Earlier this month, Broken Hill City Council (Council) General Manager, James Roncon signed and executed a construction contract for rectification works at the Civic Centre using Redenbach Lee Lawyers’ Ethereum Blockchain platform.
The Ethereum Blockchain platform is a highly advanced and decentralised internet-based system operated by a peer-to-peer network of participants, was used to simplify the deal-making process. This new process was developed by Redenbach Lee Lawyers to facilitate long-distance contract execution in order to make contractual processes easier for many of its clientele including remote councils. The development was supported in collaboration with Block 8 Technologies.
Council was able to digitally sign a construction contract in a way that has never been done before through the Ethereum infrastructure. Storage on the Blockchain network enables users to verify the document itself as well as perform audits on the data stored well into the future.
If adopted by other regional Councils and counterparties, Blockchain contract execution could have a significant impact in connecting regional New South Wales to the rest of Australia and abroad. By using Blockchain contract execution, time savings and cost efficiencies are realised by removing the distance barriers often experienced by remote regions.
Co-inventor of this innovative new method of contract execution, Greg Lee, partner of Redenbach Lee Lawyers said that ‘our process of Blockchain contract execution enables contractors and Council to access a decentralised final version of the contract.’
General Manager, James Roncon said ‘the whole process was surprisingly painless’. Samuel Brooks of Block 8 Technologies said ‘Blockchain offers explosive innovation opportunities at a global scale. This technology is transformative for all forms of financial agreements and will carve out huge efficiencies in a number of verticals by disintermediating trusted third parties.’
Co-Inventor Keith Redenbach partner of Redenbach Lee Lawyers said that ‘innovation like this will ultimately revolutionise the way remotely located parties are able to interact with their counterparties.’