• Home
  • Imprint
  • Privacy policy
  • Terms
  • Agile and lean law firm
  • Ideal partner
  • Contact
  • Videos
ITMediaLaw - Rechtsanwalt Marian Härtel
  • en English
  • de Deutsch
  • About lawyer Marian Härtel
    • About lawyer Marian Härtel
      • Ideal partner
      • About lawyer Marian Härtel
      • Video series – about me
      • Why a lawyer and business consultant?
      • Principles as a lawyer
      • Focus on start-ups
      • Nerd und Rechtsanwalt
      • Ideal partner
      • How can I help clients?
    • Über die Kanzlei
      • How clients benefit from my network of colleagues, partners and service providers
      • Quick and flexible access
      • Agile and lean law firm
      • Team: Saskia Härtel – WHO AM I?
      • Price overview
    • How can I help clients?
    • Sonstige Informationen
      • Einwilligungen widerrufen
      • Privatsphäre-Einstellungen ändern
      • Historie der Privatsphäre-Einstellungen
      • Privacy policy
    • Testimonials
    • Imprint
  • Leistungen
    • Focus areas of attorney Marian Härtel
      • Support with the foundation
      • Games law consulting
      • Advice in e-commerce
      • Support and advice of agencies
      • Legal advice in corporate law: from incorporation to structuring
      • Legal compliance and expert opinions
      • Streamers and influencers
      • Cryptocurrencies, Blockchain and Games
      • Outsourcing – for companies or law firms
    • Arbeitsschwerpunkte
      • Games and esports law
        • Esports. What is it?
      • Corporate law
      • IT/IP Law
      • Consulting for influencers and streamers
        • Influencer & Streamer
      • Contract review and preparation
      • DLT and Blockchain consulting
        • Blockchain Overview
      • Investment advice
      • AI and SaaS
  • Artikel/News
    • Langartikel / Guides
    • Law and computer games
    • Law and Esport
    • Law on the Internet
    • Blockchain and web law
    • Online retail
    • Data protection Law
    • Copyright
    • Competition law
    • Copyright
    • EU law
    • Law on the protection of minors
    • Labour law
    • Tax
    • Kanzlei News
    • Other
  • Videos/Podcasts
    • Videos
    • Podcast
      • ITMediaLaw Podcast
      • ITMediaLaw Kurz-Podcast
  • Knowledge base
  • Contact
Kurzberatung
  • About lawyer Marian Härtel
    • About lawyer Marian Härtel
      • Ideal partner
      • About lawyer Marian Härtel
      • Video series – about me
      • Why a lawyer and business consultant?
      • Principles as a lawyer
      • Focus on start-ups
      • Nerd und Rechtsanwalt
      • Ideal partner
      • How can I help clients?
    • Über die Kanzlei
      • How clients benefit from my network of colleagues, partners and service providers
      • Quick and flexible access
      • Agile and lean law firm
      • Team: Saskia Härtel – WHO AM I?
      • Price overview
    • How can I help clients?
    • Sonstige Informationen
      • Einwilligungen widerrufen
      • Privatsphäre-Einstellungen ändern
      • Historie der Privatsphäre-Einstellungen
      • Privacy policy
    • Testimonials
    • Imprint
  • Leistungen
    • Focus areas of attorney Marian Härtel
      • Support with the foundation
      • Games law consulting
      • Advice in e-commerce
      • Support and advice of agencies
      • Legal advice in corporate law: from incorporation to structuring
      • Legal compliance and expert opinions
      • Streamers and influencers
      • Cryptocurrencies, Blockchain and Games
      • Outsourcing – for companies or law firms
    • Arbeitsschwerpunkte
      • Games and esports law
        • Esports. What is it?
      • Corporate law
      • IT/IP Law
      • Consulting for influencers and streamers
        • Influencer & Streamer
      • Contract review and preparation
      • DLT and Blockchain consulting
        • Blockchain Overview
      • Investment advice
      • AI and SaaS
  • Artikel/News
    • Langartikel / Guides
    • Law and computer games
    • Law and Esport
    • Law on the Internet
    • Blockchain and web law
    • Online retail
    • Data protection Law
    • Copyright
    • Competition law
    • Copyright
    • EU law
    • Law on the protection of minors
    • Labour law
    • Tax
    • Kanzlei News
    • Other
  • Videos/Podcasts
    • Videos
    • Podcast
      • ITMediaLaw Podcast
      • ITMediaLaw Kurz-Podcast
  • Knowledge base
  • Contact
ITMediaLaw - Rechtsanwalt Marian Härtel
Home Blockchain and web law

Blockchain and smart contracts

10. October 2024
in Blockchain and web law
Reading Time: 3 mins read
0 0
A A
0
blockchain und smart contracts rechtliche herausforderungen fuer innovative unternehmen
Key Facts
  • Blockchain: Decentralized data storage affects data protection law, contract law and financial market law
  • Smart contracts: Automated contracts require precise declarations of intent in accordance with Section 116 BGB.
  • Data protection issue: immutability of the blockchain contradicts the right to erasure under the GDPR
  • Financial market law aspects: Blockchain products may be subject to licensing requirements under the KWG or KAGB.
  • Liability issues: responsibility for faulty smart contracts and IT security must be clarified
  • Practical tips: Companies should introduce early legal analysis and regulatory dialog.
  • Governance structures: Clear structures are necessary for responsibilities in decentralized systems.

Blockchain technology and smart contracts have the potential to revolutionize numerous industries and enable new business models. These technologies offer enormous opportunities for innovative companies, but also present them with complex legal challenges. This article highlights the most important legal aspects that companies need to consider when implementing blockchain solutions and smart contracts.

Content Hide
1. Legal classification of blockchain and smart contracts
2. Contract law aspects of smart contracts
3. Data protection challenges
4. Financial market law aspects
5. Liability issues and IT security
6. Practical tips for innovative companies

Legal classification of blockchain and smart contracts

The legal classification of blockchain technologies and smart contracts is not always clear due to their novelty and technical complexity. In principle, it can be said that

1 Blockchain: In the legal sense, a blockchain is initially a technology for decentralized data storage. Depending on the application, however, various areas of law may be affected, in particular data protection law, contract law and financial market law.

2. smart contracts: Smart contracts are self-executing contracts whose terms are written directly in computer code. Legally, they can be understood as declarations of intent within the meaning of Section 116 of the German Civil Code (BGB), whereby the special features of automated execution must be taken into account.

Contract law aspects of smart contracts

Smart contracts raise a number of questions under contract law:

1 Conclusion of contract: The time of contract conclusion for smart contracts can be unclear. It must be clarified whether the programming of the smart contract is already considered a binding offer or only the initiation of the transaction.

2. declarations of intent: With smart contracts, declarations of intent are made through technical actions. It must be ensured that these meet the requirements of Section 126a BGB for electronic form.

3. avoidance on the grounds of error: The possibilities for avoidance on the grounds of error (Sections 119 et seq. BGB) are limited in the case of smart contracts, as execution is automated.

4. contract amendment and termination: The immutability of blockchain entries can make it difficult to subsequently amend or terminate contracts.

To overcome these challenges, it is advisable to embed smart contracts in a legal framework agreement that regulates the basic rights and obligations of the parties and provides mechanisms for disputes.

Data protection challenges

Blockchain technology is in a certain tension with the principles of the GDPR, in particular

1. right to erasure (Art. 17 GDPR): The immutability of blockchain entries conflicts with the “right to be forgotten”.

2. principle of data minimization (Art. 5 para. 1 lit. c GDPR): Redundant data storage in the blockchain is contrary to this principle.

3. determination of the controller (Art. 4 No. 7 GDPR): In decentralized networks, determining the controller under data protection law can be difficult.

Possible solutions include the use of off-chain storage for personal data, the use of encryption techniques and the implementation of “pseudo-deletion functions” by overwriting data.

Financial market law aspects

Particularly in the context of cryptocurrencies and token issues (initial coin offerings, ICOs), financial market law aspects must be taken into account:

1. licensing requirement: Depending on their design, blockchain-based financial products may fall under the licensing requirement of the German Banking Act (KWG) or the German Investment Code (KAGB).

2. prospectus requirement: Public offerings of tokens may be subject to a prospectus requirement under the EU Prospectus Regulation.

3. prevention of money laundering: providers of cryptocurrencies must comply with the provisions of the German Money Laundering Act (GwG).

BaFin has commented on these issues in several publications, but many detailed questions remain unanswered and must be examined on a case-by-case basis.

Liability issues and IT security

The decentralization and automation of blockchain systems raise new liability issues:

1 Faulty smart contracts: Who is liable for damage caused by errors in the code of a smart contract?

2. IT security: How can companies fulfill their obligation to ensure adequate IT security when using blockchain technologies?

3. responsibility in decentralized systems: How can accountability be assigned in decentralized networks without a central control authority?

Companies should establish clear governance structures for their blockchain projects and carry out comprehensive risk analyses.

Practical tips for innovative companies

Based on his experience as an IT legal expert, the following practical tips for companies can be derived:

1. legal analysis: Carry out a comprehensive legal analysis of your blockchain project at an early stage to identify potential risks.

2. regulatory dialog: In the case of innovative projects, seek dialog with supervisory authorities at an early stage in order to clarify regulatory uncertainties.

3. contract design: develop clear contractual frameworks for the use of blockchain and smart contracts that also provide mechanisms for disputes and contract amendments

4. data protection by design: Implement data protection measures in your blockchain solutions right from the start, for example by using zero-knowledge proofs or off-chain storage.

5 Governance structures: Establish clear governance structures for your blockchain projects that regulate responsibilities and decision-making processes.

6. continuous review: regularly check the legal compliance of your blockchain applications, as the regulatory framework in this area is constantly evolving.

The legally compliant implementation of blockchain technologies and smart contracts presents companies with complex challenges. However, a proactive approach to the legal aspects is essential in order to fully exploit the potential of these innovative technologies. In view of the legal complexity and constantly evolving regulation in this area, it is advisable for companies to obtain specialized legal expertise at an early stage.

Blockchain technology and smart contracts offer enormous opportunities for innovative business models. Companies that master the legal challenges can secure a decisive competitive advantage and position themselves as pioneers in their respective industries.

 

Tags: AnalyseAutomationBlockchainCompetitive advantageContract designContract lawContractsData protection LawEuGDPRIT SecurityLegal challengesPersonal dataPrivacyRegulationrightSicherheitTechnologyTokenVerträge

Beliebte Beträge

Play to Earn – Blockchain gaming in the legal focus of a lawyer

Play to Earn – Blockchain gaming in the legal focus of a lawyer
15. May 2025

Introduction Definition and origin: Play to Earn (P2E ) refers to a category of blockchain-based computer games with their own...

Read moreDetails

Alternative financing models in Germany and other countries – admissibility and design

Alternative financing models in Germany and other countries – admissibility and design
30. March 2025

Companies, founders and start-ups are increasingly looking for innovative financing methods beyond traditional bank loans or venture capital. Alternative financing...

Read moreDetails

Blockchain startups and the new regulations: TOFR and CARF

Transfer of Funds Regulation (ToFR
9. February 2025

The blockchain industry is known for its love of acronyms - and that's a good thing, because this year there...

Read moreDetails

Blockchain technology in rights management: opportunities and challenges for content creators and artists

Establish a blockchain limited liability company? Does that
16. January 2025

Blockchain technology opens up fascinating new possibilities for the management of intellectual property and digital rights. For content creators, artists...

Read moreDetails

Blockchain in the supply chain

Blockchain in the supply chain: legally compliant implementation of smart contracts for logistics start-ups
21. October 2024

The integration of blockchain technology and smart contracts in supply chains promises increased transparency, efficiency and security. This opens up...

Read moreDetails

Smart contracts in the insurance industry

Smart contracts in the insurance industry: contract design and regulatory compliance for InsurTech start-ups
21. October 2024

The integration of smart contracts in the insurance industry promises to revolutionize the way insurance products are designed, sold and...

Read moreDetails

Smart contract implementation in traditional contracts

Smart contract implementation in traditional contracts
10. October 2024

The integration of smart contracts into traditional contract structures opens up fascinating opportunities for blockchain start-ups, but also poses complex...

Read moreDetails

Blockchain and AI in law – new territory or proven terrain?

Blockchain and AI in law – new territory or proven terrain?
13. August 2024

Introduction: Discourses at the interface of technology and law Last week, there was an exciting discussion with a doctoral student...

Read moreDetails

Blockchain gaming and the French Jonum Law

Blockchain in computer games – a new playing field for lawyers?
13. August 2024

Blockchain Gaming and the French Jonum Law in the light of the EU MiCAR Regulation On itmedialaw.com, I don't normally...

Read moreDetails
  • Home
  • Imprint
  • Privacy policy
  • Terms
  • Agile and lean law firm
  • Ideal partner
  • Contact
  • Videos
Marian Härtel, Rathenaustr. 58a, 14612 Falkensee, info@itmedialaw.com

Marian Härtel - Rechtsanwalt für IT-Recht, Medienrecht und Startups, mit einem Fokus auf innovative Geschäftsmodelle, Games, KI und Finanzierungsberatung.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
  • Contact
  • Leistungen
    • Support with the foundation
    • Focus areas of attorney Marian Härtel
    • Consulting for influencers and streamers
    • Advice in e-commerce
    • DLT and Blockchain consulting
    • Games law consulting
    • Support and advice of agencies
    • Legal advice in corporate law: from incorporation to structuring
    • Cryptocurrencies, Blockchain and Games
    • Investment advice
    • Booking as speaker
    • Legal compliance and expert opinions
    • Legal advice in corporate law: from incorporation to structuring
    • Contract review and preparation
  • About lawyer Marian Härtel
    • About lawyer Marian Härtel
    • Agile and lean law firm
    • Focus on start-ups
    • Principles as a lawyer
    • The everyday life of an IT lawyer
    • How can I help clients?
    • Why a lawyer and business consultant?
    • Focus on start-ups
    • How can I help clients?
    • Team: Saskia Härtel – WHO AM I?
    • Testimonials
    • Imprint
  • Videos
    • Video series – about me
    • Information videos – about Marian Härtel
    • Videos on services
    • Blogpost – individual videos
    • Shorts
    • Third-party videos
    • Podcast format
    • Other videos
  • Knowledge base
  • Podcast
  • Blogposts
    • Lange Artikel / Ausführungen
    • Law on the Internet
    • Online retail
    • Law and computer games
    • Law and Esport
    • Blockchain and web law
    • Data protection Law
    • Labour law
    • EU law
    • Corporate
    • Competition law
    • Copyright
    • Tax
    • Internally
    • Other
  • en English
  • de Deutsch
Kostenlose Kurzberatung