Blockchain, also known as Distributed Ledger Technology (DLT), is probably one of the greatest economic innovations of our time. Blockchain is a new technology that makes it possible to store, process, share and manage all kinds of information in a publicly accessible database. In a continuous list of data records – so called blocks – these are linked by means of cryptography. Currently there is no such thing as a Blockchain law. Due to the numerous possible applications there are many different legal aspects of this new technology that need to be observed. Bitcoin and other crypto currencies are one application, but not the only one. Other applications are for example Mining, Tokenization, Smart Contracts, ICO/STO, Wallets and others. Key legal questions in regulatory, IP, civil, corporate, tax, data, public and capital markets law revolve around the possibilities and limits of the use of blockchain technology. This new technology is still in its early stages and current developments are by no means taking place in a legal free space. It is of great importance to have a good understanding of the various applicable laws and how blockchain fits in the current landscape. It remains to be seen what means the legislator will use and how intensively this new technology is going to be regulated.

Solving Drafting/Editing Problems

1. Clarity: Since this is a new area don’t assume that people understand any of the technical terms.  A recent study showed that 90% of people think “Bitcoin” with “Blockchain” are the same thing. There is a lot of new terminology related to this new technology. For this reason, use simple and clear explanations. Separate between the different applications and don’t confuse the different legal aspects to them. Also avoid using acronyms at first like DLT, ETH, BTC and others that may be unfamiliar to readers.

2. Adaptation: Given the regular and rapid developments in this area, it is important to review one’s contributions and recommendations regularly. To stay up to date it is of great importance to be able to research in an effective manner.

3. Concision: People in the blockchain space like their “white papers” and technical data and long summaries, but investors in the space are looking for short, quick answers.  The technical side can be mentally challenging for people to understand, so when dealing with a layperson make sure to use metaphors – like blockchain itself.  For example, it’s like a “block” of information that is “distributed” across many computers in a “chain” so that there is a definite record or “ledger” of events that cannot be changed.  If you change it, then the “chain” might be “broken” and then the information in the blocks would be no longer usable.

Contributor: Dominik Tyrybon

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