For anyone who has had to deal with the legal entanglements that can come from business transactions across international borders, the thought of streamlining the system into standardized text documents that are easier to follow and prepare will be a welcome idea. Thanks to blockchain Startup CommonAccord and their partner and banking giant BNP Paribas, this is now not just an idea but a potential future. They plan to create an open source system using the blockchain platform to provide an ongoing library of standardized texts that will ensure the much fragmented legal environment becomes a more streamlined process to deal with.
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One of the consequences of the digital revolution that has taken place in the last two decades is that the world is now a much smaller place. Small businesses and individuals can communicate, work and deal with others from more or less any country in the world more easily and cheaply than at any time in our history. However, there is a downside to this, it also means that everyone who does this is also having to deal with disparate laws from numerous countries. The technicalities of the law are difficult enough to follow in your native language and home country, but across multiple other countries, languages and cultures it can be all too easy to fall foul of a very fragmented legal arena.
BNP Paribas, the global banking business, has recently selected blockchain startup CommonAccord to begin development of global text codes for transferring legal documents utilizing the distributed ledger blockchain technology. The idea is to build a library of standardized legal texts, which will help streamline BNP Paribas’ own dealings across international borders, however they also have chosen to adopt an open source model, which will allow others to benefit from the work and freely add documents to the system. CommonAccord founder Jim Hazard has said that Bitcoin’s underlying technology, blockchain, and the open sourcing of transacting that it represents, is why this is now possible to accomplish.
The project plans to accommodate everything from startup legal documents to financial statements and so on, creating a much more transparent system for people within different legal jurisdictions. The benefits for all kinds of businesses and even individuals as this project progresses could be huge, cutting legal fees as well as the time needed to deal with legal issues in international trade.
More significantly, this is yet another demonstration of the flexibility of the blockchain platform, and the ingenuity within the industry that is finding such unique ways of utilizing the technology. As blockchain begins to spread further and prove its value and integrity, interest in cryptocurrency grows alongside it.