Smart Contract Dispute Resolution blockchain, law, blockchainlaw? - PowerPoint PPT Presentation

Smart Contract Dispute Resolution blockchain, law, blockchainlaw? 14 September, Bern

Content Legal Tech What is a Smart Contract? The need for Smart Contract Dispute Resolution? How Smart Contract Dispute Resolution works Automated Dispute Resolution 2 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

Legal Tech What is a Smart Contract? The need for Smart Contract Dispute Resolution How Smart Contract Dispute Resolution Technology in the Legal Industry works Automated Dispute Resolution 3 Smart Contract Dispute Resolution | 14 September 2018 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany CMS Germany

Legal Tech: Nothing but hot air? Hype Reality  AlphaGo's successor, DeepZenGo,  With the help of complex neural loses all games at the World networks (i.e. in an enormously Championship 2017, just to win structured/suitable environment) some games later, but to start Google's AlphaGo wins against the losing again. World Champion in Go (2016)  LegalBase goes bankrupt (2017)  "LegalBase will revolutionize the legal market" (2016) 4 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

Legal Tech: Nothing but hot air? Hype Reality  AskKelson was found to have  "AskKelson will soon answers all copied the results of Frag-Einen- legal questions using artificial Anwalt.de (2015) intelligence" (2012)  Miethelden (and many other funded  "The rental control will take effect startup companies) are bankrupt not least thanks to LegalTech / (2018), Mietpreisbremse is Access to Justice" (2015) considered a fail 5 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

Legal Tech: Risks? Hypothesis 1: Hypothesis 2: Within standardized procedures Legal Tech will not replace highly and/or matters with a high qualified legal work or make it repetition rate, Legal Tech can redundant in the foreseeable already make a considerable future. The more legal, complex contribution to accelerating and and individual the process, the less simplifying even those procedures suitable it is for the use of Legal that were previously reserved for Tech processing by lawyers. 6 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

Legal Tech: Opportunity? Opportunity! Legal Tech is a great opportunity for legal departments as well as for lawyers to relieve themselves of tasks that require the involvement of a qualified lawyer for control purposes only. Legal Tech allows users to focus on challenging and complex tasks. This is also true for dispute resolution procedures. 7 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

Legal Tech What is a Smart Contract? The need for Smart Contract Dispute Resolution How Smart Contract Dispute Resolution works What is a Smart Contract? Automated Dispute Resolution 8 Smart Contract Dispute Resolution | 14 September 2018 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany CMS Germany

Innovation 9 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

No Innovation 10 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

Court Proceedings • Complicated cases • Legal assessment • Assessment of facts 11 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

Smart Contracts are neither smart nor contracts . (In most cases.) 12 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

A Smart Contract is software. 13 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

A Smart Contract is (usually) only used to perform an obligation. The obligations are performed when predefined conditions are met. 14 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

Smart Contracts perform a (legal) contract 0x123 If($a>$b) { print $a } else print $b; if $a == $b { $dbh = new PDO('odbc:example', 'mydatabase', 'mybase'); $count = $dbh- >exec("INSERT INTO `db` SET `value` = '".$a."''"); print "successfully inserted"; } If($a>$b) { print $a } else print $b; if $a == $b {$ dbh = new PDO('odbc:example', 'mydatabase', 'mybase'); $count = $dbh- >exec("INSERT INTO `db` SET `value` = '".$a."''"); print "successfully inserted"; } If($a>$b) { print $a } else print $b; if $a == $b { $dbh = new PDO('odbc:example', 'mydatabase', 'mybase'); $count = $dbh- >exec("INSERT INTO `db` SET `value` = '".$a."''"); print "successfully inserted"; } If($a>$b) { print $a } else print $b; if $a == $b {$ dbh = new PDO('odbc:example', 'mydatabase', 'mybase'); $count = $dbh- >exec("INSERT INTO `db` SET `value` = '".$a."''"); print "successfully inserted"; } 0x456 0x789 15 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

16 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

? if flight_is_on_time() { pay_to_airline(ticketprice); } else { pay_to_airline(ticketprice * 0.75); pay_to_customer(ticketprice * 0.25); } 17 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

? if flight_is_on_time() { pay_to_airline(ticketprice); } else { pay_to_airline(ticketprice * 0.75); pay_to_customer(ticketprice * 0.25); } 18 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

Legal Tech What is a Smart Contract? The need for Smart Contract Dispute Resolution How Smart Contract Dispute The need for Smart Contract Resolution works Dispute Resolution Automated Dispute Resolution 19 Smart Contract Dispute Resolution | 14 September 2018 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany CMS Germany

False performance of (legal) contract 1. Contract/law and 2. Contract/law is 3. Contract/law SC do not comply not mapped in the contains undefined with each other SC completely legal terms. ("Non-Compliance"). ("loophole"). Contract Smart Contract code […] In case of flight if flight_is_on_time() { delay, the customer receives 25% of the pay_to_airline(ticketprice); ticket price. } else Except when the Except when the { airline is not ticket costs less than pay_to_airline(ticketprice * 0.75); responsible for the 100 Euro. pay_to_customer(ticketprice * 0.25); delay. } 20 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

False performance of (legal) contract 1. Contract/law and 2. Contract/law is 3. Contract/law SC do not comply not mapped in the contains undefined with each other SC completely legal terms. ("Non-Compliance"). ("loophole"). 5. Smart Contract is 4. Smart Contract is provided with provided with wrong inconsistent information. information. 21 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

False performance of (legal) contract 1. Contract/law and 2. Contract/law is 3. Contract/law SC do not comply not mapped in the contains undefined with each other SC completely legal terms. ("Non-Compliance"). ("loophole"). 5. Smart Contract is 4. Smart Contract is provided with provided with wrong inconsistent information. information. 22 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

No software is free of bugs  " The only way of writing less bugs is writing less code "  Challange: Smart contract perform obligations and move assets! Canadian stock market: 14 million dollar loss due to smart contract error Quelle: btc-echo.de Cryptocurrency Ethereum: Crowdfunding project DAO deprived of millions. Quelle: heise.de 23 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

No proper performance of contract in case of bugs in code 0x123 If($a>$b) { print $a } else print $b; if $a == $b { $dbh = new PDO('odbc:example', 'mydatabase', 'mybase'); $count = $dbh- What does that mean in practice? >exec("INSERT INTO `db` SET `value` = '".$a."''"); print "successfully inserted"; } If($a>$b) { print $a } else print $b; if $a == $b {$ dbh = new PDO('odbc:example', 'mydatabase', 'mybase'); $count = $dbh- >exec("INSERT INTO `db` SET `value` = '".$a."''"); print "successfully inserted"; } If($a>$b) { print $a } else print $b; if $a == $b { $dbh = new PDO('odbc:example', 'mydatabase', 'mybase'); $count = $dbh- >exec("INSERT INTO `db` SET `value` = '".$a."''"); print "successfully inserted"; } If($a>$b) { print $a } else print $b; if $a == $b {$ dbh = new PDO('odbc:example', 'mydatabase', 'mybase'); $count = $dbh- >exec("INSERT INTO `db` SET `value` = '".$a."''"); print "successfully inserted"; } 0x456 0x789 24 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany

Legal Tech What is a Smart Contract? The need for Smart Contract Dispute Resolution How Smart Contract Dispute Resolution works How it works Automated Dispute Resolution 25 Smart Contract Dispute Resolution | 26 January 2018 Smart Contract Dispute Resolution | 14 September 2018 Smart Contract Dispute Resolution | 14 September 2018 CMS Germany CMS Germany CMS Germany