When looking for a national blockchain that businesses could use to easily share smart legal contracts, Australia just decided to build its own.
Dubbed the Australian National Blockchain (ANB), the large-scale, cross-industry platform is being built by IBM, who’s been contracted by Data61, the digital innovation arm of the Commonwealth Scientific and Industrial Research Organization (CSIRO). IBM will be developing the platform in partnership with the multinational law firm Herbert Smith Freehills.
The Australian National Blockchain platform will enable Australian companies of all kinds and sizes to exchange data and confirm the authenticity and status of legal contracts using smart contracts. In addition, the platform’s Smart Legal Contracts (SLC) will be equipped with smart clauses which are capable of recording data from external sources such as the Internet of Things (IoT), thus allowing these clauses to self-execute in the event the conditions stipulated in the contract are fulfilled.
According to a press release, a typical example of SLC in use would be that one of the sensors on a construction recording the time and date of delivery of material load on the blockchain which then triggers a smart contract between a construction company and a bank. Next, the smart contract automatically notifies the bank that the terms have been met so it can facilitate payments on the delivery.
The project pilot, which is powered by IBM blockchain, is expected to start before the end of the year. A wide range of industry players will be invited to participate including regulators, banks, law firms, and businesses.
Vice President and Partners IBM Global Business Services, Paul Hutchinson said:
“Blockchain will be to transactions what the internet was to communication – what starts as a tool for sharing information becomes transformational once adoption is widespread. The ANB could be that inflection point for commercial blockchain, spurring innovation and economic development throughout Australia.”
Blockchain to transform Australia’s legal industry
The Australian National Blockchain, which is completely legal under Australian law, is poised to bring real changes to the country’s legal sector and overall business landscape by streamlining business operations and enhancing efficiency and transparency in the supply chain. By eliminating manual paper-based systems, the new platform will enable businesses to collaborate seamlessly and share information with customers and regulators quickly and securely.
Australia is currently one of the most blockchain-friendly countries on the Asian continent, and home to a few exciting projects such as the world’s first blockchain-based bond, Yojee blockchain platform that aims to streamline the county’s freight and logistics industry, among others.