents.
Take a basic function of a lawsuit, deciding what’s true and what’s not. Who decides that in our current system? First you have to distinguish between law and facts, at least in the U.S. We use a jury system, in which a number of citizens are selected to decide which facts are true and which aren’t. In a non-jury case, the judge will make factual decisions. In all cases, the judge makes legal decisions.
Some lawsuits are dismissed early for a variety of reasons. They may fail to state a claim under any recognized theory of law. It may be true that you can sue someone because you don’t like what they had for breakfast. If that’s all you got, though, your lawsuit will probably be dismissed if the request is made.
If you make it past motions to dismiss you may end up in what’s called discovery (again, I’m referring to the U.S.)[2] Discovery is the phase of a case where the parties get to learn about the other sides’ facts — what do they have that will prove their case? The proof may be in the form of witness testimony or exist in documentary form. Document can be ink and paper or electronic.
Some cases make it to trial. Some don’t. They may settle, they may be dismissed. Some cases are resolved in motion practice. Summary Judgment is an example. It’s a way to resolve a case without a trial where (1) there are no “genuine issues of material fact” and (2) the moving party is entitled to a decision in their favor as a matter of law. (See Rule 56 of the Federal Rules of Civil Procedure for the Federal Court formulation. Many states follow this, though not all. https://www.law.cornell.edu/rules/frcp/rule_56).
How do you get summary judgment in your favor or defend against it and live to make it to trial? You have to be able to get your facts in front of the judge, who will decide the motion. Traditionally, this involved citing deposition testimony and getting witnesses to provide affidavits or declarations, under oath, attesting to facts (either to show a dispute the lack of one), and including documentary evidence (the authenticity of which may need to be established by a person with knowledge). Disputes often turn on things like whether a document was signed, whether or when products were delivered — things that can be proved or disproved with documentary evidence, which may or not be readily available or for which authenticity may be disputed.
The Federal Rules don’t use the word #blockchain in Rule 56, but they do refer to “electronically stored information”, right between “documents” and “affidavits of declarations”.
(1) Supporting Factual Positions. A party asserting that a fact cannot be or is genuinely disputed must support the assertion by:
(A) citing to particular parts of materials in the record, including depositions, documents, electronically stored information, affidavits or declarations, stipulations (including those made for purposes of the motion only), admissions, interrogatory answers, or other materials;
At the risk of stating the obvious, blockchain data = “electronically stored information”. Explaining to a Court what a blockchain or #smart contract are may for educational (if not foundational) purposes still require an explanatory declaration of affidavit. But it’s not hard to foresee a time in the not too distant future where moving papers might point to an address, no affidavit needed.
If a record’s substance and existence can’t be contested, that would do away with a lot of disputes and make summary judgment practice simpler for many. As for broader applications, here’s a nice formulation by Nina Kilbride of Eris Industries:
It may not happen overnight, but this may be how blockchain based smart contracts may start to pave a way to smart lawsuits. The first lawsuit or summary judgment motion that refers to a contract address may have the distinction of being the first (sorta) smart lawsuit.
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* Photo credit: https://pixabay.com/en/bird-cage-hanging-birdcage-vintage-783185/. CC0 public domain.
** Disclaimer: These are my personal opinions only. They may not be shared by and are not sanctioned by clients, past, present or future, or any law firm with which I’m affiliated. And none of this is legal advice. A blog post isn’t a substitute for a lawyer.
[1]. Neither smart, not contracts. You’ll find a recent and very thoughtful discussion of “smart legal contracts” here: http://www.coindesk.com/making-sense-smart-contracts/.
[2]. The world is a big place. The fact that I’m referring to U.S. practice is because I am U.S. trained lawyer.
[linkedinbadge URL=”https://www.linkedin.com/in/stephendpalley” connections=”off” mode=”icon” liname=”Stephen Palley”], the author of this post, is a lawyer focused on Construction, Insurance, and Compliance Driven Software Development. @palleylaw
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4 Notable Fintech Events in Europe this June & July
The 4 #fintech #events in #Europe below that you should not miss will celebrate the innovation and disruption in finance. All areas of financial innovation are showcased and the hottest and most innovative & disruptive startups and companies in the area will present. International and national experts share insights and experiences. Find your next great experience in fintech #this #June & #July
#Blockchain Amsterdam 2016
June 9th, Amsterdam
We’re in the early stages of a mass transformation in industry, the third phase of the information age. The first phase saw the introduction of computers, in the second phase they became interconnected and gave rise to the digital economy. The third phase is now among us. Computers and digital #technology are now ubiquitous, we have more data than we know what to do with and we’re redefining sectors that seemed untouchable for decades.
We are in the age of realignment and that’s where we find Blockchain technology. A distributed ledger, born from clever mathematics and a desire to transact anonymously while maintaining trust on both sides of the exchange. The world is starting to wake up to the vast number applications for such technology. The internet changed the world in 20 years. Blockchain will do it in 10. Welcome to year one. Welcome to Blockchain Amsterdam.
>> Sign up now with code FTSW to get 20% discount!
FinCoder 2016
June 20th, London, UK
The organisers of London Fintech Week bring you the 2nd Annual Fincoder, a conference tailored especially for Fintech technologist, developers and coders. Fintech developers are changing the face of the financial services industry. Hear from some of the brightest developers and technical leads from large financial services firms and fast-growing start-ups. Learn what it takes to work with large financial services firms and what investors look for in emerging financial technology. Discover new opportunities, ways to tackle challenges and the latest trends in financial services technology. From enterprise to start-up and everything in between, 140 attendee will join together at Aviva’s Digital Garage in Hoxton on June 20th 2016. This event is part of London Tech Week.
June 28th, Zurich, Switzerland
Money-Tech features 20 international digital payment and finance technology company pitches and offers 1on1 meetings.
Innovations presented will include digital currencies, mobile banking, peer-to-peer financing (crowdlending, crowdfunding), crypto finance, new trends insurance tech, #robo advisors, among many others.
Speakers will include academics and executives from fintech startups and financial services firm including Roland Berger, Ascribe, the Ethereum Foundation, Nexussquared, Wikifolio, Crowdhouse and more.
>> Sign up now with code fintech16 to get 15% discount!
London Fintech Week 2016
July 15th-22nd, London, UK
Fintech Week is a series of conferences, workshops, hackathons, meetups and parties. Each day we focus on a different topic. We always ensure that there is plenty of time for networking and meeting other innovators. In 2014, we successfully organised London’s first Fintech Week. In 2015 we scaled up and attracted delegates from across the globe, got some of the brightest minds in financial services on our stage and ran a Blockchain Hackathon in Canary Wharf.
The main conference/exhibition takes place at the Grange Tower Bridge Hotel, but other events take place across the City of London, Canary Wharf and “Tech City.” In 2016 we’re going bigger.
Fintech Week 2016 aims to unite the world of Fintech in the world’s financial capital – London of UK. Series of events will help to enhance the dialog between established multi-nationals, innovation firms, disruptive start-ups, governments, media and investors. You will be inspired, learn something, meet new clients, partners, developers, investors and find value for your business.
>> Sign up now with code FTSW to get 15% discount! Limited offer.
The post 4 Notable Fintech Events in Europe this June &038; July appeared first on Fintech Schweiz Digital Finance News – FintechNewsCH.
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Swirlds Launches Hashgraph to Build a Better Blockchain
Many finanical services professionals think #blockchain can be the solution to their problems. A Texas startup thinks blockchain itself is problematic, and launched a service yesterday to improve upon it. Texas-based #Swirlds announced a blockchain alternative called #Hashgraph yesterday, opening it up for public download and use by developers. ToRead More
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Why Russia’s CSD Believes Blockchain is a ‘Blue Ocean’ Opportunity
Russia’s National Settlement Depository discusses why it #believes the biggest #blockchain opportunities have yet to be uncovered.
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Bloomberg Editorial Board: Public and Private Blockchains Need Level Playing Field
The #editorial #board for #Bloomberg News has called for a permissive regulatory environment for #blockchain development.
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UAE Telecom Giant Du Sees ‘Infinite’ Potential for Blockchain
Amid a broader push to investigate #blockchain by the Dubai government, major local #telecom provider Du is refining its strategy toward the #technology.
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Blockchain Technology Will Profoundly Change the Derivatives Industry – NASDAQ.com
As the hype and pessimism around #blockchain #technology converge toward reality over the next several years, one certainty emerging among Wall Street and Main Street traders is that advancements in platform technology will profoundly change how commonly used securities known as derivative contracts will be traded. The distributed ledgers inconceivable just a couple of years ago are on the precipice of ushering in a new era of innovative financial engineering and precision in risk management.
Wall Street firms are beginning to tinker with blockchain and smart contract technology that will allow buyers, sellers and central clearing houses of derivative trades to share information, such as KYC (Know Your Customer), in real time across various distributed ledger platforms unleashing incredible efficiencies.
Last month it was reported that Barclays tested a blockchain platform called Corda, developed by the bank consortium R3. Electronic documents that served as derivative contracts were pre-populated with standardized values, which, one day, will allow the contracts to be hashed out between counterparties, traded on an exchange across multiple #banks and then cleared and settled instantaneously.
Derivative contracts are financial instruments that derive their value from some underlying asset, such as stocks, bonds, commodities or even interest rates. Derivative contracts have become increasingly fundamental in effectively managing financial risk and creating synthetic exposures to asset classes. For example, airlines use future contracts, a form of derivative, to hedge against fluctuating oil prices . Hedge funds use options, another form of #derivatives, to speculate in questionable company stock without baring the cost of purchasing a large number of shares. Derivative contracts typically have shelf lives of 30-day increments.
Industry leaders expect distributed ledger infrastructure to foster new approaches to financial engineering, enabling financiers to customize derivatives consisting of individual cash flows to meet precise needs in terms of timing and credit risk. According to a report produced by Oliver Wyman, a management consulting firm, blockchain-enabled derivative contracts could be financed by issuers selling their own instruments that match the cash flows they expect to achieve, “in essence creating swaps without the need for balance sheet intermediation.” Traditional swap agreements are traded over the counter.
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