Determining The Role Of Law In Smart Contracts

Introduction

Through blockchain, smart contracts have redefined the ways in which individuals and organisations may enter into contractual relationships. Beyond its familiar applications like cryptocurrencies and Non-Fungible Tokens (NFTs), blockchain has unfurled a realm where contracts transcend paper to become digital code, securely nestled within transparent, communal databases. These contracts, aptly known as ‘Smart Contracts’, offer an unprecedented level of security, shielding their terms from
deletion, tampering, or revision. Moreso, their execution is seamlessly automated, eliminating inefficiencies prevalent in traditional contracts.

However, with all its benefits and possible advantages, some postulate that smart contracts bring a new complexity to contract law as it requires a certain technological skill set and sophisticated procedures to ensure these contracts are well crafted. Furthermore, many suggest that the role of lawyers has been reduced to, at best, drawing up the standard terms of the contract which will be reproduced in the Smart Contract. In this article, we will examine the correctness or otherwise of this
assertion as well as the legal implications with regards to the implementation of smart contracts and its potential impact on the Nigerian commercial space.