Tennessee Recognizes Blockchain and Smart Contracts

March 23

Tennessee enacted a law yesterday that recognizes “the legal authority to use blockchain technology and smart contracts in conducting electronic transactions.” Under the new legislation, “A signature that is secured through blockchain technology is considered to be in an electronic form and to be an electronic signature.”

With respect to smart contracts, the law defines it as “an event-driven program, that runs on a distributed, decentralized, shared, and replicated ledger and that can take custody over and instruct transfer of assets on that ledger.”  And the law states that “no contract relating to a transaction shall be denied legal effect, validity, or enforceability solely because that contract contains a smart contract term.”

Arizona became the first U.S. state to legalize smart contracts, in 2017.

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David Zaslowsky has a degree in computer science and, before going to Yale Law School, was a computer programmer. He is currently the Chairman of the Litigation Department of the firm’s New York office. His practice focuses on international litigation and arbitration. He has been involved in cases in trial and appellate courts across the United States and before arbitral institutions around the world. Many of David’s cases, including some patent cases, have related to technology. Since 2008, David has been included in Chambers for his expertise in international arbitration.

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