Electronic Signatures On Blockchain To Be Recognized In Switzerland
The University of Applied Sciences in Zurich (ZHAW), together with the telecom company Swisscom, has developed a certified electronic signature for legal authentication of smart contracts based on blockchain, Cointelegraph reports with reference to the Cash outlet.
A prototype of a smart contract on the Ethereum blockchain was created with the joint participation of lawyers and engineers of the university. This prototype was then included in the interface of the electronic signature service developed by Swisscom. The electronic signature serves as an analog to the manual one and complies with the requirements of the Swiss law.
After verification, the e-signature automatically confirms the terms of a smart contract, which can be used for the transfer of assets, rights, or agreements.
The service will help eliminate some legal ambiguities in the application of smart contracts, which is especially significant for Switzerland, where there is a mandatory form of concluding contracts in writing, Harald Bärtschi, Professor of the School of Management and Law at the university, stated. According to him, many have doubted so far that data transfer on blockchain meets legal requirements, but the new solution has a high degree of protection and confirms the authenticity of signatures.
Not only the regulatory practice in Switzerland requires the signature of several parties when concluding contracts, but also the EU regulation called eIDAS, so the new solution can be applied in international legal practice. Apart from Ethereum, it is compatible with the Hyperledger and Corda R3 blockchains.
As previously reported, Vontobel, an investment bank of Switzerland, offered a service for the crypto asset storage for financial organizations.