Cardozo’s Blockchain Project, directed by Professor Aaron Wright, has released a second report focusing on the legal enforceability of blockchain technology, which continues to transform the world.
The report provides a brief overview of blockchain technology and smart contracts, explores whether legal agreements relying on blockchain technology will be deemed enforceable and evaluates whether additional legislation is necessary to accommodate electronic contracting involving blockchain-based smart contracts.
The report also examines the role of individual state statutes. "The gist of the issue here,” said Professor Wright, “is that states have amended their electronic records laws to expressly accommodate blockchain, when it is unnecessary since blockchains likely fit into existing legislation. By doing so, states have defined blockchains using ambiguous, often erroneous language which does more harm than good to the enforceability of smart contracts. We believe that without these amendments, smart contracts should be deemed enforceable under US state law, with certain exceptions."
The Cardozo Blockchain Project is a law school initiative developed to explore the legal issues and challenges related to blockchain technology.
Read the latest report here.