Can blockchain technology improve compliance?

Blockchain technology has been closely monitored by companies in highly regulated industries over a number of years. For many firms, blockchain presents opportunities for streamlining reporting and discharging regulatory burdens. But how can blockchain technology improve compliance, and what sectors specifically stand to benefit most?

Self-executing smart contracts are set to overhaul how commerce functions. At their most basic level, these are contracts that execute automatically when certain predetermined triggers are met, effectively eliminating layers of negotiation.

In industries where contracts are often largely standardized or repeated, the automation from self-executing smart contracts will improve efficiency and reduce costs while also providing a permanent audit trail.

Land registry is another legal function where compliance can be made significantly easier – especially in developing countries. Tracking land registration on a public blockchain ensures consistent, transparent ownership records, as well as facilitating smoother transfers of title. Verification is made easier by the immutable record of ownership, which can again be traced far more effectively than in most land registration systems. Blockchain tech will play an increasingly important role in land registration in future.

Intellectual property rights stand to benefit from blockchain too, making IP ownership rights more immediately ascertainable, recorded on a public ledger for storing evidence of first use and patent/trademark information.

The same applies to all kinds of public records administered by governments and state agencies, including census data and birth records. By storing this data on a blockchain, rather than in cold digital or paper archives, records become easier to administer, permanently stored and easily retrievable across decentralized networks.

This can even be extended as far as electronic voting and voter registration, with blockchain verification shoring up the integrity…

Source Link