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A Leader in the Technology Law Field Tackles a New Frontier: Blockchain

For Aaron Wright, becoming one of the select few who understand the new technology of blockchain began when a self-described “working-class kid” from New Jersey going to school in Boston and Somerville, Massachusetts, took on programming jobs to pay the bills. An associate clinical professor of law, founder and director of the Tech Startup Clinic and co-director of the Cardozo Blockchain Project at the Benjamin N. Cardozo School of Law, Wright, who received his JD from Cardozo in 2005, is an expert in corporate and intellectual property law. He is primarily known for his work with the regulatory and financial issues raised by the use of blockchain, which he outlined in Blockchain and the Law: The Rule of Code, co-written in 2018 with Primavera De Filippi. Blockchain is a computerized ledger for storing transaction information about assets. The storage is done in a way that, at least theoretically, makes the information transparent and unhackable by distributing the information in “blocks” throughout a worldwide “chain” of computers. Thus, the name: blockchain. His interest in technology ran parallel to his interest in becoming a lawyer, and in 2006, he and three colleagues created ArmChairGM, a sports forum and wiki site. Later that same year, the company was sold to Wikia, the for-profit sister of Wikipedia, and Wright ran Wikia’s New York office, served as General Counsel and Vice President of Product and Business Development and helped build an open source search engine. In many ways, then, Wright’s career path has straddled both the law and how the law needs to be applied to the new technologies being developed. His work on blockchain comes out of that trajectory. “Cardozo’s work in this field,” said Wright, “exemplifies the kind of institution that Cardozo is. On the one hand, my work in this area, along with the work of my students, results in important scholarship being done because blockchain, by assigning property rights to the digital realm, raises critical legal questions about regulation, intellectual property, payment systems and contracts, to name a few areas.” However, while the scholarship is important, “of equal importance is helping people understand the nuts and bolts of how this new system works.” In 2017, Dean Melanie Leslie ’91C announced the formation of The Cardozo Blockchain Project, to be co-directed by Wright and Jeanne L. Schroeder, professor of law, with the express purpose of providing “practical training to students and lawyers about blockchain technology and how to develop blockchain-based legal agreements that rely on ‘smart contracts.’” Wright believes that blockchain has the potential to be more important than the internet itself because “what it does is add a memory to the internet.” This is important because, as it is currently constructed, the internet has no memory; that is, there is no way to assert ownership of any digital property because there is no mechanism to come to a common agreement, as one can do with a contract. “This means that, as currently configured, there are no property rights on the internet.” Blockchain technology will turn that around. In Wright’s “50-year view,” once the technical limitations of blockchain are overcome and the regulatory issues are hashed out, “new business models and marketplaces will emerge based on the foundation of the blockchain’s capacity for ‘memory.’ In the 1990s, we couldn’t do online banking; now, it’s part of our lives. The same thing will happen with these technologies.”