Why is legal tech so far behind in terms of automation? In the financial sector most is already automated and cryptocurrency is taking that to the next level. In legal, it’s not uncommon for someone with a college degree to spend their days sifting through a mountain of documents. LegalThings is going to change this with Live Contracts. Describing persona and objects as structured data and procedures as finite state machines makes it possible to bring automation like workflow management and machine learning to legally binding contracts. Interacting with the contract automatically builds an immutable and verifiable audit trail. To build this audit trail, each Live Contract creates a miniature private blockchain that’s only shared between the parties involved. Where private consortium blockchains only work with large organizations, the LegalThings plat form allows small companies and individuals to share a private chain. Live Contracts are fundamentally different from smart contracts. A smart contract is code that defines hard rules for conditional transactions. A Live Contract is a digital representation of an agreement or regulation that may be enforced by law.
Started in 2014 as platform to create, share and sign contracts in a digital way. After the success of our first company FIRM24.com, we believed that DTM (Document Transaction Management) would be the next big thing after ERP and CRM-systems.
We released the first version of the LegalThings platform. This version introduced a document and form builder, a document management system, advanced user and permission management and digital signing.
For FIRM24 we had created software to run the procedures behind an incorporation. Other customers were also interested in these digitized procedures. We did a small pivot, now focusing on digitizing the contracts as finite state machine, rather than just signing.
We have explored different methods of providing proof of signed documents. While other parties relied on trust and certifications, we wanted a better solution. We started using the blockchain for proof of existence.
We experimented with Ethereum Smart Contracts and found out that it could only be used for self-enforcing agreements. Inherent constraints make them unusable for legally binding contracts.
Instead, we found a much better solution in using our FSM in combination with the blockchain.
During the blockchain hackaton organized by the Dutch ministry of Justice and Security, we demonstrated that a whole law can be digitized as a FSM and stored on the blockchain. This won us the first prize in the event which included the assignment to create the first digitized Dutch law on the blockchain.
Our token pre-sale starts on the 6th of December. For 24 hours, the pre-sale is open only for members. You can register to be whitelisted and participate in this members-only pre-sale. After the whitelist pre-sale, we'll continue with a public pre-sale.
We'll launch the LegalThings One platform as beta. All token holders will be able to use the platform. New content, like (live) model contracts will be added in the coming months.
All tokens represent the full capacity of the LegalThings One platform. During this sale we'll sell licenses (represented by LTO tokens) for the platform.
We'll publish the Live Contract syntax as open standards under the CC-BY-SA license. Software to run Live Contracts will be available under the MIT license. This will allow third-parties to to create and run Live Contracts without relying on LegalThings One.
To set precedence of the legality of data stored on the blockchain, we'll initiate trials in several countries. The following countries are candidates for these trials: United Kingdom, United States, India, Russia and the Netherlands.