What Is 'Code Is Law' in the Context of Smart Contracts? ⎊ Path

What Is ‘Code Is Law’ in the Context of Smart Contracts?

'Code is law' refers to the principle that the terms and logic encoded in a smart contract are the ultimate authority for the agreement's execution. The code dictates the outcome, superseding external legal systems or human interpretation.

This creates a self-enforcing environment where the contract executes precisely as programmed, fostering trust through mathematical certainty.

How Does the “Code Is Law” Concept Apply to Smart Contracts?

What Is the Primary Difference between a Traditional Contract and a Smart Contract?

What Is a Key Difference between a Traditional Financial Contract and a Smart Contract?

How Does a Governance Token Relate to the “Code Is Law” Principle?

What Is the Challenge of Enforcing Legal Recourse for a Smart Contract Default?

What Is ‘Code Is Law’ in the Context of Decentralized Finance?

What Are the Limitations of ‘Code Is Law’ When Dealing with Unforeseen Events?

How Do ‘Expiration Dates’ for Traditional Options Contracts Compare to Smart Contract Time-Locks?

Glossar

Code

Algorithm ⎊ Code, within cryptocurrency, options trading, and financial derivatives, represents a defined set of instructions enabling automated execution of trading strategies or complex calculations related to pricing and risk assessment.