Private contracts are agreements between two or more parties that are not publicly recorded on a blockchain, distinguishing them from smart contracts which are transparent and immutable on-chain. These traditional legal arrangements often govern off-chain aspects of digital asset transactions, such as escrow terms, dispute resolution, or intellectual property rights. They rely on established legal systems for enforcement. Private contracts provide flexibility for bespoke arrangements.
Context
The interplay between private contracts and on-chain activities is a developing area in the digital asset space, particularly for institutional adoption and complex financial products. Discussions often address how traditional legal frameworks can interact with blockchain technology to provide comprehensive legal certainty. A key debate involves the enforceability of private agreements that reference or depend on immutable on-chain events.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
