UETA and Blockchain.pdf

The document discusses the relationship between the Uniform Electronic Transactions Act (UETA), the federal Electronic Signatures in Global and National Commerce Act (ESIGN), blockchain technology, and smart contracts. It emphasizes that amendments specifically addressing blockchain or smart contracts are unnecessary and could undermine the efficacy of the UETA. The UETA and ESIGN establish a legal framework for electronic signatures and records, ensuring their legal effect and enforceability. The concept of smart contracts, originating from Nick Szabo in 1994, is explained as computer code designed to execute predefined actions upon meeting certain conditions. The document clarifies that smart contracts are not equivalent to legal contracts and may not always be legally enforceable. It also highlights the importance of technology neutrality in UETA and ESIGN, discouraging the need for specific technology mentions in legislation. Proposed legislation related to blockchain and smart contracts is critiqued for potential redundancy, inconsistent definitions, and the risk of federal preemption. The document advocates for maintaining the uniformity of UETA and ESIGN to provide legal certainty for electronic transactions.