Paper: The Triumph of Society: Blockchain and Law in the Real World

Abstract

This chapter challenges the conventional narrative of blockchain technology as being inherently antithetical to legal systems and societal norms. Through a comprehensive analysis of recent developments in blockchain adoption and implementation, the chapter argues that blockchain technologies and legal institutions are increasingly finding ways to coexist and complement each other. The chapter examines how courts have shown a willingness and capability to address blockchain-related disputes, and how human intervention has been crucial in mitigating losses from attacks on blockchain-based platforms, particularly in decentralized finance (DeFi). It highlights the growing call from industry players for clearer regulation, indicating a shift towards accepting legal frameworks rather than rejecting them outright. The relationship between blockchain and law serves as a proxy for the broader interaction between blockchain and society, emphasizing that blockchain systems are ultimately mediated by collective human judgment and societal principles. By presenting evidence from cases and incidents that affected the blockchain community, the chapter concludes that while blockchain code offers an alternative route to trust and transactional integrity, legal systems, communal norms, and market incentives continue to play crucial roles in shaping collective behavior in the blockchain ecosystem.