The R3 blockchain consortium is the center of distributed ledger technology development these days. One of their new initiatives revolves around master templates for smart contracts. This particular technology would automate trading and management of securities in a semi-rustless environment. For now, the consortium is only exploring the development of such a repository.
Creating Templates For R3 Smart Contracts
One of the downfalls of using distributed ledger technology in a permissioned environment is how fractured things can get. Every participant stores their version of contracts, which creates inconsistencies and other challenges. A smart contract, using distributed ledger technology, would create a unified standard among all participants.
Barclays, Isda, R3, and others are looking into creating a master templates repository for smart contracts in the financial sector. One of the primary points of focus right now is ensuring they can be implemented within existing frameworks. This will pose new legal and regulatory challenges that need to be overcome, though. R3 Consortium CTO Richard Brown told the media:
“The promise of distributed ledger technology is that we can move to a world where sophisticated financial agreements between firms can be recorded and managed consistently and accurately without duplication, error or unnecessary cost. However, for this vision to be realised, more than just innovative technology is required: this technology must be embedded in a broader legal context and be sympathetic to the reality of business.”
The consortium has put together their long-term agenda as well. Working together with academics and the legal community is of the utmost importance to establish these smart contracts templates. After all, the technology used needs to be eligible for admission in court. Resolving any disputes that may arise will need to fit within existing regulatory and legal frameworks.
