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.
Article Jan-Gero Alexander Hannemann LL.B./Dr. Robert Müller LL.M., Automatisierte Governance in der Ära der Blockchain-Technologie – Decentralized Autonomous Organizations (DAOs), Smart Contracts und KI im Einklang — Frankfurt/M. (dfv Mediengruppe) 2024, 289 S., 89 € was published on April 1, 2024 in the journal Computer und Recht (volume 40, issue 4).
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.
Conventional corporate governance frameworks have historically been characterized by centralization and hierarchical structures, marked by a clear separation of ownership and control. While this separation has its merits, it also presents inherent challenges. In pursuit of effective corporate governance, it is imperative to provide shareholders with a diverse array of tools and mechanisms, empowering them to actively monitor and shape corporate decision-making processes. General Meetings are essential in this regard, offering a crucial door for shareholders to exert influence over corporate decision-making. Nonetheless, the traditional model of General Meetings currently encounters various flaws related to transparency, verification, and shareholder identification, which are present in the voting process per se, in proxy voting, and in voting verification. In addition, economic burdens related to corporate monitoring imposed on shareholders are making this mechanism function sub-optimally. Recent developments in blockchain technology have attracted the attention of both legal academics and tech experts as a potential solution to these corporate governance challenges, as blockchain's decentralized, autonomous and tamper-proof transaction records promise enhanced transparency, accuracy, and cost-efficiency within corporate decision making in commercial companies. This dissertation will thus focus on assessing whether and how Portuguese commercial companies can leverage emerging blockchain applications such as Decentralized Autonomous Organizations (DAO) and Blockchain Enabled E-Voting (BEV) to address the specific issues associated with the traditional model of the General Meeting. For this purpose, it will suggest the creation of a hybrid corporate entity/body, based on the implementation of a DAO structure within a legally incorporated company and the use of BEV for corporate voting. It will conclude that, although legally possible and advantageous in theory, the deployment of these technologies in a corporate setting ought to still overcome various legal challenges and structural limitations.
Abstract The paper draws a comparative analysis on the doctrine of mistake in contract law between common law and civil law traditions, to explore the legal implications and ramifications of blockchain technology, as one form of dlt , and smart contracting. The case of B2C2 Ltd v. Quoine Pte Ltd is instrumental in portraying how an actual legal dispute may arise in smart contracting relationships, whereby little to no human intervention exists. By comparatively analysing the two legal systems, one may understand better the judgments delivered by the courts in Singapore, the historical common law background leading to such a decision as confirmed also in appellate stage, the consequences such a decision may possibly have on the adoption of similar smart contracting arrangements, and the possible approach under a civil law regime. The conclusions pinpoint some crucial observations relating to the legal approach courts may adopt and their consequences on such contracting arrangements.
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
Der Übergang zu neueren Technologien ist immer schwierig, das zeigt die erste Kryptowährung namens Bitcoin. Es bietet eine Möglichkeit Finanztransaktionen zu schaffen, indem es als Geld und Zahlungsmittel unabhängig von einer Person, Organisation oder Einrichtung fungiert. Bald darauf kreiert man neue Blockchain-Technologien die mehr als nur Finanztransaktionen abwickeln. Ethereum ist die erste Kryptowährung, die über eine Turing-komplette Programmiersprache zum Schreiben von Smart Contracts verfügt. Dies eröffnet Informatikern die Möglichkeit, auf dieser Grundlage weiterzuentwickeln, um Geschwindigkeit, Stabilität und Dezentralisierung zu verbessern. Trotz all dieser ausgefeilten Technologie enthält sie neue Schwachstellen, von denen täglich neue auftauchen und Schäden in Millionenhöhe verursachen. Diese Arbeit basiert auf den Erfindungen wie Bitcoin, Ethereum, Solana und Near-Protocol. Die Funktionalitäten und die Unterschiede dessen sind zusammengefasst. Anschließend sind die Sicherheitskonzepte im Allgemeinen beschrieben, wobei die einzige Unterscheidung die Konsensmechanismen sind. Der praktische Teil wird mit React und dem Anchor-Framework entwickelt, und es werden sowohl die Front-End-als auch die Back-End-Implementierungen gezeigt. Mit diesen Technologien wird eine öffentliche, anonyme Plattform für den Austausch von Nachrichten entwickelt, beider eine Person einen zufälligen Namen erhält und gegen eine geringe Transaktionsgebühr Meinungen mit dem Rest der Welt teilen kann. Der Schwerpunkt liegt jedoch auf der Erstellung eines sicheren Smart Contracts und der Verbindung des Smartcontracts mit dem Frontend unter Verwendung der Solana Web3 Application Programming Interface (API)s. Darüber hinaus wird ein Smart-Contract-Audit mit Hilfe von Websites durchgeführt, die automatische Smart-Contract-Audit-Tools bereitstellen, und es wird gezeigt, dass der Smart Contract sicher ist. Deswegen wird, basierend auf einer Liste von bekannten Verhaltensregeln, in einem Abschnitt anhand von Code-Beispielen erklärt, wie man sicheren Smart-Contract-Code schreibt. Zu guter Letzt wird ein kurzer Überblick darüber gegeben, wie die Anwendung erweitert werden könnte, indem erklärt wird, wie die österreichische Regierung ihre politischen Wahlen digitalisieren könnte.
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.
Distributed ledger technology has the potential to be highly significant in this respect, especially when combined with the fact that continuous surveillance of cargo en route is rapidly becoming the new normal. Distributed ledger technology is beginning to affect the charter market, especially when it comes to such logistical matters as the arranging of fixtures and the juggling of available dates. Professor of Commercial Law in the Institute of International Shipping and Trade Law, Swansea University. “Blockchain” and “distributed ledger” are often used as if they were synonyms. But technically the former is a subgroup of the latter. “Distributed ledger” is any system in which a database is distributed over a number of participants, rather than being dependent on a centralised server, with changes having to be made to all copies. Professor of Commercial Law in the Institute of International Shipping and Trade Law, Swansea University.
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.
Part I of this article analyzed the legal and regulatory issues that exist in Australia’s current clearing and settlement infrastructure for shares. Part II of this article looks to the future and analyses the new system (‘CHESS 2.0’) that the Australian Stock Exchange (ASX) proposes to introduce. CHESS 2.0. will use distributed ledger technology (DLT) to process trades. This article will examine the mechanics for the clearing and settlement of shares in CHESS 2.0 and some of the new features that the ASX proposes to introduce. It analyses the legal and regulatory framework in Australia and considers whether CHESS 2.0 will be able to operate under the existing legal regime. It also examines how the new system will affect the rights of investors and provides recommendations for strengthening their rights. Moreover, it recommends that the ASX should implement a system of crypto-securities in the future.
The paper bill of lading remains pervasive despite numerous problems associated with its form. Blockchain heralds change as it allows unique tokens to be possessed and traded peer-to-peer instantaneously over the internet without the need for a trusted central administrator. Blockchain furthermore promises to ease processes thanks to its applicability in smart contracting procedures. The Model Law on Electronic Transferable Records (MLETR), passed by UNCITRAL in 2017, provides the relevant legal framework for legal protection of the blockchain bill of lading. This paper proposes Ethereum as a viable smart contract-enabled blockchain platform for a bill of lading system and examines said system’s compatibility with the MLETR. The analysis also shows that blockchain technology may have significant consequences for the ‘control’ approach for establishing possession of an electronic transferable record.
Abstract This chapter first describes the current use of the term “decentralized” as applied to permissionless blockchains like Bitcoin and Ethereum. Then, it analyzes the complex, contested nature of the term, delving into issues such as the different domains where power is exercised in blockchain systems and the fluid nature of power concentration and diffusion in these systems. Next, it provides examples of events that reveal sites of concentrated power in permissionless blockchain systems, focusing on the activities of software developers and miners. Finally, it explores the significant implications for law of using a fuzzy term like “decentralized” to make legal decisions, as misunderstandings about power hidden in the term can lead to flawed decisions across a wide swath of legal fields.
In this chapter, the author provides some profiles on possible developments in our legal fields of blockchain and smart contracts. Blockchain technology is gradually shaping many sectors of business. Tradelens is a permissioned blockchain, presented as a ‘neutral platform’ using ‘open standards’ and capable of allowing all members of the blockchain to have relevant information concerning any moving cargo in real time. The availability of all information concerning a given number of carriers might be capable of generating anti-competitive effects, in so far as sensitive information could become available among competitors. Information which is in the blockchain is per se transparent and accessible, but will remain forever available and accessible, and should not therefore contain personal or sensitive data. The digital economy and e-commerce have profoundly changed the patterns of transport. One might assume that, in the shipping and transport industry, the transmission or uploading of personal or sensitive data concerning the individual would not be very frequent.
Abstract After a lengthy incubation period, electronic bills of lading (eBLs) are at last taking their first tentative steps in the shipping world. Systems currently in operation, however, are closed; only traders, carriers and banks who are members can participate. These closed schemes are not, therefore, true replacements for traditional paper bills of lading (pBLs), which can be used by anyone. Open eBL implementations are very difficult, which is no doubt why practical schemes so far have been closed. While blockchains and smart contracts make no difference to what is possible, they do to what is practicable. In particular, they may render feasible eBL implementations more open than those that have existed until now. They can obviate the need for distrusted central registries, and resolve the digital islands problem which can plague closed schemes. This article considers how an open eBL implementation might work. The schemes suggested here are rendered practicable by the new technology, should the industry choose to go down the eBL route. It may not so choose, at any rate in the short term, but if it does take this route, the article examines the legal obstacles that would need to be overcome. It assumes no change in the existing law, but concludes with a discussion of what lawmakers should consider, were they minded to assist.
Distributed ledger technology (DLT) is on the rise. With this in mind, Steven De Lara and Colin Grech, both from Signature Litigation, ask what exactly does DLT do, and where does the law stand in relation to it?
Mudassir Khan, Mohammad Mazhar Nezami, Rajesh Dey, Tanveer Ahmad
Initially introduced to support programming cryptocurrencies, blockchain technology has evolved quickly to be considered fundamental for secure, transparent, and decentralized systems in and across industries. This chapter attempts to illustrate how blockchain system rests on the cornerstones of distributed ledger technology, immutability, and consensus mechanisms and provides case studies in areas like healthcare, real estate, and urban infrastructure to illustrate how blockchain can be used to strengthen trust, enhance efficiency, and automate processes; it also goes on to address the challenges of security concerns and standardization. The role of artificial intelligence (AI) also strengthens the application of blockchain in the field, developing cybersecurity solutions for a smart governance system. Through insight into general-use scenarios and experimental work, this chapter defines a field vision over a variety of scholarly perceptions of blockchain. It also suggests governance, interoperability, and intelligent systems as significant elements for the scaling of blockchain solutions. The narrative ultimately reflects on the future convergence of blockchain, AI, and digital governance to pave the way for resilient and intelligent communities connected throughout sustainable digital landscapes.