Blockchain and smart contracts : is this the future for notarial practices in Malta?

Abstract

The Notarial profession has existed for many years, evolving through numerous developments aimed at enhancing its practices. However, despite these advancements, the notarial profession has not significantly embraced major technological innovations in its day-to-day tasks. As guardians of the public trust, notaries play a crucial role in securing transactions and fulfilling specific legal requirements. Yet, some would argue that some features of the notarial system are becoming somewhat outdated, prompting the need for technological integration. Blockchain technology and smart contracts present promising solutions for modernising and enhancing the existing notarial system on a national level. This professional report explores the potential integration of blockchain technology particularly, smart contracts into the notarial profession, examining how these innovations can benefit both current and future notaries. By demonstrating the synergy between blockchain and legal practices, I aim to illustrate a cooperative approach rather than a competitive one. Technology should not be seen as a threat but as a valuable ally that can streamline and enhance our daily tasks without replacing the core essence of our profession. The idea that legal systems could one day be replaced by technology is unsettling. Given the rich history that our notarial profession holds, it is crucial to maintain the human element that has been its cornerstone for centuries. This report seeks to show how blockchain can be used to facilitate our work as notaries, ensuring that technological advancements serve as tools to enhance our profession rather than replace it. By embracing these innovations, we can preserve the legacy of our ancestors while adapting to the demands of the digital age. Thus, such technological advancements are both inevitable and essential. One such innovation that holds the promise of reshaping various sectors is blockchain technology. Blockchain has evolved to offer a secure, decentralized, and transparent method for recording transactions and data. A key derivative of this technology is the smart contract, which automates and enforces the terms of agreements without the need for intermediaries. In Malta, a country known for its progressive stance on blockchain adoption, the integration of blockchain and smart contracts into notarial practices presents an intriguing possibility. By examining the current state of notarial practices in Malta, the inherent advantages of blockchain and smart contracts, and the regulatory landscape, this paper explores the feasibility, benefits, and challenges of implementing blockchain and smart contracts in Maltese notarial services, assessing whether or not this technological fusion could represent the future of this profession. In this report, a thorough and critical analysis will be conducted to assess the feasibility of integrating blockchain technology and smart contracts into the daily tasks of notaries. This shift is far from straightforward and carries potential repercussions that must be carefully considered. The study aims to identify the most suitable features of these technological advancements that could be incorporated into our notarial profession. Given that Maltese law currently lacks regulation in the realm of digital assets for notaries, the research will include a comparative analysis of other legal systems to develop informed proposals for Maltese legislation. By examining how similar issues are addressed in different jurisdictions, this international perspective will provide a deeper understanding of the Maltese legal framework and help formulate practical recommendations for the successful integration of these innovations.