Harmonizing Contract Theory With Blockchain-enabled Smart Contracts

Abstract

The impact of digital transformation within the legal domain has extended to the theory of contract. This evolution has altered traditional contracting patterns towards electronic contracts and, ultimately, to smart contracts integrated into blockchain technology. These modern mechanisms, built on the foundations of automation and autonomy, have been effective in accelerating contractual transactions. However, these advantages have created challenges in view of their incompatibility with some of the established principles of contract theory. Therefore, this necessitates a legislative intervention to establish a comprehensive legal framework that ensures the compatibility of this technique, safeguards the safety of its use, and provides the necessary protection for its underlying data attaining contractual security