How Can Smart Contracts Be Designed to Comply with Evolving Multi-Jurisdictional Regulations?
Designing compliant smart contracts requires a modular and upgradeable architecture. This allows legal and regulatory logic to be updated without redeploying the entire contract.
Integrating oracles that provide regulatory information as a data feed can help the contract adapt to changes in real-time. Another approach is to use permissioned blockchains where participants are known and subject to specific legal agreements.
Furthermore, embedding legal prose alongside the code, using standards like the Ricardian Contract, can provide clarity for legal interpretation across jurisdictions.
Glossar
Smart Contracts
Function ⎊ Smart contracts are self-executing agreements with the terms of the agreement directly written into lines of code, residing on a decentralized ledger.
Upgradeable Smart Contracts
Contract ⎊ Upgradeable smart contracts represent a paradigm shift in decentralized application (dApp) architecture, enabling modifications to deployed code without necessitating a complete redeployment.
Permissioned Blockchains
Architecture ⎊ Permissioned blockchains, within cryptocurrency and derivatives, represent a departure from public, open-access systems, establishing a controlled network environment.
Digital Identity Solutions
Concept ⎊ Digital identity solutions provide secure and verifiable methods for individuals or entities to prove their identity in digital environments.