Smart Contracts and Data Standards Webinar Q&A

Watch / listen to replay from May 11, 2016 with Jeff Billingham, Markit and Seth Phillips, ItBit
  1. Does a country's legal system accept legal contracts written in code/programs?
  2. How robust is the technology in terms of resisting cyber attacks?
  3. How do you propose the auditing of these transactions?
  4. Do you think the legality of smart contracts will be tested in the courts before legislation, or is legislative activity already starting? It seems we have an analog to the digital signatures legalization process a decade or more ago.
  5. How often can these programs go awry ( assuming no cyber attacks) and do not perform as expected?
  6. Your definition of Smart Contracts is of fully self-actuated machine-to-machine transactions that are untouched by human intervention. If we cannot do this within our own financial institutions (we do an enormous amount of reconciliation now), how will it be possible to do this across/with other institutions? Don't we first need global standards (the same language) for financial supply chain participants, products and the data elements of the instruments being transferred? Aren't we ahead of ourselves??
  7. How important is the network effect or network externality ( as more people use, the service gets more valuable) in making this technology mainstream.
  8. Shouldn't we be concentrating our industry's resources on transforming legal documents (prospectuses, articles of incorporation, trusts, et al) into XBRL templates so the front end of the system is prepared properly for the smart contract world?
  9. Can a party "sell" or transfer their rights and obligations under a smart contract to another party, e.g. trade their obligations on a market? Or use the contract as collateral for a loan? Or if they sell their business or if they go into bankruptcy/liquidation?
  10. How does XBRL integrate into smart contracts?
  11. Smart contracts are a combination of common IDs, standard reference data, and variable data at time of transaction order placement/execution. Blockchain seems to be ideally suited to maintain the golden copy of common IDs and standard reference data. Should we not as an industry concentrate on this first?
  12. Can you please explain how this ties to XBRL? My understanding Smart contracts is used specifically for instant data authentication [Transactions, Trades, etc] in a "ledger" format - which XBRL is in not designed to be.
  13. Bitcoin is a digital store of value. So smart contract works well with that. Are there examples of Smart contracts working with stores of value associated with Bank controlled ledgers?
  14. You mentioned that it removes the need for trust between counterparties. In a situation where settlement has to happen on T+2 and not immediately, how can a smart contract ensure that the counterparty has the money to pay on settlement date?
  15. Can multiple parties under a smart contract discuss any terms during the process?
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