Blockchain technology continues to be in the news. But what does blockchain mean for businesses and better said what added value can it have? And how can companies prepare for its impact?
Thousands of transactions take place every second. Each party involved in a transaction has their own record of it. The existence of multiple records creates scope for error or, worse, fraud.
One of the goals of blockchain technology is to see transactions end-to-end, reducing the scope for such vulnerabilities and improving trust, security and traceability.
What is blockchain?
Blockchain is probably the best known distributed ledger technology (DLT). Whereas a ledger in accounting is known as the principal book of accounts, in the context of DLT a ledger is a database which keeps a final and definitive record of transactions.
Blockchain and/or DLT enable a ledger to be held in a network across a series of nodes, which avoids one central party and the need for intermediaries’ services.
While its obvious application relates to securities transfers and cryptocurrencies, blockchain is increasingly being considered for a far wider range of uses, from electronic voting, to storing health records or property contracts, or even evidence for criminal trials. There is a lot of potential for blockchain to be used in many different areas.
Sector-specific blockchain expertise
Blockchain and/or DLT technology will revolutionise a very wide range of sectors – especially those involving intermediaries – from finance to law, insurance, real estate, healthcare, logistics, media and the public sector.
As a result, almost every type of organisation will find that this technology impacts their business in some way, as well as the markets that they operate in.
Our experts are here to help. We can provide guidance, helping you to understand and navigate the rapidly evolving blockchain environment – and the risks and opportunities it represents.
Exclusive Legal Partner The Blockchaingers
Loyens & Loeff is the exclusive Legal Partner of The Blockchaingers. The Blockchaingers, part of the company DutchChain, is an open innovation programme to accelerate, amplify and connect the development of solutions, knowledge and the ecosystem itself. It unlocks the potential of for example corporates, (semi-)government, regulators and start-up’s, by developing and engaging in a full year programme. The objective is to build a joint innovation cycle with a cohesive industry, to get from challenge to use case and from prototype towards implemented solution. The Blockchaingers is the largest open blockchain innovation programme in the world. Furthermore it hosts the Blockchaingers Hackathon, the largest blockchain hackathon in the world. For more information visit blockchaingers.org.
Developing a legal framework
Our team is involved in several national and international groups for the purpose of developing a legal framework for DLT technologies, such as the DLT working group of the Luxembourg Banking Association (ABBL) or the discussion group lead by the Luxembourg House of Financial Technologies (LHoFT) regarding the legal framework of ICOs.
If you would like to find out more, please get in touch with one of our specialists listed below.