Smart Contracts: Legal and Security Implications

Shiva Ganesh

Legal Validity: Smart contracts automate agreements, but their legal recognition varies by jurisdiction, raising questions about enforceability.

Security Vulnerabilities: Coding errors and blockchain security flaws can lead to unauthorized access and financial losses.

Transparency and Trust: Smart contracts provide transparency by executing terms automatically, but this can also expose sensitive data.

Regulatory Compliance: Ensuring compliance with anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations is crucial.

Dispute Resolution: Traditional legal systems may struggle with the immutable nature of blockchain, complicating dispute resolution.

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