Blockchain Technology and Law: Revealing The Paradox

Pavan Kumar.R, Associate At White Lion Legal, Bengaluru

ABSTRACT

In terms of information technology, the blockchain might be the most significant breakthrough since the Internet. Aside from serving as a backbone for the Bitcoin digital currency, the blockchain provides a unique answer to the age-old human problem of trust. The blockchain craze has reached new heights. According to the World Economic Forum, 10 percent of global GDP will be held on blockchain by 2027, which has sparked an unprecedented interest in blockchain.1 Instead of asking how to govern blockchains, ask how blockchains regulate themselves They can be used to enhance, complement, or even replace legal enforcement in certain situations. A strict legal framework that is too or prematurely enforced will stifle innovation and miss out on chances to use technology to achieve public policy goals It is possible for blockchain engineers and legal organisations to collaborate. For each system to function well, it must be aware of the advantages of the other. Due to the availability of legal processes, western legal systems have historically helped to create confidence between parties and minimise transactional uncertainty. It is important to remember, however, that creating trust involves considerable transaction costs. As a result of blockchain, these expenses may be reduced to a "much, much smaller level." India's laws on virtual currencies are also in flux now due to recent legislative changes. On the legal handling of virtual currencies, a Supreme Court lawsuit is ongoing against the RBI's circular. However, the government has repeatedly warned against the hazards connected with virtual currencies, despite many pro-blockchain pronouncements in different studies and press releases. In this Article the author tries to explain the concept of how blockchain works and further also explains the public and private blockchain, the concept of antitrust paradox with respect to blockchain.

Keywords: Smart Contract, Public Blockchain. Private Blockchain, Block Chain Antitrust Paradox.