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Blockchain Technology

10.4.23  Myth 12: Smart Contracts Have a Similar

Legal Value to Regular Contracts

It has become a common myth that smart contracts hold the same legal value as

standard contracts.

10.4.24  Reality

Smart contracts represent the lines of code that perform activities automatically

when specific circumstances are encountered. Thus, they do not count as fixed con­

tracts from a legal viewpoint. Nevertheless, they are utilized as evidence to identify

whether a particular job has been done. Albeit smart contracts have uncertain legal

value, they act as strong tools particularly when merged with the IoT.

10.4.25  Myth 13: Blockchain Can Store Documents

Blockchains are not about data storage, and they do not stock any physical docu­

ments or data such as text or pdfs.

10.4.26  Reality

In reality, a Blockchain doesn’t store documents; rather, it only contains the informa­

tion that a specific document exists. Instead of storing a document, it stores POW

only in the distributed ledger, which records all transactions, either failed or success­

ful, and these are never deleted. Data like documents or spreadsheets are kept in data

lakes, and the right of these resides only with the holder. Blockchain offers proof of

existence; the distributed record comprises a code that confirms the presence of a

definite file and document.

10.4.27  Myth 14: Blockchains Are Intended Only

to Aid Money Management

This myth is driven by the fact that Blockchains are suitable for financial transac­

tions. However, Blockchain is not restricted to managing only financial transactions.

10.4.28  Reality

The use of Blockchains can be witnessed in managing other transactions, such as

accelerating transactions and transaction agreements, improving transactions and

cross-border transfers, and building perceived asset-to-end purchases to quicken

the dealing and agreement of transactions, to improve cross-border trade-payments

and transfers, and to build a supply chain that is observable from end to end. A

Blockchain can increase clarity on every side of a transaction – from imports roam­

ing over a supply chain to validation of qualification as well as grades. In addition, it

can validate the testimonials of a career aspirant (Hall, 2019).