Blockchain technology will bring fundamental change to a variety of business processes. Beyond the area of finance, the blockchain as a transactional layer transforms industries as diverse as manufacturing, energy, automotive, retail and healthcare. Whilst most experts agree on the significant impact of blockchain on that general level, defining feasible blockchain-based business processes is challenging. Codelegit provides solutions to bridge the gap between blockchain technology and law.
On Bitcoin, the world’s biggest blockchain, only a limited number of business cases beyond financial transactions are feasible. For instance, Bitcoin’s architecture doesn’t allow the use of smart contracts that would be required to represent business decisions on a technological basis. Potentially, there will be a fork of Bitcoin, which would literally result in two different Bitcoin blockchains with one of them most probably suitable for smart contract deployments.
Representing business logic in software code
Now, representing business logic in software code seems to be obvious and straightforward. However, two key elements of a blockchain, its immutability and the ability of smart contracts to run autonomously, add unprecedented requirements to the functionality, the security and the compliance of software code: Imagine an automobile manufacturer planning to use smart contracts to let a car autonomously decide on some actions, such as entering a parking garage, contracting a refueling process with the gas station, etc.. The auto maker must guarantee that these machine-driven decisions will be executed correctly and according to applicable regulations and laws. That means, the code has to be tightly connected to one or more external sources – aka oracles – providing the appropriate legal framework.
Technology and legal departments
The smart contract code will be produced in a technology department. The know-how about the legal framework is represented by the legal department of the automaker. Both, the technology side and the legal side, have to come together to produce code that incorporates regulations and the law. Typically, neither software engineers, nor legal experts, do have specific knowledge of the field of expertise of the other party. Nevertheless, both have to make sure that they understand each other perfectly and that the software engineer comes up with code that without doubt matches the above mentioned requirements in detail.
Codelegit – Bridging the gap between technology and law
Bridging this gap between technology and law ist the purpose of Codelegit. In order to maximize the economic and social benefits, disruptive technologies must be embedded in legal frameworks. Codelegit offers practical solutions of legitimizing software code to engineers and lawmakers. Based on our in-depth technological knowledge and longtime experience in designing and implementing blockchain solutions for leading companies from industries such as manufacturing, logistics and energy, we have created Codelegit as a practical solution for companies in need of representing business logic in software code.