What are the implications of smart contracts in legal contexts? 🔊
The implications of smart contracts in legal contexts are profound, as they automate and enforce contractual agreements through blockchain technology. These self-executing contracts can operate without the need for intermediaries, reducing friction and increasing efficiency. Smart contracts ensure that terms are transparently set and executed automatically once predefined conditions are met, minimizing disputes. However, they also raise questions regarding legal enforceability, jurisdiction, and the need for clear coding to reflect legal terminology. Additionally, they challenge traditional contract law frameworks and may require new regulatory approaches.
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