This thesis examines three distinct topics on settlement microstructure and market efficiency in both DeFi and TradFi. Chapter one introduces the thesis’ unifying lens, arguing that settlement microstructure drives market efficiency across these markets. It links the three papers by showing how access in Bitcoin private channels, timing in Ethereum intertemporal gas hedging, and composition in equity market retail participation jointly determine fees, latency, liquidity, and price discovery, while previewing the policy framework that renders these mechanisms legible, bounded, and measurable. Chapter two, based on the working paper “Private Settlement in Blockchain Systems” with Dr. Alfred Lehar, provides evidence that the settlement market in blockchain systems is not purely transactional and diverges from the predictions of a simple competitive auction model. Using data from the Bitcoin blockchain, we find that 5.88% of transactions, labeled as private, bypass the competitive auction and are routed directly to miners. Despite being more active than the average user, these transactions are consistently confirmed by a single miner, a statistically unlikely outcome in a competitive environment. Our findings suggest that high-demand users form long-term agreements with miners, paying, on average, 20% lower fees. This chapter also documents how such settlement contracts are structured and operate within an unregulated market. Chapter three, based on the working paper “Gas Tokens: Market for Future Settlement in the Ethereum Blockchain” with Dr. Alfred Lehar, examines the implications of gas tokens as a potential market for future settlement within the Ethereum network. We show that sophisticated and frequent users are more engaged in gas token markets, pre-purchasing tokens to hedge against fluctuations in gas prices and paying, on average, 15.25% lower settlement fees. Moreover, bots actively pursue arbitrage opportunities in gas token markets and hold substantial volumes. Our findings indicate that traded gas token prices have strong predictive power for future gas prices. This research contributes to the development of modern financial instruments for price discovery and hedging within the Ethereum network as a two-sided market. We also empirically analyze the implementation of the Ethereum Improvement Proposal EIP-1559 as a natural experiment. Chapter four, based on my working paper “Silencing the Noise: Amplified Effects, A Causal Study on Price Efficiency”, investigates the causal effects of noise trader removal on market liquidity. In September 2022, an unexpected internet disruption in Iran restricted noise traders while informed traders retained access through brokers. This disruption led to a 6.65-fold increase in the bid-ask spread and a 46.8% decrease in informed trade speed due to market access asymmetry. Social media censorship in affected regions further amplified information asymmetry, resulting in a 7.2% price impact. Using a five-year analysis of political unrest, this study disentangles the effects of unrest and internet disruption on noise trading activity. The findings reveal that political unrest increases regional noise trading activity, whereas internet disruption decreases it. When both unrest and internet disruption occur simultaneously, regional noise trading activity decreases by 23.5%. This paper provides novel insights into market microstructure and the dynamics of liquidity provision through noise trading in emerging markets.
This Research paper attempts to examine and analyse the legal nature and law which govern virtual property, covering the concept of ownership, transfer, and regulatory challenges within the metaverse. This Research paper aims to set-out the struggles of traditional legal framework to adapt to the new digital environment consisting of technologies such as blockchain, artificial intelligence (AI), augmented and virtual reality (AR/VR), 3D modelling, and edge computing converge to form the metaverse. The study explains blockchain technology, as it reinforces non-fungible tokens (NFTs) which is the key standard for virtual ownership. It also attempts to analyse how existing legal framework in India for property laws, such as the Transfer of Property Act 1882[1] and the Sale of Goods Act 1930[2], could bring virtual assets under its legal parameters. A comparative analysis of the UK, US, EU, and Indian legal frameworks shows how different legal approaches helps in classification of digital assets. The UK Law Commission’s recommendation demonstrates a progressive shift toward recognising virtual property rights by introducing a new category of “digital objects”.[3] The Research paper highlights the inadequacy of existing property laws for resolving the exclusive cross-jurisdictional and ownership challenges posed by digital environments, concluding that just providing conceptual foundation is not enough. It advocates for a harmonised global governance framework integrating statutory law, soft law principles like the UNIDROIT Principles of International Commercial Contracts[4], and platform-specific regulation to ensure certainty, accountability, and protection of digital ownership.
This paper examines the legal status of Decentralized Autonomous Organizations (DAOs) within Macau's legal framework, with particular emphasis on the potential analogical application of Article 174 of the Commercial Code. Despite the absence of specific provisions addressing these novel blockchain-based entities, this research demonstrates that Macau's existing legal infrastructure possesses sufficient flexibility to accommodate DAOs through interpretive mechanisms. By analyzing the theoretical foundations of legal personhood, the distinctive characteristics of DAOs, and the underlying principles of Macau's commercial law system, this study proposes a viable pathway for recognizing DAOs as legitimate legal entities. The research reveals that while Article 174 was not originally conceived to address blockchain-based organizations, its purposive interpretation and analogical application could provide a provisional legal foundation for DAOs, pending more specific legislative developments. This approach not only addresses immediate practical concerns regarding the legal status of DAOs but also contributes to the broader discourse on legal adaptation to technological innovation in the commercial sphere.
Finance, supply chain, and decentralized applications are some of the industries that have undergone a revolution in relation to blockchain technology, and smart contracts are at the center of this revolution. Smart contracts are computer protocols that are programmed on blockchain systems and which allow transparency, immutability, and decentralization. Nonetheless, governance in a blockchain is a problem area, because the conventional centralized systems are inconsistent with its decentralised characteristic. This article discusses self-governance of blockchain whereby decision making is computerized using smart contracts to achieve decentralized regulations. It reviews the prevailing conditions in blockchain governance, issues and the way smart contracts would enhance transparency, efficiency and security. Also provided in the study are the advantages and drawbacks of decentralized governance, which includes issues of scalability and security, and the möbius strip connection between autonomous governance and blockchain platforms. Moreover, it assesses the place of decentralized autonomous organizations (DAOs) in blockchain governance and the issues of their implementation.
The integration of smart contracts and artificial intelligence (AI) into family law represents a major advancement in the digital transformation of legal procedures for marriage contracts. The blockchain technology enables smart contracts to function autonomously as self-executing agreements that deliver benefits through automated processes and transparent systems, and secure transactions. AI integration with these agreements enables real-time adjustments through adaptability because it allows automatic changes based on financial, legal, or personal circumstances. The implementation of family law through these agreements creates essential legal problems regarding their enforceability and jurisdictional differences, and their ability to handle marital relationship dynamics. The paper studies the basis of smart contracts alongside their potential AI-enhanced adaptability and automation capabilities. It also studies the Serbian marriage contract legal regulation. The research investigates the legal obstacles and jurisdictional problems that emerge when these technologies are used in family law by making comparisons with other civil law jurisdictions. The article also evaluates important ethical issues related to algorithmic bias and privacy concerns before it concludes by analysing the advantages and disadvantages of AI-enhanced smart contracts for marriage contracts in Serbia.
Blockchain-based smart contracts have garnered significant attention due to their potential to automate and enforce agreements in a decentralized and transparent manner. This abstract provides an overview of the implementation and security considerations associated with blockchain-based smart contracts. Smart contracts are self-executing contracts with predefined rules encoded on a blockchain, enabling automated and tamper-proof execution of contractual agreements. The implementation of smart contracts involves writing code in programming languages such as Solidity and deploying them on blockchain platforms such as Ethereum. However, the adoption of smart contracts introduces various security challenges, including vulnerabilities in the code, malicious actors, and regulatory compliance issues. This abstract discusses key security considerations for smart contracts, such as code auditing, formal verification, secure coding practices, and regulatory compliance. Additionally, it explores emerging trends and techniques for enhancing the security and resilience of blockchain-based smart contracts. By addressing these security considerations, blockchain-based smart contracts can realize their potential to revolutionize industries by enabling trustless and efficient execution of agreements while maintaining the integrity and confidentiality of transactions.
Public Prosecution Office at the Egyptian Court of Cassation, Mohammed Abdelnabi, Yassin Abdalla Abdelkarim, Sohag Primary Court
The prevalence of digital technologies in contemporary human interactions has elevated the role of digital means in contractual relations among society members, prompting renewed attention to smart contracts as automated, code-based legal instruments. This study examines the nature, structure, and operational mechanisms of smart contracts, comparing them to traditional contract theory under the Egyptian Civil Code (Law No. 131/1948). Smart contracts create binding obligations through software-based processes that rely on encryption, offering efficiency but also posing technical and doctrinal challenges. The paper investigates whether the Egyptian legal framework can adequately address issues such as consent, validity, termination, and dispute resolution in digital contracts. By analyzing smart-contract characteristics through the lens of Egyptian civil-law principles, the study seeks to clarify how existing doctrines may be adapted to accommodate emerging technologies. It ultimately proposes a jurisprudential foundation for integrating smart contracts into Egyptian law, ensuring legal certainty and coherence with established contractual norms. __________ CONTRATOS INTELIGENTES BAJO EL DERECHO CIVIL EGIPCIO: ESTRUCTURA Y TERMINACIÓN La prevalencia de las tecnologías digitales en las interacciones humanas contemporáneas ha elevado el papel de los medios digitales en las relaciones contractuales entre los miembros de la sociedad, impulsando una renovada atención a los contratos inteligentes como instrumentos legales automatizados basados en código. Este estudio examina la naturaleza, la estructura y los mecanismos operativos de los contratos inteligentes, comparándolos con la teoría contractual tradicional del Código Civil egipcio (Ley n.º 131/1948). Los contratos inteligentes crean obligaciones vinculantes mediante procesos basados en software que se basan en el cifrado, lo que ofrece eficiencia, pero también plantea desafíos técnicos y doctrinales. El documento investiga si el marco legal egipcio puede abordar adecuadamente cuestiones como el consentimiento, la validez, la rescisión y la resolución de disputas en los contratos digitales. Al analizar las características de los contratos inteligentes a través de los principios del derecho civil egipcio, el estudio busca aclarar cómo las doctrinas existentes pueden adaptarse para dar cabida a las tecnologías emergentes. En última instancia, propone una base jurisprudencial para la integración de los contratos inteligentes en el derecho egipcio, garantizando la seguridad jurídica y la coherencia con las normas contractuales establecidas. __________ 埃及民法下的智能合约：结构与终止 数字技术在当代人际互动中的普及提升了数字手段在社会成员间契约关系中的作用，促使人们重新关注智能合约这种自动化、基于代码的法律工具。本研究考察了智能合约的性质、结构和运行机制，并将其与埃及民法典（1948年第131号法律）下的传统合同理论进行比较。智能合约通过基于软件的加密流程产生具有约束力的义务，这在提高效率的同时，也带来了技术和法理上的挑战。本文探讨了埃及法律框架是否能够充分解决数字合约中的同意、有效性、终止和争议解决等问题。通过运用埃及民法原则分析智能合约的特征，本研究旨在阐明如何调整现有法律原则以适应新兴技术。最终，本研究提出了将智能合约纳入埃及法律的法理基础，以确保法律确定性并与既定的合同规范保持一致。
Cryptocurrencies are often portrayed as volatile, lightly regulated, or tools for illicit activity. This view overlooks a deeper innovation: the Crypto-Body, a self-sustaining digital ledger system that is essentially a programmable and consensus-governed architecture for recording and automating diverse data and functions. Beyond serving as a store of value or payment rail, a Crypto-Body operates as a programmable institutional substrate whose rules are guaranteed by cryptographic verification. It validates data and transactions, allocates value and credit, enables exchange of verifiable digital assets, and coordinates these activities via energy and computation across individuals, firms, governments, and organizations; all while preserving anonymity and user privacy through pseudonymous identifiers and selective disclosure (e.g., zero-knowledge proofs), and still permitting auditability and legal compliance where required.
Abstract In this chapter, we develop the concept of ‘regulatory equivalence’. As opposed to functional equivalence, used to extend the scope of existing legal frameworks to new technological arrangements, regulatory equivalence refers to the use of technological guarantees to serve the same purpose as traditional legal formalities. This approach goes beyond the use of technology to execute certain legal formalities, but involves analysis of the equivalence between the values undergirding legal rules and the affordances of technological artifacts. This chapter draws on the distinct properties of blockchain-based systems, such as notarization systems, Decentralized Autonomous Organization (DAO)s, and privacy pools, to demonstrate the opportunities and challenges they present to establishing regulatory equivalence. Public actors, however, are hesitant to recognize regulatory equivalence, due to competing perceptions of legitimate governance between participants within these systems and external actors such as regulators. We explore this tension before concluding that this challenge can be overcome through co-regulatory engagement between public authorities and actors within blockchain-based systems, and public authorities more explicitly stating the values they seek to promote within blockchain-based systems.
Abstract The central argument in this article is that the legal recognition of cryptocurrency as a distinct form of property directly influences, and is in turn influenced by, its capacity to function as a medium of exchange. Legal scholarship often treats these topics in isolation. The analysis examines the conceptual and juridical foundations of cryptocurrency through the dual prisms of property and money, arguing that the legitimacy of cryptocurrency in economic and legal systems depends on its status as an object of ownership. It contends that the use of cryptocurrency as money cannot be separated from its proprietary character, as the ability to hold, transfer, and exclude others forms the basis upon which trust, exchange, and value are established. The discussion advances the view that cryptocurrency represents a novel category of intangible asset whose ownership must be understood within established principles of personal property while accommodating its decentralised, non-sovereign nature. The article further contends that cryptocurrency as a form of property enables it to fulfil specific monetary roles as a store of value and medium of exchange, thereby bringing personal property and money into a single analytical frame.
Abstract This article examines the legal challenges of regulating Decentralized Autonomous Organizations (DAOs) within financial markets, particularly those offering decentralized financial (DeFi) services. After classifying DAO in Social DAO, Investment DAO and Protocol DAO, it discusses the ambiguous legal status of DAOs, their decentralized and autonomous governance structure, and the obstacles these pose to traditional regulatory frameworks. DAOs are typically governed by smart contracts and operate on blockchain, complicating regulatory enforcement due to their decentralized, non-hierarchical structure. Additionally, the integration of artificial intelligence (AI) in DAOs introduces further complexities regarding accountability and liability, as AI lacks legal personhood. The paper reports innovative regulatory approaches, including “embedded supervision”, which integrates monitoring mechanisms within DAO operations, and “polycentric co-regulation”, which involves collaborative regulatory input from industry stakeholders. Ultimately, it suggests that Protocol DAOs might be more suitably considered as “infrastructural assets” rather than traditional business entities, encouraging voluntary compliance and adapting standards to their unique, decentralized nature.
Abstract Smart contracts are designed to be self-executing and self-enforcing. They are written as computer code that can automatically monitor, execute and enforce the performance of the agreed terms. The code of smart contracts exists across a distributed, decentralised blockchain network, controlling the execution and making transactions trackable and irreversible. This article examines the extent to which the Australian Consumer Law unfair contract term provisions can respond to the use of smart contracts. The article finds that the Australian Consumer Law unfair contract term provisions work relatively well to protect smart contract consumers. While some challenges exist and should be properly considered, there seems to be no need to either create entirely new law, modify the existing regime or totally ban smart contracts to protect consumers against unfair contract terms in smart consumer contracts.
In this paper, a model is presented in the operational form of blockchain and smart contract utilization to modernise insurance claims settlement, which is enterprise-ready. Design a permissioned, Ethereum-compatible ledger that encodes policy terms limits, deductibles, exclusions and orchestrates deterministic claim state transitions from First Notice of Loss (FNOL) to payout. Off-chain storage stores sensitive artifacts (PII/PHI, images, medical records) encrypted in vaults, and on-chain records append cryptographic digests and events that can be audited by tampering evidence. This is provided by evidence (in the form of signed oracles, such as weather indices, hospital discharge summaries, police reports), and permits parametric claims to be settled quickly and routine indemnity claims to undergo high straight-through processing (STP) with human attention reserved to exceptions. The methodology emphasizes formal assurance (static analysis, property-based tests, optional formal verification), runtime safety (circuit breakers, timelocked upgrades), and robust key/oracle governance. Pilot testing in pilot testing, the methodology provides a shorter cycle time, less reconciliation, and quantifiable mitigation of fraud-leakage but still ensures regulatory compliance by selective disclosure and privacy-by-design. Also work through the dynamics of constraints throughput and fee dynamics, legal enforceability, legacy interoperability, and privacy-versus-transparency trade-off and a roadmap of staged adoption, starting with low-dispute, oracle-rich products, then triage, partial advances, and subrogation workflows. Findings indicate that blockchain is likely to be the most useful as a coordination/assurance layer to supplement, but not to substitute, fundamental insurance infrastructure
Blockchain technology has rapidly evolved from a financial innovation underpinning cryptocurrencies into a foundational infrastructure for secure digital transactions, smart contracts, and decentralized identity management. Its distributed ledger architecture offers transparency, immutability, and efficiency, yet it simultaneously challenges traditional legal and regulatory frameworks governing contractual enforcement, data protection, and cross-border commerce. This paper provides a comprehensive assessment of the legal and regulatory implications of blockchain technology, focusing on its transformative impact on smart contracts, digital identity systems, and international financial transactions. From a global perspective, it examines how jurisdictions across the European Union, the United States, and Asia are addressing issues such as contractual validity, jurisdictional enforcement, and liability allocation in decentralized networks. The study explores how smart contracts self-executing agreements encoded on blockchain redefine contractual obligations and dispute resolution mechanisms while raising questions about consent, interpretation, and legal recognition under existing civil and commercial laws. Similarly, the emergence of blockchain-based digital identities introduces opportunities for enhanced data sovereignty and privacy protection but also exposes gaps in governance, authentication, and cross-border data portability. In the context of cross-border transactions, the paper analyzes how blockchain’s borderless nature disrupts conventional regulatory oversight and compliance regimes, including anti-money laundering (AML) and know-your-customer (KYC) frameworks. By comparing legislative developments and regulatory experiments worldwide, the research identifies best practices and systemic risks associated with blockchain adoption. Ultimately, the paper proposes a harmonized legal and policy approach that balances innovation with accountability, fostering trust and interoperability in the evolving digital economy.
S ubrzanim razvojem tehnologije i informatike u 21. stoljeću dolaze velike promjene u načinu ljudskog življenja i djelovanja. Svakodnevni život postaje sve brži i dinamičniji zbog razvoja računala i interneta, a ljudi objeručke prihvaćaju nove tehnologije i pokušavaju ih maksimalno implementirati u svakodnevni život. Decentralizirane autonomne organizacije (dalje DAO) su računalni programi bazirani na blockchainu koji omogućuju sudionicima da kroz predlaganje i glasanje o odlukama koje dođu na dnevni red odlučuju o načinu korištenja resursa organizacije (upravljanje community walletom) te samim time upravljaju s budućnosti organizacije. Koliko koji član ima prava glasa u DAO-u ovisi o količini upravljačkih (governance) tokena koje posjeduje. Ovaj način određivanja količine prava glasa donekle podsjeća na ustroj u dioničkom društvu, no zbog nedostatne pravne regulacije DAO-a i nedostatka mogučnosti inkorporacije kao društva kapitala zakonodavac u Hrvatskoj i svijetu ima tendenciju DAOe smatrati ortaštvom u slučaju spora. Podvođenje DAO-a pod definiciju ortaštva može biti naročito opasno za članove jer ne uživaju zaštitu zida pravne osobnosti . U svom radu obradio sam pravni status DAO-a, osnivanje DAO-a i sudjelovanje članova u DAO-ima, a ponajprije su objašnjeni termini kao što su decentralized finance (DeFi), blockchain i pametni ugovori.
The article discusses about the smart contract, its concept and legal nature, as well as the place of smart contracts in the Technology Law, which means a discussion on the important issues covered by this topic. At the same time, smart contracts are com- pared to the usual standard contract, where their pros and cons are discussed. The importance and necessity of both types of contracts in relation to the current reality will also be discussed. At the same time, the article discusses about the revolutions – from where they begin and how long the world has passed before today's reality, why blockchain is considered as the fourth-generation revolution and how important it is to develop and implement it. The article also discusses about the types of contracts, which means how a standard contract can be divided, in the other words, we talk about consensual and real contracts. The definitions of each of them and their need related to the smart contracts are analyzed in the article. Therefore, we use the relevant chapters and articles of civil law to be able to explain what is meant and to what extent it is possible to follow the same norms in the case of the smart contract.
Smart contracts, originally introduced in the 1990s by Nick Szabo, have gained prominence with the rise of blockchain technology, and with the latest developments in algorithmic contracting. Their impact on contract law is evident, and therefore this paper analyzes from the English contract law perspective their formation phase in order to become legally enforceable. In addition, the analysis is carried out separately with respect to smart contracts whose formation phase is prior to their translation into code, from those in which algorithms are involved in the contract formation phase, which presents greater complexities. The purpose of this paper is to highlight the challenges presented by the legal framework of smart contracts in order to prepare the basis for future research on ways to address these concerns.