One of the main advantages of Blockchain technology is the increase in security at an international level, which is mainly due to its distributed and publicly auditable nature. This is what Diego González, Blockchain Expert from Docuten, tells us in this video.
A distributed infrastructure of the so-called “public” or “permissionless” usually has a transnational character, so that the fact that an individual carries out a certain operation on a smart contract, or performs the transfer of a digital asset to a crypto-currency, is reflected identically in thousands of nodes spread across the planet, is something that can seen with a global dimension.
In that sense, if we return to the statement concerning smart contracts that defends a identification, more formal than symbolic, between the code and the law, things get interesting when talking about distributed networks. Because what the code offers us in this case where we execute on the blockchain network is to comply with the function of being a self-executing law, which taking into account that the network is distributed globally, this offers us a kind of supranational jurisprudence “de facto”. This is very interesting because we find a cryptographic system that operates on its own transparently and publicly auditable and has an international, transnational character. This framework of peer agreements operates on a global scale and at the touch of a click. This is a very interesting thing.
Public networks have the advantage of not being reprehensible, anyone can use them, they extend their functions to all humanity regardless of the system of government that operates within the borders where the individual is. This potential allows countries with intervened economies, dictatorships or questionable democracies, blockchain and other distributed technologies to represent certainty, continuity and a mechanism to exchange value, information, without fear of censorship or suddenly being cut off from communications.
However, in the business sphere, this advantage can become a drawback. The global nature of blockchain public networks implies that these networks exist outside, or above, state legislation. The idea of having a crypto-legal framework where “the code is the law” is a fascinating and very romantic idea, but not necessarily compatible in the short term with business activities of entities operating within a national or regional legal framework, as is the case of the European Union.
In relation to this, it is interesting to highlight the appearance of networks that are called permitted or semi-public that allow a compromise between the disruptive promise of blockchain technologies and current legislation, so that companies, non-profit organizations and even public administrations can take advantage of this technology while complying with local legislation.
In the case of the Alastria Telsius network, which is the network in which the smart contracts of our product Docuten operate, all the nodes are located in countries of the European Union. In the end, the network’s framework for action is reduced and, in this sense, we are not talking about a global infrastructure, but rather a network which, despite having been born in the Spanish national sphere, is projected at a regional level, at a European level, and the nodes are distributed throughout the European territory.
This provides peace of mind for our clients and for ourselves, because this allows us to enjoy the advantages of decentralization but under the umbrella of a national and European legal framework, without taking risks.