Harmonizing Systems: Smart Contracts and Interoperability

Blockchain and distributed ledger technologies facilitate reliable exchange between unfamiliar parties without the need for traditional third-party intermediaries. One of the most discussed innovations of this technology is the Smart Contract – a computer protocol that leverages cryptography and immutability of on-chain data to enable self-executing, credible, irrevocable and transparent transactions.

While blockchain ecosystems can benefit with relative ease from Smart Contracts, this innovation’s potential to drive efficiency and transparency can only be truly realized at a global scale if Smart Contract systems can communicate easily with non- blockchain systems (Oracles) and establish the same level of trust as the Blockchain systems they are deployed on.

The C4IR, in collaboration with a multi-stakeholder community, will co-create a governance framework for following four workstreams:

– (W1) Establishing an assessment framework for legacy systems to be designated as “Trustworthy Oracle Systems” for SmartContract integration

– (W2) Legal considerations for Smart Contracts and recommended policy reforms

– (W3) Required policies for Smart Contract deployment in government

– (W4) Framework to recommend the extent of decentralisation required as per use case