McCarthy Tétrault and OpenLaw collaborate on loan agreement smart contract project powered by Ethereum blockchain
Earlier this year McCarthy Tétrault announced its membership with the Enterprise Ethereum Alliance (EEA), the world’s largest open source blockchain initiative and the EEA Legal Working Group, founded to bring together leading global law firms and leading legal minds to explore building legal use cases and applications using blockchain technology. In addition, McCarthy Tétrault became a contributor to the OpenLaw smart contract project.
These collaborations have yielded groundbreaking results, providing the first step in demonstrating how automation and execution of loan agreements on the blockchain can vastly improve processes. This demo illustrates how a standard loan agreement can be executed using the OpenLaw protocol and an Ethereum smart contract. It also shows how a traditional loan transaction, through the use of an Ethereum-based smart contract, can be performed without the need to rely on centralized institutions to calculate and manage the actual flow of funds between parties. This is believed to be the first smart contract demo by a Canadian law firm. See here for our press release on this innovative project.