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33 Berkeley Tech. L.J. 487 (2018)
Trust, but Verify: Why the Blockchain Needs the Law

handle is hein.journals/berktech33 and id is 509 raw text is: TRUST, BUT VERIFY: WHY THE BLOCKCHAIN NEEDS THE LAW Kevin Werbacht ABSTRACT The blockchain could be the most consequential development in information technology since the Internet. Created to support the Bitcoin digital currency, the blockchain is actually something deeper: a novel solution to the age-old human problem of trust. Its potential is extraordinary. Yet, this approach may not promote trust at all without effective governance. Wholly divorced from legal enforcement, blockchain-based systems may be counterproductive or even dangerous. And they are less insulated from the law's reach than it seems. The central question is not how to regulate blockchains but how blockchains regulate. They may supplement, complement, or substitute for legal enforcement. Excessive or premature application of rigid legal obligations will stymie innovation and forego opportunities to leverage technology to achieve public policy objectives. Blockchain developers and legal institutions can work together. Each must recognize the unique affordances of the other system. DOI: https://doi.org/10.15779/Z38H41JM9N © 2018 Kevin Werbach. t Associate Professor of Legal Studies and Business Ethics, The Wharton School, University of Pennsylvania. Email: werbach@wharton.upenn.edu. Thanks to Dan Hunter for collaborating to develop the ideas that gave rise to this Article, and to Sarah Light, Patrick Murck, and participants in the 2017 Lastowka Cyberlaw Colloquium and 2016 TPRC Conference for comments on earlier drafts.