Sign up and get paid for class action lawsuits easily

If there is an industry rife with high payment fees and cooperative problems, it is the class action lawsuit business. With around $6B in payouts each year in the US, it’s a lucrative, early market for smart contracts to emerge.

Technology: A blockchain allows for a self executing contract. This in turn can automate payouts based on the proportion of harm. For example, if an energy drink company were to sell its drink with 40mg of caffeine versus 80mg, a purchaser of that energy drink would be eligible to compensation, which would be determined by the number of energy drinks purchased (up to a limit). A smart contract could be coded to automated this payout system.

Why blockchain is better: Most payments are made through the mail which has a high cost. Payments under $.10 are often not even fulfilled due in many cases. People often move, which stops checks from being cashed. In one case, nearly ⅓ of the funds from a $100M lawsuit were unclaimed.

Value Prop: Blockchain can decrease transaction costs of current payment systems while creating cryptographic proof that the payments were made. It can automate the distribution of compensation based off harm.

Why it’s important: Smart contracts will be the basis of future agreements and will slowly infiltrate nations’ legal system. Startups that build a trusted solution in the courts could quickly gain validity and traction.

Introduced by Brian Bordley , brian (AT) skydeck.vc