The Judicialization of the Blockchain

Abstract

This chapter argues that blockchain technologies structurally tend towards ‘judicialization’ and challenge the traditional, state-centric notions of jurisdiction and enforcement. After an introductory section, section II sets the scene by locating the emergence of blockchain technologies within the broader debate concerning the relationship between national and transnational law. Such a contextualization is crucial in order to develop a reliable understanding of the impact of this set of technologies on the state’s capacity to preserve its central role in the administration of justice through a system of courts. Against this background, section III investigates the effect of blockchains and smart contracts on the notion of jurisdiction, drawing lessons from the historical evolution of the concept and applying them to the current technological reality. Relying on empirical data, it is argued that the growth of blockchain technologies has given rise to a proliferation of private arbitral systems, generating a new division of labour between state courts and private adjudication. Finally, section IV of the chapter considers the emergence of self-enforcing smart contracts and its consequences for the traditional view whereby the state maintains a monopoly over the use of force.