Blockchain, often associated with Bitcoin and other cryptocurrencies, holds significant potential and is considered by many as the technology of the future.
Features and Potential
This technology enables the storage of information in a completely decentralized, secure, and transparent manner. It functions as a public digital ledger where every modification or transaction is recorded and autonomously validated by a secure network. Once entered into the blockchain, the data is automatically timestamped and becomes immutable, making it an almost infallible tool for proving or tracking transactions or information.
Its legal potential is evident and offers numerous applications.
In Belgium, as elsewhere, it could profoundly transform evidence law, particularly in matters of intellectual property and ownership of movable and immovable property. This revolution is based on blockchain’s ability to create immutable and transparent registries, altering the way ownership rights can be established, contested, or transferred.
A Revolutionary Alternative to Traditional Evidence Law
Evidence law traditionally relies on written documents, testimonies, or legal presumptions. While the principle of free evidence has been reinforced by Book 8 of the new Belgian Civil Code, which also introduced “plausibility” as a standard of proof, the admissibility of blockchain-based evidence remains legally uncertain in Belgium due to the lack of specific legal provisions.
Yet, lawmakers would do well to explore this technology and leverage its inherent features, which are particularly relevant for strengthening evidence law.
In this respect, blockchain provides the following guarantees:
- Immutability of data: Once recorded, information on a blockchain cannot be altered, offering a reliable digital proof.
- Traceability: Each transaction or entry is timestamped and cryptographically secured, ensuring data authenticity.
- Accessibility: Data recorded on a public blockchain is accessible to all, drastically reducing reliance on traditional intermediaries.
These features make blockchain an ideal tool for proving ownership rights by tracing the history of transfers and ownership of an asset.
In China, courts have been exploring this technology for several years. For example, the Hangzhou Internet Court decision of June 20, 2018, attracted global attention by recognizing blockchain-based evidence. This case involved a copyright dispute where the plaintiff opted to certify their work on a blockchain rather than through a notary. The court accepted the blockchain evidence in favour of the plaintiff, a decision later upheld by China’s Supreme Court.
Belgian and European lawmakers, often lagging behind their American and Asian counterparts in adopting new technologies, would greatly benefit from integrating this underutilized innovation into the foundational pillar of evidence law.
Impact on Proving Ownership of Movable Property
For movable assets like artwork, cars, or jewellery, proving ownership is often challenging, as these assets are not typically registered in publicly accessible official records.
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Under current law, ownership of movable property is often primarily proven through possession. A person in possession of movable property is presumed to be its owner. However, since the possessor is not always the actual owner, this rule often leads to injustices that blockchain technology could address.
Blockchain could provide significant advantages by associating each movable asset with a digital ownership certificate recorded on the blockchain.
This would enable the demonstration of ownership and transaction history in disputes, drastically reducing the number of lengthy and costly legal proceedings involving experts or witnesses to establish ownership.
Impact on Proving Ownership of Immovable Property
For real estate, blockchain could revolutionize the Belgian land registry and notarial processes.
Key advantages would include:
- Securing notarial deeds: Sales and mortgage deeds could be recorded on a blockchain to enhance security and simplify searches.
- Cost and time reduction: Property transfers could occur instantly through smart contracts, eliminating burdensome administrative procedures for land registry publication.
- Increased transparency: Blockchain could integrate information on the property’s history (e.g., renovations, damages, zoning violations), providing buyers with a comprehensive view without intermediaries.
Countries like Sweden and Georgia have already experimented with blockchain for modernizing their land registries, yielding promising results.
There is little doubt that other countries will eventually follow this trend.
Conclusion: A Significant Technological Opportunity Requiring Substantial Adaptation
Blockchain is not a magical solution, but it opens up fascinating possibilities for modernizing evidence law. By enabling reliable digital proofs, automated property transfers, and increased transparency without intermediaries, blockchain could revolutionize the current legal framework, ushering in a new era of trust and transparency that would significantly reduce the number of disputes and legal proceedings.
However, implementing blockchain requires thorough consideration of its legal, technical, and ethical implications. Additionally, to ensure a smooth and secure adoption, a complete overhaul of the existing legal framework would be needed—likely a challenge given the entrenched role of traditional intermediaries.
Nonetheless, it is certain that this technology will gradually infiltrate various sectors in Europe, especially as more states, institutions, and major companies begin to integrate or at least tolerate blockchain in their financial, monetary, and legal systems.
With recognized expertise in cryptocurrencies and their underlying technology, Vanbelle Law Boutique is ready to provide innovative guidance and support on all legal and fiscal aspects related to crypto-assets.
Mirjan Gjoni
Senior Associate
