SME Blockchain Primer

December 10, 2018 | Imran Ahmad, Katherine Barbacki

Recognizing the growing importance of distributed ledger technology (commonly known as “Blockchain”) for businesses of all sizes, on December 5, 2018, Miller Thomson LLP published its latest edition of Proof of Stake, a publication dedicated to practical legal considerations when it comes to blockchain technology. This issue is focused on small and medium sized businesses.

Some of the highlights from this edition include:

  • Coin Offerings and Token Sales As a Tool for Capital Raising. Partner Derrek Fahl explains how initial coin offerings (“ICO”) and token sales have disrupted the traditional capital raising model for small and medium enterprises (“SME”). This is in large part because ICOs and Token Sales create a direct line between companies seeking capital and potential investors.
  • Blockchain to Reduce Regulatory Burden. With regulatory costs representing a significant burden for SMEs, blockchain offers a potential alternative that will allow SMEs to compete more effectively and in a cost-effective manner. Insights shared by YYCHAIN Innovation Association.
  • Blockchain Meets Artificial Intelligence. Professor Alexander Wong and Partner Tai Nahm discuss the potential of artificial intelligence and blockchain to develop applications that can help SMEs. They also address common legal issues and concerns.
  • Simplified Agreement for Future Tokens (“SAFT”). Partner Marc Richardson Arnould discusses how a business looking at an ICO can enter into a SAFT with accredited investors pursuant to which the issuer, immediately upon signing the agreement, receives funds from the accredited investors.

These and other topics are covered in more depth in our latest issue of Proof of Stake: Blockchain Matter for Small and Medium Sized Businesses. To access the publication, click here.

Disclaimer

The blog sets out a variety of materials relating to the law to be used for educational and non-commercial purposes only; the author(s) of the blog do not intend the blog to be a source of legal advice. Please retain and seek the advice of a lawyer and use your own good judgement before choosing to act on any information included in the blog. If you choose to rely on the materials, you do so entirely at your own risk.