Determination and implementation of the law applicable to blockchain-based smart contracts in private international law

This study aims to analyze the legal framework governing law of the smart contracts, considering the substantial growth in their transaction volume and complexity driven by advancements in blockchain technology. Focusing exclusively on on-chain smart contracts, this study begins with technical insights and proceeds to justify the necessity of analyzing blockchain-based smart contracts within the framework of private international law, particularly in relation to issues of foreign elements and legal characterization. In light of the absence of a binding international legal framework applicable to blockchain-based smart contracts, the analysis turns to traditional private international law principles to evaluate their adequacy in determining the law applicable to disputes arising from these transactions. In response to the inadequacy of traditional rules, the study explores system-specific connecting factors and the prospect of emerging uniform norms, offering a series of recommendations based on these findings. Following an analysis of issues both within and beyond the lex causae, the study concludes by proposing a conflict of laws rule to determine the law applicable to smart contracts.