Blockchain technology and related legal implications

Blockchain technology is used for recording public or private information in a way that it portrays trust-based method of recording that data. It is basically a method of storing data or any information so that it becomes difficult for any outsider or unauthorized person to change, hack or corrupt that data. It is a digital ledger of data that includes all the transactions of a specific thing, and this ledger is transferred to all the people involved in that transaction. Each blockchain consists of transactions and each time a change is made in the ledger it gets added to that person’s ledger. This means that if anything is tampered with by unauthorized user, then it will be recorded in everybody’s ledger and then that hacker must change the transactions in every person’s ledger that has access to it, which is basically impossible.

Blockchain technology is currently used in cryptocurrency, that has been the talk of all the people that are related to finance and investments and trading of cryptocurrencies has recently increased and a lot of people all over the world are investing their time and money in cryptocurrency. Many businesses are yet to understand the true potential of blockchain technology and ways in which it can be used to make things more efficient and effective in ways that it will be beneficial for the business. Normal transactions that are made by a person or by any enterprise relating to any financial part of their business can be tampered with very easily by a hacker, so it is an advantage of blockchain technology that it can help in safer transfer of data and keep the information and data of any kind safe from any interference by any unauthorized person.

Legal Issues relating to Blockchain Technology:

  • From a commercial point of view recording of information through blockchain technology by forming smart contracts would be highly securer and will give boost to the economy and that business. But from a legal point of view all the conditions necessary for fulfilment of that contract will have to decide by the parties. Things like the law applicable on them and the jurisdiction that would be followed, privacy of the contract, steps related to dispute resolution and more will have to be decided by the parties by sitting together. The main problem in these kinds of smart contracts will be deciding upon what laws will be applicable and what jurisdiction will be followed in case of conflict. There may be a situation where a transaction made by an organization might fall under the jurisdiction of all the nodes in which the blockchain technology is situated and, in that condition, there will be many laws and regulation that will apply to the situation which will create a lot of chaos.
  • All the transactions made in blockchain technology are public and ambiguous, it means that there no way possible to know with whom you are entering into transaction with, lets say in a bitcoin blockchain all the people dealing in it have a public key and it is in now way possible to know with whom you are entering into transaction with and also there is no central organization in case of bitcoin that is handling it, so it is not possible to take any legal action in case of fraud or any other misuse of the blockchain.
  • From, human rights view, blockchain technology has both, a positive and a negative impact. As there is a chance that the privacy of the individual using that technology can be tampered with. The right to privacy is vulnerable in this situation, as when a data is filled in the blockchain, it can neither be deleted or changed and any mistake that is made by any person relating to personal data cannot be undone. Also, a person’s consent is required to use someone’s personal data, but the system is so complex that it might defy average person’s understanding of that technology.
  • Global trade is done through blockchain technology, this means that it will involve many authorities beyond the buyer and the seller like custom, any regularity authority, any insurance company, broker if any etc. so there is a need of multiple exchange of data, so there can be breach of data at any part in completion of that transaction.
  • There is no central or regulatory authority that has control over the blockchain technology. A person’s personal information is there in blockchain, and he/she does not have any knowledge as to how that information is used or how it is protected from falling in the wrong hands. All the things or transactions that take place in the blockchain are done in blind trust as to no wrong will be done. As there is no regulatory authority there is a higher chance that the personal data may be misused.
  • There are basically two kinds of blockchain, that are permissionless and permissioned. The permissionless blockchain can be used for illegal purposes and for money laundering by criminals and it can be used to get around competition laws in the market.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

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