Blockchain and its Applications: A Conceptual Legal Primer

Abstract

Blockchain is a potent buzzword and a potentially transformative technology. Diverse businesses are looking to leverage this technology to reap its alleged benefits of increased efficiency, reduced costs, enhanced transparency and improved traceability. Yet, significant confusion persists about the structure, utility and applicability of blockchain technology. A clear understanding of what blockchain is and how it works is especially important for lawyers tasked with advising clients on the applications that use, or purport to use, it. This article aims to assist lawyers and scholars by providing conceptual clarity about what blockchain is, how it works, and its main use cases. These use cases include ICOs, STOs, cryptoassets, smart contracts, NFTs (non-fungible tokens), and some central bank digital currencies. These applications may transform business practices, or even entire monetary and payment systems. Rigorous conceptual clarity is needed around this technology and its principal applications.

Keywords: Blockchain, Smart Contracts, Cryptoassets, Initial Coin Offerings, Security Token Offering, Stablecoins, Non-Fungible Tokens, Central Bank Digital Currencies, CBDCs, DLT, Distributed Ledgers