Smart Contracts are computer code programmed to execute transactions based on pre-defined conditions. These can be simple, automated bill pay arrangements, for example. They are particularly innovative, however, when used in conjunction with blockchain technology. The Chamber of Digital Commerce promotes the use of smart contracts in conjunction with blockchain technology.
Further, the Chamber believes that existing U.S. law, without further revision, supports the formation and enforceability of smart contracts under state law. The Electronic Signatures in Global and National Commerce Act (“ESIGN Act”) and the Uniform Electronic Transaction Act (“UETA”) provide sufficient legal basis for smart contracts executing terms of a legal contract. Additional state legislation, inconsistently drafted, will confuse the marketplace and potentially hinder innovation.
October 24, 2016