Blockchain technology: an analysis of economic, technical, and legal implications

This study proposes a conceptual framework, research propositions, and future research themes to investigate the interplay between the law system, the industry environment, and blockchain organizational adoption. Such investigation leads to the analysis of the IT characteristics of Bitcoin and smart contracts, together with their legal nature, across different countries, including the European Union and the USA. This analysis reveals that blockchain technology, in its current form, cannot directly substitute for traditional business transactions, as these transactions operate under established legal principles that blockchain technology applications do not inherently fulfill. Our comparative legal analysis demonstrates the need for blockchain technology to align with existing legal frameworks to ensure transaction validity and enforceability. Therefore, possible adjustments that fit various legal systems are proposed. The main contribution of this research is to highlight that the next challenge for IT developers, legal specialists, legislators, and managers is balancing the need to develop innovative blockchain technology applications that comply with legal requirements in a way that does not discourage industry growth and blockchain technology adoption.