Legal Geek Conference18 October 2016

1 © Distlytics Ltd 2016

How industry and the Legal Profession use Blockchain

Gary NuttallManaging Director

They don’t

How industry and the Legal Profession use Blockchain

…Yet!They don’t

How industry and the Legal Profession use Blockchain

The EndHow industry and the Legal Profession use Blockchain

Agenda

1. Introductions2. General Use Cases3. Opportunities (& Threats)4. Q & A

Agenda

1. Introductions2. General Use Cases3. Opportunities (& Threats)4. Q & A

1 - Introduction: Me

This presentation reflects my personal views and is not intended to reflect the views of past, current and prospective employers, clients or other agents.

"Prediction is very difficult, especially if it's about the future."

Nils Bohr, Nobel laureate in Physics

Caveat: Please read the small print…

1 - Introduction: You

Blockchain knowledge?

Immutable – complete, timestamped, audit trailCyber resilient – still functional if nodes removedReconciliation significantly reducedCyber protected – can’t be easily hacked or ransomedSmart Contracts can be created

1 - Introduction: Blockchain

Agenda

1. Introductions2. General Use Cases3. Opportunities (& Threats)4. Q & A

2 – General Use Cases - ExamplesEmerging themes ExampleFinancial Transactions Bitcoin, BTCAsset Register Honduran Land

RegisterProvenance Everledger,

Provenance.orgIdentity Management Estonia eRegisterPublic Services UK BenefitsSmart Contracts TheDAOVoting System Follow My VoteDecentralized Markets Open Bazaar, slock.it

2 – General Use Cases - Examples

2 – General Use Cases - Examples

A few more….

2 – General Use Cases - Sectors

2 – General Use Cases - Sectors

2 – General Use Cases - Startups

2 – General Use Cases - Background

Agenda

1. Introductions2. General Use Cases3. Opportunities (& Threats)4. Q & A

Value transfer• Payments & Settlements

Asset Management• Land Registry• Diamonds

Removal of Trusted Third Party• Conveyancing• Banking (payments)• Escrow

Accreditation• KYC• AML• Professional Membership

Document Management• Contracts• Policies• Electronic Signatures

Government Services• UK GDS• Local Government

Media• Music• Digital Images

Supply Chain• Ethical Sourcing• Consignment Tracking

3 – Opportunities (& threats)

OUT

The removal of Trusted Third Parties:• Conveyancing• Banking• Escrow

Trusted Registers:• Land registry• Asset ownership• Title Deeds

Value Transfer:• Payments• Foreign Exchange• Trade Finance

IN

• New technology expertise needed

• “Legal programmers”

• Advisory – Patents/IP/Copyright

• New insurance products

• Challenger Banks

• Decentralised Autonomous Organisations

• Government Services

• Digital Copyright

3 – Opportunities (& threats)

By this contract, {Payer} agrees to make payments to {Payee}, hereafter known as "Lender," by the following schedule in exchange for {Product/services rendered}. This payment schedule is enforceable by law, and the methods described below will be use in cases of delinquent payment.

By this agreement, it is agreed that a payment of {amount} will be surrendered to the Lender every {interval} until the total of the payment required, which is {amount}, has been delivered. The payment plan will take the following form:•{First Payment Date, Amount}•{Second Payment Date, Amount}

These payments include any interest and other charges that may apply.This agreement is binding, and failure to meet its terms will allow the Lender to take certain recourse. First, late payments will incur a fee of {fee} every {interval}. Insufficient payment and bounced checks will incur a fee of {fee}. If payment should not be delivered at all, Lender will be entitled to {describe how Lender will act, such as contacting a debt collection service}.

In addition, the following terms and conditions apply: {list terms and conditions}.

By signing this agreement, all parties agree to the terms as described above. Alterations to this agreement can only be made by both parties and must be placed in writing. Both parties will receive a printed copy of this agreement, and will be responsible for upholding its terms.

3 – Opportunities “Smart” “Contracts”

pragma solidity ^0.4.0;contract Purchase { uint public value; address public seller; address public buyer; enum State { Created, Locked, Inactive } State public state; function Purchase() payable { seller = msg.sender; value = msg.value / 2; if (2 * value != msg.value) throw; } modifier require(bool _condition) { if (!_condition) throw; _; } modifier onlyBuyer() { if (msg.sender != buyer) throw; _; } modifier onlySeller() { if (msg.sender != seller) throw; _; } modifier inState(State _state) { if (state != _state) throw; _; } event aborted(); event purchaseConfirmed(); event itemReceived();

function abort() onlySeller inState(State.Created) { aborted(); state = State.Inactive; if (!seller.send(this.balance)) throw; }  function confirmPurchase() inState(State.Created) require(msg.value == 2 * value) payable { purchaseConfirmed(); buyer = msg.sender; state = State.Locked; }  function confirmReceived()onlyBuyer inState(State.Locked) { itemReceived(); state = State.Inactive; if (!buyer.send(value) || !seller.send(this.balance)) throw; }}

3 – Opportunities “Smart” “Contracts”

3 - Opportunities (& Threats)

Thoughts…

Protocol Commonly used for

Enables

TCP/IP (1980’s) Internet Data sharingHTTP (1990’s) World Wide Web Displaying

information

Blockchain (2008)

Distributed Ledger

Transfer of value

About the future

Quote from Mayor of Cambridge, MA after having the telephone demonstrated in 1876:

I can see the time that every City will have one!

"This 'telephone' has too many shortcomings to be seriously considered as a means of communication. The device is inherently of no value to us.“

Western Union telegraph company memo, 1877

Caveat Emptor?

Agenda

1. Introductions2. General Use Cases3. Opportunities (& Threats)4. Q & A

Q & A

29 © Distlytics Ltd 2016

Thank you!

Gary Nuttall contact details:eMail: gnuttall@distlytics.com

Twitter: @GPN01

LinkedIn:uk.linkedin.com/in/garynuttallWeb: www.Distlytics.com

www.linkedin.com/in/garynuttallwww.linkedin.com/in/garynuttall

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