Tag Archives: Smart Contracts

Three ways to indemnify your business (or your client’s business) from smart contract risks

This post builds on our previous exploration of indemnification for smart contract risks.  Today, we suggest three tools to address these risks:  (1) cybersecurity insurance policies, (2) indemnification agreements with outside vendors, and (3) “make whole” agreements among the smart contract parties themselves.  Collectively speaking, insurers, vendors, and other contract parties can provide the best … Continue Reading

My smart contract just ate $14 million—now what? Re-thinking indemnification for smart contract risks.

A Canadian digital currency exchange (QuadrigaCX) reported recently that a malfunction in a smart contract is responsible for a $14 million dollar loss of the cryptocurrency ether.  You can read more about the company’s technical explanation here, but the upshot is that a software upgrade performed by the company had an error in the code that … Continue Reading

Finding Resiliency in Microgrids

This is the fifth and final in a series of posts that breaks down our article, “Smart After All: Blockchain, Smart Contracts, Parametric Insurance, and Smart Energy Grids,” recently published in the Georgetown Law Technology Review. We have discussed the enforceability of blockchain-based smart contracts under ESIGN and UETA and a few promising smart contract … Continue Reading

Rethinking the Energy Industry with Smart Meters

This is the forth in a series of posts that breaks down our article, “Smart After All: Blockchain, Smart Contracts, Parametric Insurance, and Smart Energy Grids,” recently published in the Georgetown Law Technology Review. We previously discussed the enforceability of blockchain-based smart contracts under ESIGN and UETA and the application of blockchain-based smart contracts for … Continue Reading

New Models of Insurance: Parametric Insurance

This is the third in a series of posts that breaks down our article, “Smart After All: Blockchain, Smart Contracts, Parametric Insurance, and Smart Energy Grids,” recently published in the Georgetown Law Technology Review. We previously discussed the enforceability of blockchain-based smart contracts under ESIGN and UETA and the application of blockchain-based smart contracts for … Continue Reading

Efficiency Gains in the Insurance Industry

This is the second in a series of posts that breaks down our article, “Smart After All: Blockchain, Smart Contracts, Parametric Insurance, and Smart Energy Grids,” recently published in the Georgetown Law Technology Review. We previously discussed the enforceability of blockchain-based smart contracts under ESIGN and UETA and will now look at the application of … Continue Reading

The Enforceability of Smart Contracts

This is the first in a series of posts that breaks down our article, “Smart After All: Blockchain, Smart Contracts, Parametric Insurance, and Smart Energy Grids,” recently published in the Georgetown Law Technology Review. First, we will discuss the enforceability of blockchain-based smart contracts followed by four use cases: simple insurance contracts, parametric insurance, smart … Continue Reading

Best Practices for Limiting Liability Arising from Smart Contract Vulnerabilities

It is no secret that smart contracts have vulnerabilities.  Today’s post suggests a mix of best practices to limit potential liabilities that may arise when vulnerabilities interfere with smart contract performance. But first, some background:  One recent survey of 19,366 Ethereum-based contracts found vulnerabilities in 45% of them.  Perhaps the most publicized example of a … Continue Reading

Tips for Drafting Arbitration Clauses in Smart Contracts

We have suggested previously that arbitration may be a preferable alternative to court for smart contract disputes to (i) ensure a knowledgeable decision-maker handles the dispute, (ii) protect proprietary information, (iii) gain flexibility in scheduling and procedures, and (iv) pre-select the right forum.  Of course, arbitration doesn’t happen on its own – it typically requires … Continue Reading

Four Reasons to Put an Arbitration Clause in Your Company’s Smart Contracts

Many in the blockchain industry expect smart contracts to enjoy significant (perhaps exponential) growth in real-world applications beginning this year.  This was the general consensus at the industry’s first ever Smart Contract Symposium in New York City this past December.  More than 250 leaders in blockchain, finance, law, and other industries gathered at the Microsoft … Continue Reading
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