Why Blockchain?
Technology Unlocks Value
Blockchain uses smart contract rules to execute transactions, which are enforced by transparent, self-executing code. This ensures all parties understand the logic. Smart contracts execute and immutably record all transactions, making them visible to all participants. Utilizing smart contracts brings unparalleled operational efficiency and transparency.
First Reason
Programmability
Potential Self Executing Features
•Automated Dividend Payments
•Ownership Transfers
•Compliance Checks (KYC&AML)
•Voting Rights
•Asset Fractionalization
•Escrow Features
•Buyback & Redemptions
•Burn Mechanisms
•Whitelist Management
•Automated Audits
•Expiration & Renewal
•Document Sharing & Signatures
Second Reason
Legal Precedence
Legal precedence ensures predictability and stability in the legal system, especially as technology evolves. Courts rely on past rulings to guide present decisions and the same applies for smart contracts, decentralized finance, and tokenized assets. This helps interpret blockchain matters under existing laws which reduces uncertainty and encourages wider adoption of new technologies.
Securities Exchange Com.
V. AriseBank 2018
The court granted the SEC's request for an emergency asset freeze and appointed a receiver to recover investor funds, highlighting the importance of blockchain data in regulatory enforcement
SEC charged AriseBank with fraudulently conducting an Initial Coin Offering (ICO).
SEC used Ethereum blockchain data to demonstrate the misuse of funds by the defendants.
Commodity Futures Trading Com.
v. My Big Coin Pay 2019
The court ruled in favor of the CFTC, validating the use of blockchain evidence to support fraud allegations.The blockchain evidence proved fraud, highlighting the importance of blockchain analysis in regulatory actions.
CFTC charged My Big Coin Pay, Inc. with fraud and misappropriation of investor funds.
CFTC used Bitcoin blockchain records to trace fraudulent transactions and fund misallocation.