Read the latest blog post from our new portfolio company, Clause:
Today brought fascinating news of the world’s first shipment of goods supported by a letter of credit using blockchain-based smart contracts and the Internet of Things (IoT). The sale and delivery of 88 bales of cotton from Texas to China between affiliates of Brighann Cotton, and supported by their banks Wells Fargo and CBA, is taking place on the Skuchain Brackets distributed ledger technology.
As reported by Global Trade Review, in addition to payment for the cotton being triggered as soon an embedded GPS device indicates the cotton was delivered, Michael Eidel of CBA stated that their next step “could be to add sensors to measure if the range of permitted humidity and temperature were exceeded.”
Given this news, we thought it timely to give further insight into our work in this area. As mentioned in our last blog post and investment announcement by Legaltech News, early this year Clause produced our initial version of the world’s first ‘IoT-enabled’ legal contract. This was demonstrated to Dentons — the world’s largest law firm — and took the form of a data-augmented natural language supply agreement that provides a legal basis from the ground up for the very functionality mentioned above. Notably, this is distinct from a blockchain-based ‘smart contract’ — where the use of the term ‘contract’ is a misnomer (also see the comments from Vitalik Buterin). The supply agreement linked to an IoT platform to draw in humidity and temperature data to monitor breach conditions and provide dynamic pricing. The latter provides a means for legal contracts to update and provide a real-time state.
Click here for the full article from Clause on Medium