Blockchain Law: A New Beginning

A blockchain is a time-stamped series of immutable record of data that is managed by a cluster of computers not owned by any single entity. Each of these blocks of data is secured and bound to each other using cryptographic principles. Bitcoin is the most popular example that is intrinsically tied to blockchain technology. It is also the most controversial one since it helps to enable a multibillion-dollar global market of anonymous transactions without any governmental control. Hence it has to deal with a number of regulatory issues involving national governments and financial institutions.Since blockchain technology only creates an infrastructure or medium enabling a variety of applications, it is yet to stir up much regulatory controversy in and of itself. This is as opposed to, say, crypto-assets, which may disrupt traditional value-transfer systems and have governments around the world scrambling to understand their legal consequences.Legal frameworks are based on national borders, it is highly relevant from a legal perspective especially in the countries in which any legal act has been performed; it is relevant to understand which law applies and which government has the authority to enforce the law. However, the actual relevance of the law remains limited.