Advances in blockchain technology have revolutionized what a contract can be: lines of code that are stored on the decentralized network, otherwise known as smart contracts. Smart contracts are self-executing agreements that automatically enforce the terms of the agreement using a series of if-then conditions. They are projected to give a better solution to traditional contracts in terms of reducing risk, reducing costs, and improving the efficiency of corporate processes. However, the transparent and immutable nature of blockchain technology imposes significant challenges regarding an individual’s right to control their personal information in the context of smart contracts. This article examines the legal challenges and implications that arise in the context of data privacy laws within the United States in the implementation and enforcement of smart contracts. Additionally, this article addresses how these challenges can potentially be resolved through effective regulatory frameworks and the creation of an authority that enforces those regulations.
Dhillon, Khusbeen, "Ensuring Data Privacy in a Decentralized World: An Analysis of the Legal Challenges and Implications of Smart Contracts" (2023). Featured Student Work. 13.