The new law takes advantage of the blockchain’s ability to confirm that information transferred to it is authentic. In the legal system of the US and other countries, a document or record must first be authenticated before it is introduced into a legal proceeding, according to the rules of evidence. In other words, a party that wants to introduce a record as evidence must first demonstrate that the record is what it appears to be. For example, in order to propose that an email be admitted as evidence, the sender may testify to verify that she or he sent the email. When large volumes ofemail or other pieces of data exist, this approach can prove difficult. The new Vermont law presumes that documents written to the blockchain are authentic. As long as verification can be obtained as to the date and time of recording of information in the blockchain AND such information is entered as a regular practice, the information qualifies as a self-authenticating record and regularly maintained business record for purposes of any legal proceeding in a Vermont court. As a result, information recorded to the blockchain can then be presumed to be accurate for purposes such as:
A. determining contractual parties, contractual provisions, and the execution of documents
B. determining the ownership, assignment, negotiation, and transfer of money Importantly, the presumption doesn’t apply to the contents of the record itself. While a document written to the blockchain could be introduced as evidence per the requirements, the contents of the document could be challenged as inaccurate by parties in a legal proceeding.