Gordon Einstein On Creation Of Global Blockchain-Based Law System
Interview with Gordon Einstein, an independent crypto law consultant, who has an idea to build a global law system on blockchain in order to unite the whole world under a single decentralized jurisdiction.
Hello, Gordon! Nice to meet you here, in Tbilisi. Please tell us about yourself. What are you working on these days?
Hello everybody! Well, let’s try. I’m an attorney based in LA, California, but I travel around the world a lot because there are a lot of people who want to understand new technology trends. Also, I’m a partner at two firms. The first one, CKR Law, is based in NY but is truly international. The second is Distributed Lab where I’m the Chief Legal Officer. I’m an official adviser to some governmental institutions in Lithuania, Turkey, Malta, and the USA. I’m working on forming the law to define tokens and support ICOs.
How did you get into the decentralized world?
It’s a really interesting story because I’ve always been passionate about the way slavonic languages sound. I was at an exhibition with my colleagues when I heard Pavel Kravchenko, the founder of Distributed Lab, who was talking to his mates. We started to talk and quickly became friends. He even invited me to Odessa, Ukraine in 2014. It was crazy, because it was the time of the active conflict in Donbass. There was a crypto party and I was invited. So I went. I’ve never knew anything about Bitcoin, apart from the name. I returned to LA and started to learn programming. Since then I’ve been to Ukraine around twenty times or so. I was hearing the same conversations but they sounded different as I had passed the course in programming. The world of cryptocurrencies opened for me and I was really intrigued. I had a moment of insight and I understood that blockchain can change not only the future but also the law. I think blockchain can create a planetary digital law system.
Why do we need the global law?
The law now is not perfect. There is the EU law which we think is trustful but then we see the Brexit process and all those problems with refugees. Furthermore, the United States that claims to be the most progressive country ever, has 50 states, and each state has its own set of rules. It’s a chaos! If you own an exchange, you have to cooperate with every state you want to work in. Just imagine how much time exchanges waste now to have all these legislative things done well.
Do you think blockchain is a must to create the planetary law system?
People are used to the way things are organized. For example, banking systems are very traditional and this is the main key of their existence. It’s very hard to change this tradition. It’s almost impossible to change the rules of the global game. We can either modify the law or leave it. A person or a company can’t change it all alone, at the same time we can’t unite millions of people to do this either. So, blockchain can help create the space for instantaneous cooperation where no one can cheat or do whatever they want. It is not an Utopia because we really can do it.
Imagine if Malta and Gibraltar made their law based on smart-contracts. It creates a new jurisdiction possibility for both countries. And if all countries like Singapore, Japan, Lithuania, Switzerland united into a law alliance and created a common law practice, it would be real liberation for the biggest part of the world from the chains of uncertainty and confusion. And it can create some preconditions for the common economy space. No borders, no wars, no confusion.
But countries are proud of the national differences they have. Do you think governments will ever agree to have the same law with the neighbours?
I see your point, and I agree that there is a problem. But I don’t agree with the conclusion. I can give an example. Sometimes, people have to use something universal like metric systems. It’s so stupid, honestly, that the US uses another system, where things are measured in feet, inches and pounds. I have no clue how much meters I am.
I don’t mean that France has to stop being France or that the US has to turn into something else. I appreciate traditions, and countries are so cute in their intensions to be different and save unique brands. What I want is to go to France or Romania or wherever and not to be stressed because of different currencies, systems of measure, or laws.
Do you agree with the point that a huge variety of tokens is bad. Does it seem annoying to you?
Today a lot of things are annoying. New technologies have to be more organized and well-designed for users. Right now, we see that developers are working for developers and the whole sphere is newborn. Each ecosystem has its own token and yes, this is really annoying. But it can be solved by implementing the system which would automatically convert tokens into each other. We don’t need tokens themselves but we need to buy services istead. So tokens should be as much utility as possible. And besides, people are mistaken when they tell that tokens are unregulated. Everything is always regulated. The existing law in every period of time is designed to cover every part of human activity. When the Internet was born it was regulated just like a telephone or telegraph. And tokens now are regulated somehow. But the key point is to upgrade the law and to make it adequate.