Clifford Chance
Blockchain Promises Broad Solutions: Development and adaptation of the technology to new industries are speeding ahead
8 November 2017
This article was first published in Metropolitan Corporate Counsel, November 2017 issue.
In recent months we’ve witnessed an explosion of legal and regulatory developments involving blockchain and distributed ledger technology. Such diverse authorities as the Commodity Futures Trading Commission (CFTC), the U.S. Department of State and the Cook County (Illinois) Recorder of Deeds have studied the technology and its potential applications inside the boundaries of their respective jurisdictional bailiwicks. Given that the virtual currency bitcoin represented blockchain’s first use, it is not surprising that federal financial regulatory agencies were the first to encounter the technology in the markets they regulate. Blockchain’s strengths include transparency, cryptographically enabled security, resiliency, immutability, auditability and near-instantaneous transfers. When coupled with smart contracts, blockchain enables both trade execution and recordation to take place almost instantly, making it naturally suited to payments, clearing and settlement functions.
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Blockchain Promises Broad Solutions: Development and adaptation of the technology to new industries are speeding ahead
