AUSTRALIAN GOVT PARTNERS WITH IBM AND LEGAL EXPERTS TO BUILD SMART CONTRACTS PLATFORM

Last updated: June 19, 2025, 23:02 | Written by: Barry Silbert

Imagine a world where legal agreements are executed automatically, securely, and transparently, reducing delays and disputes. Herbert Smith Freehills has joined forces with CSIRO s Data61 and IBM to build Australia s first cross-industry, large-scale, digital platform enabling Australian businesses to utilise the IBM blockchain platform and implement blockchain-based smart legal contracts.This vision is rapidly becoming a reality in Australia, thanks to a groundbreaking partnership. Build on the foundation of leading decentralized networks to create your own blockchain ecosystem to share data with trusted supply chain partners using IBM Blockchain Transparent Supply. Transact faster with an immutable, shared ledger that gives you end-to-end and real-time visibility.The Australian government, through its scientific research arm CSIRO's Data61, has joined forces with tech giant IBM and leading law firm Herbert Smith Freehills (HSF) to develop a national smart contracts platform. IBM Cloud for Government is a FedRamp High IaaS environment where you can run any of IBM s on-premises licensed software. With Turbonomic you can even manage your other CSP environments all from a single pane of glass: Login ( link resides outside ibm.com) Business Automation Data FabricThis initiative, known as the Australian National Blockchain (ANB), promises to revolutionize how Australian businesses manage and interact with legal contracts.It leverages IBM's blockchain platform to create a secure and immutable ledger for legal agreements, enabling businesses to digitize contracts, exchange data related to those contracts, and automate key processes. オーストラリア科学産業研究機関（CSIRO）とIBM、法律事務所のハーバート・スミス・フリーヒルズは、企業間の契約を効率的に履行することなどを目的としてブロックチェーンを基盤にしたスマートコントラクトのプラットフォームを共同で構築する。This ambitious project signals a significant step towards a more efficient and digitally-driven Australian economy, promising to streamline legal operations, reduce costs, and foster greater trust in business transactions.The pilot program is expected to commence before the end of 2025, inviting local regulators, banks, law firms, and businesses to participate in shaping the future of legal contracting in Australia. It is a smart and safe way to handle contracts thanks to permission-based access among parties in the network. The platform s contracts, known as smart legal contracts, will contain clauses that will automate procedures when predefined conditions are met. Moreover, the contracts will also be able to interact with external data.This innovative platform is poised to be a game-changer, transforming the legal landscape and boosting economic growth.

The Australian National Blockchain (ANB): A New Era for Legal Contracts

The Australian National Blockchain (ANB) represents a significant leap forward in Australia's digital infrastructure.This cross-industry platform is designed to enable businesses nationwide to utilize digitized contracts, exchange pertinent data, and confirm the authenticity and current status of legal agreements securely.By leveraging blockchain technology, the ANB aims to bring unparalleled transparency and efficiency to the traditionally complex world of legal contracts.

What Problems Does the ANB Solve?

Traditional legal contracts often involve:

Complex paperwork and manual processes.
Time-consuming negotiations and approvals.
Potential for errors and disputes.
Lack of transparency and real-time visibility.
High administrative costs.

The ANB directly addresses these challenges by providing a digital, automated, and transparent platform for managing legal contracts.This transformation can lead to significant cost savings, reduced processing times, and improved accuracy.

The Core Functionality of the ANB

The ANB platform's functionality can be broken down into several key areas:

Digitization of Legal Contracts: Converting traditional paper-based contracts into digital formats, enabling seamless storage and access.
Secure Data Exchange: Facilitating the secure exchange of data related to contract terms and conditions among authorized parties.
Smart Legal Contracts: Implementing self-executing contracts with clauses that automate procedures when pre-defined conditions are met.
Verification and Authentication: Providing a mechanism to verify the authenticity and current status of legal contracts, ensuring trust and preventing fraud.
Permission-Based Access: Controlling access to contracts and data based on predefined roles and permissions, ensuring confidentiality and compliance.

The Powerhouse Partnership: IBM, CSIRO Data61, and Herbert Smith Freehills

The success of the ANB hinges on the combined expertise of its three key partners: IBM, CSIRO's Data61, and Herbert Smith Freehills.

IBM's Role: Enterprise-Grade Blockchain Technology

IBM brings its proven IBM Blockchain Platform to the table. IBM, die Anwaltskanzlei Herbert Smith Freehills und Data61 von der CSIRO haben sich zu einem neuen australischen Konsortium zusammengeschlossen, um eine Smart-Contracts-Plattform f r Unternehmen zu entwickeln.This enterprise-ready platform offers a secure and scalable infrastructure for building and deploying blockchain solutions.IBM’s platform is available as a software-as-a-service offering on the IBM Cloud or as software deployable on any Kubernetes cluster.IBM’s expertise ensures the ANB can handle the complex requirements of a national-scale platform.

The IBM Blockchain Platform provides the necessary tools for:

Developing and deploying smart contracts.
Managing the blockchain network and its participants.
Ensuring the security and integrity of the data.
Integrating with existing enterprise systems.

Furthermore, IBM's experience in cybersecurity offers crucial protection, especially with its comprehensive security services designed to guard against vulnerabilities and fortify digital defenses.

CSIRO's Data61: Research and Development Expertise

CSIRO's Data61, Australia's leading scientific research body, contributes its deep expertise in blockchain technology, data science, and cybersecurity.Data61's involvement ensures the ANB is built on a solid foundation of research and innovation.

Data61's contributions include:

Conducting research on the potential applications of blockchain technology in the legal sector.
Developing innovative smart contract designs.
Ensuring the platform is secure and resilient.
Advising on the technical architecture and implementation of the ANB.

Data61's role is crucial in translating cutting-edge research into practical solutions that address real-world challenges.

Herbert Smith Freehills: Legal and Regulatory Expertise

Herbert Smith Freehills (HSF), a leading global law firm, provides critical legal and regulatory expertise to the ANB project.HSF ensures that the platform complies with all applicable laws and regulations and that the smart contracts are legally sound and enforceable.

HSF's contributions include:

Advising on the legal and regulatory implications of using blockchain technology in the legal sector.
Drafting and reviewing smart contract templates.
Ensuring the platform complies with data privacy laws.
Providing legal support to businesses using the ANB.

HSF's legal expertise is essential for ensuring the ANB is a trusted and reliable platform for managing legal contracts.

Understanding Smart Contracts and Blockchain Technology

To fully appreciate the potential of the ANB, it's essential to understand the underlying technologies: smart contracts and blockchain.

What are Smart Contracts?

A smart contract is a self-executing contract written in code and stored on a blockchain.It automatically enforces the terms of an agreement when predefined conditions are met. Global law firm Herbert Smith Freehills (HSF), IBM and tech network Data61 have formed a consortium to build the Australian National Blockchain (ANB) the country s first cross-industry, large-scale, blockchain platform to enable businesses to make use of smart contracts. IBM told Artificial Lawyer that this is just the first stage in aIn essence, it turns business logic into an executable program that all members of the blockchain network agree on and verify.

Think of a smart contract as a digital vending machine. The highly strategic whole-of-government service agreement will enable the $450 billion big Australian public sector access to IBM s technology platform. IBM is a heavyweight in the enterprise space, in particular in financial services, and already has major agreements with Canberra s digital giants, Human Services, the ATO, Home AffairsYou insert the correct amount of money (meet the conditions), and the machine automatically dispenses the product (executes the contract). You can also import an existing smart contract package into the IBM Blockchain Platform pane: In the Smart Contracts pane, click the overflow menu and select Import a Package. Browse to the smart contract package that you want to import, and click Import. You can also click Delete Package to remove the smart contract package from the list ofThere's no need for a middleman or manual intervention.

How Does Blockchain Technology Work?

Blockchain is a distributed, immutable ledger that records transactions in a secure and transparent manner. IBM's enterprise-ready platform: The IBM Blockchain Platform. The IBM Blockchain Platform is a blockchain offered in two ways: either software-as-a-service offering on the IBM Cloud or via software to be deployed on any Kuberenetes cluster v1.17 or higher. It's the only fully integrated, enterprise-ready blockchain platform that's designed toEach transaction is grouped into a ""block,"" which is then linked to the previous block, creating a ""chain."" This chain is replicated across multiple computers, making it extremely difficult to tamper with the data.

Key characteristics of blockchain technology include:

Decentralization: Data is distributed across multiple computers, eliminating a single point of failure.
Immutability: Once a transaction is recorded on the blockchain, it cannot be altered or deleted.
Transparency: All participants in the network can view the transactions recorded on the blockchain.
Security: Cryptographic techniques are used to secure the data and prevent unauthorized access.

The Benefits of Using the Australian National Blockchain

The Australian National Blockchain (ANB) offers a wide range of benefits for businesses, government agencies, and the Australian economy as a whole.

Increased Efficiency and Reduced Costs

By automating contract management processes, the ANB can significantly reduce administrative costs and processing times. Smart contracts eliminate the need for manual intervention, reducing errors and delays. Inicialmente, o conceito ser testado como um piloto usando a solu o blockchain da IBM, e o cons rcio diz que planeja convidar reguladores locais, bancos, escrit rios de advocacia e empresas para participar do piloto, que deve come ar antes do final de 2025. Paul Hutchison, da IBM Global Business Services, deu sua opini o de que:Businesses can save time and money by streamlining their legal operations.

Examples of cost savings include:

Reduced paperwork and storage costs.
Lower legal fees due to automated contract execution.
Faster dispute resolution.
Increased productivity of legal staff.

Improved Transparency and Trust

The blockchain provides a transparent and immutable record of all transactions, fostering greater trust among parties.All participants in the network can view the transactions recorded on the blockchain, reducing the potential for fraud and disputes. The computer manufacturing company, IBM, law firm Herbert Smith Freehills and the Australian government s scientific research department are set to trial a national smart-contract platform which is based on IBM s blockchain, Cryptovest reports.This increased transparency builds confidence and strengthens business relationships.

Enhanced Security and Data Protection

The ANB leverages the security features of blockchain technology to protect sensitive data.Cryptographic techniques are used to secure the data and prevent unauthorized access. Herbert Smith Freehills, CSIRO s Data61, and IBM have formed a consortium to build Australia s first cross-industry, large-scale, digital platform to enable Australian businesses to collaborate using the IBM Blockchain Platform and blockchain-based smart legal contracts.Permission-based access controls ensure that only authorized parties can access specific contracts and data.

Faster and More Efficient Dispute Resolution

Smart contracts can help to prevent disputes by clearly defining the terms of an agreement and automating its execution. CSIRO's Data61 has partnered with law firm Herbert Smith Freehills and tech giant IBM to build a blockchain-based smart legal contracts network. Blockchain has the potential to rewrite theIn the event of a dispute, the blockchain provides an immutable record of all transactions, making it easier to resolve the issue quickly and fairly. IBM Cybersecurity Services is a trusted partner, delivering advisory, integration and managed security services, to offensive and defensive capabilities, we combine a global team of experts with proprietary and partner technology to co-create tailored security programs to provide vulnerability management and transform security into a businessThe transparent nature of the blockchain also assists in swift and accurate auditing processes.

Stimulating Innovation and Economic Growth

The ANB has the potential to stimulate innovation and economic growth by creating a more efficient and transparent legal environment. IBM, CSIRO s Data61 and law firm Herbert Smith Freehills have partnered on a new Australian consortium to build a cross-industry blockchain -based smart contracts platform for enterprisesBy reducing the costs and complexities of legal contracts, the ANB can encourage businesses to invest in new projects and expand their operations.This will foster a more dynamic and competitive Australian economy.

Potential Use Cases for the Australian National Blockchain

The applications of the ANB are vast and span across various industries.Here are a few potential use cases:

Supply Chain Management

The ANB can be used to track the movement of goods and materials throughout the supply chain, ensuring transparency and accountability. Smart contracts can automate payments and other processes, reducing delays and improving efficiency.Real-time visibility and immutability of data reduces fraud and ensures ethical sourcing.

Real Estate

The ANB can streamline the process of buying and selling property by digitizing land titles and automating title transfers.This can reduce the time and cost associated with real estate transactions and improve transparency.

Financial Services

The ANB can be used to automate various financial processes, such as loan origination, trade finance, and payments. Smart contracts can ensure that all parties comply with the terms of an agreement, reducing the risk of fraud and disputes.Automated compliance can also reduce operational costs significantly.

Government Services

The ANB can be used to improve the efficiency and transparency of government services, such as procurement, licensing, and record keeping.Digitizing government processes can reduce bureaucracy and improve citizen satisfaction.Secure and transparent record-keeping promotes accountability.

Intellectual Property Management

The ANB can be used to protect intellectual property rights by registering patents, trademarks, and copyrights on the blockchain. Known as DLT Co, the new platform will represent a significant new piece of infrastructure in Australia s digital economy, enabling companies nationwide to join the network to use digitised contracts, exchange data and confirm the authenticity and status of legal contracts.This can prevent counterfeiting and infringement and make it easier for creators to monetize their work.

Addressing Common Concerns and Challenges

While the ANB holds immense promise, it's important to address potential concerns and challenges.

Scalability

One of the key challenges is ensuring the ANB can scale to handle a large volume of transactions. Blockchain technology can be limited by its transaction processing speed.The consortium will need to carefully design the platform to ensure it can meet the demands of a national-scale implementation.

Data Privacy

Protecting data privacy is paramount.The ANB must comply with all applicable data privacy laws.Access controls and encryption must be implemented to ensure that sensitive data is only accessible to authorized parties.The design must ensure compliance with Australian privacy principles.

Regulatory Uncertainty

The legal and regulatory landscape surrounding blockchain technology is still evolving. The Australian National Blockchain will help create a new technology platform to securely and transparently manage legal agreements. Herbert Smith Freehills, CSIRO s Data61, and IBM have formed a consortium to build Australia s first cross-industry, large-scale, digital platform to enable Australian businesses to collaborate using the IBM Blockchain Platform and blockchain-based smartThe consortium will need to work closely with regulators to ensure the ANB complies with all applicable laws and regulations. Australian Gov t Partners With IBM and Legal Experts to Build Smart Contracts Platform localcryptobusiness comments sorted by Best Top New Controversial Q A Add a CommentThis involves staying abreast of new regulations and ensuring the platform adapts accordingly.

Interoperability

The ANB needs to be interoperable with other systems and platforms.This will require developing standards and protocols that enable different systems to communicate with each other seamlessly. Following its recent research on the pros and cons of blockchains, CSIRO s Data61 unit has formed a consortium with IBM and law firm Herbert Smith Freehills to commercialise smart contracts based on the concept.Seamless integration with existing systems is key to successful adoption.

Adoption and User Education

Successful adoption of the ANB will require educating businesses and government agencies about the benefits of blockchain technology and smart contracts.Training and support programs will need to be developed to help users get started with the platform.Clear communication and easy-to-use interfaces are crucial.

The Future of Legal Contracts in Australia

The Australian National Blockchain (ANB) represents a pivotal moment in the evolution of legal contracts in Australia.It paves the way for a more efficient, transparent, and secure future for businesses and government agencies alike. A smart contract is the code, packaged as chaincode, that applications interact with to read and update data on the blockchain ledger. A smart contract turns business logic into an executable program that is agreed to and verified by all members of a blockchain network.The platform is poised to revolutionize the way legal agreements are managed, offering significant cost savings, improved trust, and enhanced security.

What are Layer 1 and Layer 2 Platforms, and How Does the ANB Fit In?

In the blockchain ecosystem, Layer 1 (L1) platforms are base-layer blockchains like Ethereum, Solana, Cardano, and BNB Smart Chain, where smart contracts execute directly on the main platform. Layer 2 (L2) platforms, on the other hand, execute smart contracts on a separate, parallel space to enhance efficiency and speed, then roll up the changes to the core platform.

While the specific architecture of the ANB isn't detailed in the provided snippets, it's likely that IBM's Blockchain Platform provides a foundation for the ANB. Australian Gov t Partners With IBM and Legal Experts to Build Smart Contracts Platform IBM, CSIRO s Data61 and law firm Herbert Smith Freehills have partnered on a new Australian consortium to buildWhether it operates as a Layer 1 or a Layer 2 solution depends on how the smart contracts are executed and integrated with the underlying ledger.IBM's platform is designed for enterprise-level solutions and offers flexibility to adapt to various architectural needs.

Conclusion

The partnership between the Australian government, IBM, and Herbert Smith Freehills to build the Australian National Blockchain (ANB) is a significant step towards transforming the legal landscape in Australia. L1 platforms are blockchains on which smart contracts are executed directly on the main core platform. Prominent examples are Ethereum, Solana, Cardano and BNB Smart Chain. L2 platforms execute the smart contracts on a parallel space so they can run more efficiently and quickly; they then roll up changes to the core platform.By leveraging blockchain technology and smart contracts, the ANB promises to streamline legal operations, reduce costs, and foster greater trust in business transactions.While challenges remain, the potential benefits are substantial, positioning Australia as a leader in the adoption of innovative technologies for the legal sector. Australia s leading scientific research body is co-operating with law firm Herbert Smith Freehills and IBM to build a legal contracting blockchain platform called the Australian National Blockchain (ANB). The aim is for the ANB to enable businesses to digitize legal contracts and exchange data affecting those contracts.The pilot program, expected to begin before the end of 2025, marks the beginning of a new era for legal contracts in Australia. Developing smart contracts with IBM Blockchain Platform Developer Tools. Attention! The IBM Support for Hyperledger Fabric Extension for VS Code (VS Code extension) referenced throughout the documentation is an open-source project which is no longer active, and therefore not officially supported by IBM.Keep an eye on this project as it develops, as it may significantly impact your business operations.The key takeaways are:

The ANB is designed to make contract management more efficient and transparent.
It leverages blockchain technology and smart contracts for enhanced security and automation.
The partnership between government, technology, and legal experts is crucial for its success.
Adoption requires understanding blockchain and smart contract technology, which will bring Australia into the forefront of global adoption.

Are you ready to explore how the ANB can benefit your business?Start by researching blockchain technology and smart contracts, and consider how these technologies can be applied to your specific needs.Stay informed about the progress of the ANB and be prepared to participate in the pilot program when it becomes available.Contact IBM, CSIRO's Data61, or Herbert Smith Freehills to learn more about the project and how you can get involved.The future of legal contracts is here, and Australia is leading the way.