Arizona arises as a hub for startups by enforcing smart contracts
In March of 2017, Arizona passed a law that enforces the digital signatures recorded on a blockchain, which attracted blockchain companies that develop applications based on this technology.
The Arizona Electronic Transactions Act, which stipulated that signatures, for their mere electronic format, cannot be denied legal effect and enforceability, was amended to contain digital signatures recorded on a blockchain. This enables parties to seek legal actions in the state’s court system, in case of dispute or breach of smart contract.
As a result, Sweetbridge, which is building a blockchain alliance to launch projects in industry ecosystems, starting with protocols for commerce, supply chains and interest-free loans, got the legal clarity it needed in order to further carry it out its operations.
This change majorly affects blockchain-based supply chain startups, as the transactions they undertake with various entities are governed by contracts. If the enforceability and acceptance of those contracts in a court of law are put into question, the entire relationship is jeopardized.