The world has evolved a lot with technology taking over. Why then should lawyers be involved in smart contracts deals when it’s digitalized?
This is the question that has been lingering in the minds of youths ever since its emergence. Before going into whether or not they should be involved, let’s take a look at what smart contracts are all about.
What are Smart Contracts?
Smart contracts are simply programs stored on a blockchain that run when predetermined conditions are met. They are used to automate the execution of an agreement so that all participants can be immediately certain of the outcome without third’s party involvement. They are also used to automate a workflow, triggering the next action when conditions are met.
How Smart Contract Works on Blockchain
For the smart contracts, the following simple statements like, “if/when…then….” are written into code on a blockchain. A network of computers executives the actions when predetermined conditions have been met and verified.
Smart Contracts’ actions can include releasing funds to the appropriate parties, registering a vehicle, sending notifications, or issuing a ticket. This means the transaction cannot be changed, and only parties who have been granted permission can view the results.
Read Also: Lagos Blockchain & FutureTech Conference: Highlights
Should Lawyers be Involved in Smart Contracts on Blockchain
Why should legal practitioners be involved in a digitized contract since the code inscribed can detect errors?
Speaking at the just concluded Lagos Blockchain and FutureTech Conference 2022, Principal/Head at Satoshi BBO Solicitors Ogunsakin Buki said,
Smart contracts involve AI and will need human assistance if any goes wrong. Speaking further, she stated that legal issues may arise and the need for a legal practitioner on the ground to help sort out issues and also give options that will be beneficial to all.
Arguing based on a digitized contract does not need the interference of any human being an attendee. he argued said lawyers have always wanted to be involved to extort people of their money. Many also felt the same.
Putting herself in defense, Buki said although AI is a technology that does not need human interference, it cannot always be perfect. This is why it needs the involvement of humans should in case things goes wrong.
Buki who is in the system for over ten years also gave the difference between legal contracts and smart contracts. To her smart contracts are digitized, while legal contracts involve a lot more procedures.
Final Notes
We however think that for a system to be pushed out to consumers, all major flaws need to be considered. You cannot call it smart contracts and humans are still involved in its day-to-day activities. Then it’s not smart enough.
It is a technology and needs to be perfect. It needs to be able to perform beyond human abilities. That is what “SMART” entails.
Do you think lawyers should be involved in smart contracts on the blockchain? Let’s know in the comment section.
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