How Does an Off-Chain Legal Wrapper Attempt to Solve the Jurisdiction Problem?

An off-chain legal wrapper is a traditional, legally binding contract that sits alongside the smart contract. It specifies the legal jurisdiction, governing law, and dispute resolution process (e.g. arbitration or court) for the parties involved.

Its purpose is to provide a clear legal framework and recourse mechanism for the on-chain agreement, bridging the gap between code and traditional law.