Everything will be tokenized and connected by a blockchain one day
We are living in the 21st century, a century in which technology is
advancing/evolving with the speed of light. This is a progressing virtual world
of global computers having networks of interdependent information technology
infrastructures, telecommunications networks and computer processing systems, in
which online interaction takes place. present day world we all are vulnerable to
Cyber crimes, so in article we will discuss about how can we and our legal
industry will be safe if we use recently developed Blockchain technology
What is blockchain technology? Starting with an example:
Have you ever thought you do a transaction of 10 Rs from your UPI and
automatically it reflects in your bank statement , how this works ?
Though they don't use this technology but to understand better we used this
Blockchain is basically a distributed public ledger which is used to maintain a
database and can also be called as a network of servers which maintained and
joined to each other by Nodes .
Earlier we used to have a single server which used to control the entire system
but in blockchain it is distributed in different nodes which eventually
eliminates the middleman and passes on the control to its users ,comparing these
two blockchain is much more secure and free from hacks and cybercrimes.
How blockchain works?
Blockchain was solely introduced for cryptocurrency such as Bitcoin and ethereum.
Crypto currency is a digital form of money which does not have a physical
existence like the hard or soft money that is circulating throughout the public
in today�s economy. Blockchain technology is used in Bitcoin to get rid off the
third parties in their transactions. Blockchain is used as an inventory which
stores transactions and prepare different blocks with information pertaining to
senders and recipients, digital token or digital coin, amount of digital token
spend, date and time of transaction.
Considering the security aspects of blockchain, it has been used extensively in
cryptography, it was successfully solved the problem of double spending and
forging of bitcoins and other digital currency.
Is blockchain free from cyber crimes and hackings?
Considering the security standards of blockchain, it comes second to none and is
the superlative without an equal in the technology industry today.
Hacking blockchain is like herding cats for the reason that it already has a
database which is accessible by all of its users where all the transactions can
be reviewed by any user which makes it more secure as a counter party agreement
is required before making any change to it. It is counter-intuitive but the lack
of privacy is benefit of using a blockchain technology.
In every 10 mins a new block is added to the blockchain
and it carries information of a set of transactions , each block contains its
own unique code also known as �Hash Code� and if a valid hash code is not
predicted by a hacker hash code of every succeeding block changes.
Till now we have discussed about what is a blockchain, how it works and is it
safe or not? In the following section I will walk you through on its usefulness
in legal industry.
Smart contracts are basically self executing contracts between two parties buyer
and seller along with terms of agreement .The agreements exists in a
decentralised network of blockchain. Code controls the executions and
transactions which are irreversible and traceable. Smart contracts can be
considered much more secure than the traditional contracts because of blockchain.
One of the most prominent feature is that it removes the middlemen and it
eliminates unnecessary contracts costs which ultimately results in
There have been a lot of discussions on smart contracts, some made it more easy
and clear and some made it more difficult for us to adopt this technology. One
of the basic provisions for foundation of a contract is Section 10 of Indian
contract Act 1872 discuss about the legality of object and consideration without
a central regulatory institute because of its decentralised structure. Hence
contracts with illegal objects can also exist as legality of object and
consideration is not judged by the government agencies. Therefore, illegal
contracts can also be formed . There can also be formation of smart contracts
without meeting of minds because of electronic agents .Hence, the self-executory
nature of smart contracts may go on defying some of the basic rules of
In India the existence of smart contracts and cryptocurrency is a tough
statement as it was banned by the Reserve Bank of India in 2018. But in one of
the recent judgements of Supreme court of India it has been stated that
transactions in digital currency and cryptocurrency is valid. Seeing to this
decision NASSCOM and payment council of India asked RBI to include Smart
contracts and crypto-technology in the regulatory sandbox under the guidance of
RBI the Insurance Regulatory and Development Authority of India (IRDAI) and the
Securities and Exchange Board of India (SEBI) for comprehensive assistance and
evaluation This initiative would provide benefit to the developers and help in
devising regulatory framework and methods to cover issues which are evident in
Basic aim of Smart contract with the concept of blockchain technology is to
reduce frauds as wells as extra transaction costs which are caused in
traditional contract formation , this also ends third party interference and
involves directly buyer and seller , considering the drawbacks and loopholes
of this concepts is there is no organization to monitor the legality of these
contracts, contracts can be formed by unlawful object and consideration,
considering secure nature of this technology it would provide us with greater
help in future. and at last I would like to mention that we are never perfect
with technology we just improve therefore we can adopt this technology to
make our environment much more faster and secure.
Award Winning Article Is Written By:�Samarth Nair
(BBA LLB) 2nd year - Presidency University,
Authentication No: NV31667201315-11-1120