How Can Smart Contracts and Traditional Legal Contracts Be Integrated to Work Together?

Smart contracts and traditional legal contracts can be integrated to create a hybrid agreement that combines the automation of code with the nuance of legal prose. This is often done using a "legal wrapper," where a traditional contract defines the terms of the agreement in natural language and legally binds the parties, while also referencing a smart contract that automates certain obligations, such as payment or collateral transfers.

This approach allows the smart contract to act as an execution engine for the legally enforceable promises made in the traditional contract, providing both legal clarity and automated efficiency.