‘Die Grenzen meiner Sprache sind die Grenzen meiner Welt’Footnote 1 (L. Wittgenstein).

1 The Nature and the Legal Implications of Blockchain

For the sake of this study, a brief analysis of the blockchain will be carried out in order to grasp the elements of discontinuity with the past. In this respect, the blockchain is ‘a method of recording data—a digital ledger of transactions, agreements, contracts, anything that needs to be independently recorded and verified as having happened.

In practise, ‘the big difference is that this ledger isn't stored in one place, it's distributed across several hundred or even thousands of computers around the world. No one person or entity can control the data, which makes it transparent. The data forms blocks that are encrypted into a continuous chain using complex mathematical algorithms. Once updated, the ledger cannot be altered or tampered with, only added to, and it is updated for everyone in the network at the same time’Footnote 2.

By way of example, one can consider the sequence below (1–6) which describes the functioning of blockchain technology:

  1. 1.

    A wants to send money to B.

  2. 2.

    The transaction is represented as a block.

  3. 3.

    The block is transmitted to every node in the network.

  4. 4.

    The network nodes approve the transaction and validate it.

  5. 5.

    The next block can be added to the chain providing an indelible and transparent record of transactions.

  6. 6.

    Money goes from A–B.

Therefore, the following features emerge (Table 1).

Table 1 Blockchain features

As per the legal discourse, blockchain can be understood as the conjunction of ‘two of the central legal devices of modernity: the ledger and the contract’Footnote 3. In this regard, it is possible to perceive, at least in principle, an upgrade of existing legal tools. For the former, an analogy can be found in Roman Law’s Liber de Expensis wherein the pater familias noted budget revenues and expenditures. It was considered an authoritative record in Roman law. Once an entry was made, it was challenging to alter or manipulate without raising suspicion. This permanence contributed to the security and enforceability of obligations in Roman contracts. Further, In the Roman legal system, the Liber de Expensis functioned as an intermediary-less record-keeping system. It reduced the reliance on individuals' trustworthiness, as the recorded obligations themselves served as evidence. While the Liber de Expensis did not possess self-executing capabilities like smart contracts, it played a crucial role in the legal system by providing a clear record of obligations, which could be used as evidence in legal disputes, thereby promoting accountability and enforceability.

In this wake, it is possible to grasp how this technology can empirically enable the overcoming of territorial-physical limits. Specifically, the ductility of the blockchain allows its cross-functional application making it a general-purpose technology like Internet and electricityFootnote 4.

More properly, while standard contracts contributed to significantly reduce transaction costs, the blockchain reduces them to zero. In this respect, Keynesian theory establishes a biunivocal relationship between contract and enterpriseFootnote 5, qualifying the latter as ‘a nexus of incomplete contracts’Footnote 6. Hence, blockchain manages to factually bridge market failures zeroing asymmetries of information and related transaction costs.

Given that blockchain is a secure data structure and ‘a protocol for establishing consensus on valuable information within a flat network without hierarchy’Footnote 7, the role of certifiers falls short. Practically, ‘every user has a continuously authoritative copy. Anyone who has access to the ledger has access to the same full transaction history and the ability to verify the validity of all records’Footnote 8. Then, the code ‘enabling nodes in the network to interact with the data stored on a blockchain and act autonomously of some conditions are met is commonly known as a smart contract’Footnote 9.

For the sake of this study, It must first be said that this new emerging legal approach flattens the underlying hierarchy existing among state organs therefore questioning the role and position of statues, their formation, the State, and ultimately of the law itself. From the one hand, the inner traits of smart contracts can overshadow nuanced legal reasoning given the inflexibility of algorithms.

Overall, it should be remembered that algorithms process bulks of Data in an ahistorical, atemporal, and therefore a-contextual manner. By contrast, human-based decision-making (e.g. a court’s decision) operates a deductive choice wherein the temporal dimension plays a central role for the qualification of facts.

In view of this, it is arduous to harmonise the algorithmic predictivity with the law’s prescriptive trait. To continue, the human-machines collective intelligence appears to conflict with the traditional approach within legal regulation. The latter does consist of mutually exclusive modes of conducts pertaining to the rigid Roman taxonomy of imperare, vetare, permittere, and punire (D.1.3.7). As a result, it is indisputable that the zero-sum-game patterns of regulation may provide a certain decree of legal protection. In contrast, they may prevent the full development of opportunities, identities, and human dignity, as they are inherently conditional in their functioning.

To illiuminate this, a short line of code for a simple Ethereum smart contract written in Solidity follows:

figure a

In the provided code snippet, we have an ‘if’ statement that checks whether the sender of a transaction is the owner of the smart contract. If the condition is met, some action is performed, or funds may be transferred. For clarity, the system does neither ascertain nor consider the development of factual circumstances that might require other arrangements.Footnote 10

On the other hand, it is possible to inscribe these processes into Heideggerian notion of Ge-stell.Footnote 11 The German expression Ge-stell itself is a compound word that combines ‘Ge’ (en) and ‘Stell’ (to position or to frame). Heidegger employs this term to signify the essence of technology, characterizing it as a pervasive and controlling force that frames our understanding of the world. Ge-stell, in Heidegger's view, represents a mode of revealing, or enframing that challenges forth everything as a calculable resource. Therefore, its impact on society is profound. It has led to a world dominated by technology, where human beings are increasingly alienated from nature and authenticity. The commodification of the natural world and the reduction of human existence to mere efficiency have become hallmarks of this technological age.

Further, in keeping with Heidegger, such unharnessed technological process reinforces the ‘destruction of Being’ (Destruktion des Seins). In turn, this concept highlights how traditional structures and meanings can be flattened in the face of modern technology. Heidegger argues that technology threatens to reduce the depth and authenticity of human experience, creating a flattened existence characterized by instrumental rationality.

As per the legal discourse, the current state of the affairs departs—almost in a scratching manner—from the classic multi-layered, and therefore inherently dialectical dimension of the law. As Kaufmann puts it, ‘The State does not create the law; the State creates statutes, and both the State and statues are subject to the law’.Footnote 12 Against this backdrop, advances in technology challenge the very essence of the notions of State, statues, and the law itself. In keeping with the above, it is necessary to dwell on the possible semantic ambiguities of the term smart contract to grasp its implications over the contract and society.

Smart contracts are ‘autonomous software agents […] that automatically respond to inputs according to pre-programmed parameters’Footnote 13. Hence, there is no link with the ‘complex social dimension of contracts’Footnote 14 as ‘the finality of executed code reduces the agency of individuals involved’.Footnote 15 As a consequence, code appear the exclusive component in this process at the detriment of the lawFootnote 16. In this respect, it is possible to test these elements against traditional contractual components.

The table below (Table 1) compares blockchain’s features (cf. Table 2) against Contract Law Pillars.

Table 2 Blockchain features and Contract Law pillars

From the above comparison, a contrasting outline emerges.

In brief, the syntagma smart contract is a misnomerFootnote 17 for a twofold reason.

Firstly, the automatic execution of pre-defined tasks upon the occurrence of certain conditions excludes human agency a priori. Secondly, and in principle, there are no prerequisites to frame smart contracts within conventional contractual paradigmsFootnote 18. So, some reflection is called for the will theory of obligation considering blockchain networks’ manifest detachment from established contractual patterns. Analogies can be found in public callings carried on by big corporations with which individual (i.e. consumers) was not in a position to bargain and therefore to assert their interests.Footnote 19 Additionally, the practice of standard term insertion ‘has the advantages of saving time and creating standard patterns of dealing so as to enable parties to know what sorts of risks they will have to bear and cover by insurance. On the other hand, it has also been used by commercial suppliers of goods and services to exploit and abuse superior bargaining power, especially in contracts with consumers’.Footnote 20

At this point, it can be observed how the blockchain transfers the cost of trust and coordinationFootnote 21 to the network alone. Thus, it overcomes the above-mentioned hierarchy-centred Keynesian approach and Kaufmann’s theorisation.Footnote 22

Hence, it can be witnessed that trust is shifted from subjects having decision-making powers (e.g. judges and notaries) to the mere authenticity of transactions. From another angle, the reliance on third parties disappearsFootnote 23 and trust is entirely placed in the blockchain ‘to bridge over the uncertainty about the future’Footnote 24. In line with this, it follows that ‘untrusted members can interact verifiably with each other without the need for a trusted authority’Footnote 25. Vividly, Reid Hoffman coined the expression ‘trustless-trust’Footnote 26. In his own words, ‘on a blockchain network nothing is assumed to be trustworthy… except the output of the network itself’Footnote 27, Footnote 28.Footnote 29

In this respect, it could be convenient to refer to English ruling of Bowen LJ, Sounders v MacleanFootnote 30 to grasp the implications of this technology. More precisely, it reads as follows: ‘Credit, not distrust, is the basis of commercial dealings: mercantile genius consists principally in knowing whom to trust and with whom to deal, and commercial intercourse is no more based on the supposition of fraud than it is on the supposition of forgery’.

Analogously, it descends that ‘we have to be able to trust the blockchain, and to trust that no one controls it’Footnote 31. Additionally, the nature of tokens is very flexible as they are a set of rules encoded in a smart contract. In turn they are representations of ‘almost anything: a unit of virtual currency, an asset, physical object, or any other abstract entity’Footnote 32.

To clarify the above, let us briefly dwell on two examples that concern the activity of the judge, understood as an organ of the StateFootnote 33. Let us consider, for example, the case of a debtor who does not pay the sum of money to the creditors stipulated in the judgment. In many jurisdictions, the creditor may proceed in such a case with execution on the debtor’s assets. In this case, the competent court will usually order the debtor’s employer to start deducting a certain amount from the debtor’s salary to satisfy the creditor. This possibility is not, however, unlimited, as it is intended to ensure that the debtor maintains a minimum subsistence level. Obviously, the rationale behind this rule is the need to balance the creditor’s right to obtain the money with the need to preserve the debtor’s basic needs and rights. Similarly, a landlord seeking to enjoy eviction of the tenant would not be able to achieve this result with immediate effect: this is true even where there are legitimate grounds for eviction. National tenancy law requires that the tenant be given a minimum amount of notice in order to balance the landlord’s right to regain possession of the house with the tenant’s need to find an alternative solution for his accommodation. Therefore, the enforcement procedures established by state law require a certain period of time not only because instantaneous coercionFootnote 34 is not practically feasible, but also and especially in order to balance the opposing interests of the partiesFootnote 35. In contrast, the blockchain network does not—by its very nature—envisage either the presence of the judge (interpreter), or the balancing of the interests at stake, or (to give just one example) respect for human rightsFootnote 36Footnote 37. And with respect to the two aforementioned examples, the smart contract could make an automatic deductionFootnote 38 from the wages of the defaulting tenant and might be able to recover his money efficiently, without the need to rely on state-mediated procedures that impose an expected rate of return. In the case of eviction, the use of automatic locks managed through blockchain technologies can make it immediately impossible for the tenant to gain access to the house once the landlord activates the eviction through software scripts. The same does also apply to risk assessment procedure in insurtech to the possible detriment of the insured/weaker partyFootnote 39Footnote 40Footnote 41.

Now, while it is true that and blockchain technologies can ensure that individuals can autonomously achieve what the state traditionally would not allow by virtue of the above considerations with speed and efficiency. Hence, while some extol the virtues of blockchain technologies, emphasising the significant gains in efficiency and reliability, it is time to recognise that there may be another dark side to the often-extreme automation of justice. It follows that we must consider how rights, particularly constitutional rights, can be protected in the context of the technological environment where, as mentioned above, the binary code reigns and does not seem likely to embed fundamental rights, essential to civil coexistenceFootnote 42. Albeit with difficulty, Western democracies can incorporate the discourse of rights into their legislative processes. At present, there are no similar mechanisms with respect to the normative capacity of technology. Such reflections emerge from time to time in doctrine that glimpses the risk of the rule of law being literally devoured by the economic force of private powers governing the digital worldFootnote 43. In that regard, blockchain technology has a regulatory capacity (however debatable) that reaches beyond the state and national borders. In this sense, it can be argued that it represents, in a certain sense, a transnational system of rules in direct contrast with State jurisdiction, and ultimately with Sovereignty. In this vein, it is possible to inscribe the most complete piece of State norms on blockchain as a form of reaction towards these trends that can, at least in perspective, erode the prerogatives of sovereign States as shown. Precisely, the Principality of Liechtenstein (with the Blockchain Act), and the Republic of Malta (with the Malta Digital Innovation Authority Act (MDIA Act), and the Virtual Financial Assets Act (VFA Act) issued statutes enabling strong forms of control within State organs along with sanctions. Nonetheless, the following regulatory gaps emerge giving room to ambiguity or providing margin for a prospective enhancement of legal interpretation as this study points at.

More precisely, the MDIA Act introduces the concept of ‘innovative technology arrangements’ and the role of the Innovative Technology Arrangement Recognition Certificate (ITAR). However, it does not provide a comprehensive definition for ‘innovative technology arrangements’. This lack of specificity leaves the interpretation open-ended, making it challenging for businesses to discern the precise scope and applicability of the law.

The VFA Act introduces the term ‘virtual financial asset’ without offering a clear definition. The absence of precise boundaries can lead to differing interpretations, creating inconsistencies in how this legislation is applied. This ambiguity hinders the harmonization of legal standards, both domestically and on a global scale. Similar considerations can extend to Liechtenstein's Blockchain Act as well. Concretely, it introduces the concept of ‘registered tokens’ without providing a comprehensive definition. This imprecision can lead to confusion regarding the criteria for such tokens, potentially allowing for diverse interpretations by authorities. Consequently, companies may face compliance challenges, thereby impeding harmonization efforts. Moreover, the Blockchain Act grants regulators significant discretion in certain aspects of regulation. For instance, it empowers the Financial Market Authority (FMA) to determine the "necessary qualifications" for those engaging in token issuance or providing token custody services. The broad discretion can result in different standards being applied to various businesses, causing regulatory fragmentation.

Further, international private law provisions and categories are currently found inconsistent with today’s legal thinking since they do not correspond to smart contracts functioning and their practical needs. Specifically, PRIMA Model and the Factual PRIMA as of the Hague Convention presuppose the existence of intermediaries not existing as such in the blockchainFootnote 44. The Table 3 does contrastively outline the divergences existing between Blockchain Features and the Status of Intermediaries in International Private Law.

Table 3 Blockchain features and intermediaries in International Private Law

Moreover, the criteria of lex rei sitae can be difficultly met considering the aterritorial nature of the internet and thus, leaving room to the problem of mobility in private international law.Footnote 45

Analogously, at a sentencing level, clarity is still missed. Although the landmark Singaporean Court’s Quoine decisionFootnote 46 establishes guidelines and principles, it does not explicitly answer whether the automated nature of platforms can give rise to legal obligations. In concrete, the decision confirms an English case law’s precedentFootnote 47 holding that data inputs in a piece of software represent an offer. More properly, the Quoine case highlighted the need for robust regulatory oversight of cryptocurrency exchanges. As the number of exchanges increases, the risk of disputes and errors grows as well.Footnote 48 Regulatory gaps in this domain can lead to instances like the one in question. Legal academics should investigate the best practices for regulating cryptocurrency exchanges, including licensing requirements, security measures, and dispute resolution mechanisms. In the remainder of the paper the attention will be drawn into the individuation of some viable strategies embracing the legal discourse as a method rather than focusing on norms and their exegesis alone.Footnote 49 In this sense, flexibility can avoid lopsided regulatory impacts.Footnote 50 Differently put, public bodies and private organisations.

can therefore be effectively enabled to adapt to changing circumstances and new technologies.

Against this background, we may consider law and advances in technology as mutually exerting friction on each other as per the equation below.

$${F}_{f}=\mu {F}_{n}$$

This formula tells us that the force of friction (F_f) is directly related to the normal force (F_n) and the coefficient of friction (μ). The more the normal force or the coefficient of friction, the greater the force of friction. Conversely, if the normal force or the coefficient of friction is reduced, the force of friction decreases.

In what follows, the discussed approaches would try to hint at possible ways to lower these forms of friction.

2 The Interplay of Law, Semiotics, and Legal Interpretation

«There can be no question of interpreting code. Code does not have a meaning; it has an effect. The only question can be whether the code fits with any natural language term of statement that preceded or accompany it».Footnote 51.

(H. Beale).

Overall, it can be said that the work of a lawyer consists of the pairing between the abstract content of a norm (I) and a concrete factual case (II). To put it differently, this process is also known as the legal inference, which is based, in turn, on Aristotelian syllogism. In this framework, the jurist is an interpreter enabling the semantic transfer between (I) and (II). In the remainder of the article, some strategies will be analysed to limit the possible algorithmic drifts producing a stall in the legal discourse. In this respect, they can depart from the classic understanding of judge as bouche de la loi.Footnote 52 Although the law can be considered as a computational process, it can be exposed to computational systems’ inherent rigidity. In turn, it can lead to failures when they encounter real-world complexity, exceptions, or deviations from their predefined rules.

Mathematically, this rigidity can be represented by a function f that maps inputs (x) to outputs (y):

$$ y \, = \, f\left( x \right) $$

In a highly rigid computational system, this mapping is often one-to-one, with a narrow range of acceptable inputs and specific transformations leading to outputs. As noted above as per the example of the debtor, when x falls outside the predefined boundaries or the transformation process is sensitive to slight variations, failures occur.

Methodologically, the suggested strategies can be inscribed into the logic of trade-offs.Footnote 53 Yet they can dismiss a dichotomic approach that may either regard empowering state norms or—alternatively—fostering international cooperation. In contrast, their outcome tends to make the two aspects converge by reducing underlying transactive costs also in line with the equation concerning the reduction of friction. Accordingly, a uniform legal language would simplify the interactions with traditional legal systems and new technological advancements by enhancing the process in a fashion similar to that of legal transplants.Footnote 54 In so doing, the disputed issue of legal translation evolves into a more fluid semantic transfer. In turn, legal transfers depend on the notion of metaphorsFootnote 55 as they imply a semantic correspondence for a relation to be established. Hence, ‘legal transfer is conceived of as a transfer of information. Information ‘is a difference which makes a difference’, meaning that the information received has a certain importance to the receiving system […]. In order to facilitate a transfer process, certain ‘facilitators’ have to existFootnote 56.

This study does therefore hint at uniform legal language as facilitator because of its capability of filling the gaps together with the protection of fundamental rights including but not limited to freedom and dignity.Footnote 57 More precisely, the intersection of law and technology lacks uniformity when it comes to the individuation of new legal concepts—set on terms—that can properly accommodate new emerging circumstances. In this sense, a uniform legal language can concur to establish an effective interoperability between law and technology embedding aspects related to fundamental rights.

To come full circle, this process can be consonant with Horowitz’s Hermeneutic Contextualism given that it can more aptly determine the truth‐conditional content of metaphors. In turn, it essentially depends on the interpreter of an utterance and is thus closely tied to the subject and their interpretation.Footnote 58

In this context, reference can be made to Kantian logical use of understanding given the interplay between thinking and concepts.Footnote 59 As a result, this method can shape the progressive formation of the legal discourse as a registerFootnote 60 also containing new facets pertaining to technology through a more flexible usage of terms as fundamental linguistic units representing specific concepts or objects.Footnote 61

Further, De SaussureFootnote 62 aptly theorised the above in terms of general semiotics principles. He established a relation between the signifier (i.e. a word or concept) and the signified (i.e. the reference to which a given word or concepts hints at). As Searle puts it: ‘the semantic properties that contribute to content can be roughly reduced to the referential and the predicative meaning of expressionsFootnote 63’. To continue, uniform legal language’s flexibility would concur to reinforce the notion of parole in De Saussure’s theorisation in a time of continuous change. Indeed, parole is dynamic and variable, constantly evolving and adapting to specific contexts, while (legal) langue remains relatively stable and fixed over time.

figure b

By way of example, the diagram below shows this theory’s functioning establishing a relation between the abstract concept of justice (the blindfolded goddess—signifier) and its empirical equivalent (the courthouse—signified).

figure c

When considering the advent of blockchain networks it is self-evident that this paradigm is severely challenged as facts happen beyond or outside the realm of State normopoiesis. Under a formal standpoint, symbols and code are added to plain language producing a multi-layered framework wherein these three components converge.

Accordingly, the tripartition of state, law and statutesFootnote 64 and their roles is deemed to be re-framed. More precisely, it should be noted a re-emergence of Weberian GemeinschaftFootnote 65 in relation to the fluidity e-communities show.

As noted above, it is possible to grasp the ambivalence of both the law, and its prospective objects of regulation. Therefore, decision makers ought to develop a new, more fluid, dialectic approach for tackling the Fourth Revolution challenges. More specifically, humans, as organisms living in the ecosphere, are now adapting to the additional environment of the infosphere.

In this respect, the following classification of smart legal contracts will contribute to clarify the strategic importance of a standard legal language.

More precisely, they consist of the followingFootnote 66:

  1. (1)

    Naturallanguage contract with automated performance.

  2. (2)

    Hybrid contract.

  3. (3)

    Solely code contract.

Therefore, it should no surprise that a smart legal contract can assume the form below.

figure d

(Source: Smart legal contracts Advice to Government, UK, 2021). Against this background, it is now possible to argue that a uniform legal language can play a decisive role for coordinating law and innovation for two main reasons. First, smart legal contracts can be used to advance cross-border activities. Thus, a uniform legal language will concur to reinforce markets’ fluidity. Second, the jurist, as interpreter dealing with a lingua franca, will more aptly coordinate and thus reconcile the terms of (smart) legal contracts combining words, symbols and code. While smart legal contracts’ conditional logic structure is in line with today’s acceleration and efficiency, some doubts concerning the protection of fundamental rights remain as per the above-mentioned example of the debtor. Moreover, the absence of international private law regulatory framework supports these claims due the a-territorial nature of smart legal contractsFootnote 67.

As a matter of fact, the location-based principles, such as lex rei sitae, which have long guided international private law, struggle to adapt to the contemporary digital landscape. Legal scholars and practitioners face substantial difficulties in ascertaining where the location of a transaction resides when servers, data, and digital assets are spread across the globe.

This dispersion complicates the assignment of a singular location to international transactions, as data may traverse various servers, datacentres, and even national boundaries. The notion of a transaction's physical location, so pivotal to lex rei sitae, becomes increasingly elusive.

This long-standing principle in international private law, dictates that the law governing a transaction is determined by the location where the subject matter of the transaction is physically situated. This principle has been invaluable in resolving disputes involving immovable property. However, it encounters formidable challenges when applied to transactions reliant on dispersed servers. The traditional approach may no longer provide the clarity and predictability it once did.Footnote 68

In sum, a lingua franca may appear as a requirement to give consistency to legal narratives of the past in a future perspective. Overall, it aims at restoring justice when it comes to smart legal contracts, law, automation, and ultimately human agency. The thrust behind this assumption lies in the disputed matter of legal interpretation. From that standpoint, ‘the key to this issue lies in interpretation's dualistic nature, i.e. that it has both a backward-looking conserving aspect and a forwardlooking creative one. This dualism would seem to indicate that in interpreting the law, judges both seek to capture and be faithful to the content of the law as it currently exists, and to supplement, modify, or bring out something new in the law, in the course of reasoning from the content of the law to a decision in a particular case’Footnote 69. In such a case, constraintsFootnote 70 pertaining to the sphere of natural language and therefore extending to the sphere of legal register can be reasonably accommodated along with the multi-layeredFootnote 71 nature of forms of language.Footnote 72 To continue, a uniform legal language can fulfil through simplification Brachman’s principles of instantiation, individuation and denotation.Footnote 73 Therefore, the act of legal interpretation can also be regarded as an act of communication by means of the creation of a message.Footnote 74

As a consequence, it can concur to establish the basis for the re-qualification of existing legal ontologies.Footnote 75 In turn, they can be understood as ‘agreements about shared conceptualisations. Shared conceptualisations include conceptual frameworks for modelling domain knowledge; content-specific protocols for communication among inter-operating agents; and agreements about the representation of particular domain theories’.Footnote 76

A visual conceptual equivalent of this proposed method can be Pistoletto’s Third Paradise. This artwork does clearly depict and explain the tension among these instances, wherein legal interpretation can establish balance.

figure e

Hence, legal interpretation based on a standard legal language will contribute to grant recognition (in the Hegelian sense of AnerkennungFootnote 77) to concrete situations and players within blockchain networks as well as in the infosphere. Additionally, this process can overcome some possible representational barriers arising out of the separation between the meaning and the sense of an object as noted by Frege.Footnote 78

In other words, this framework represents a tool with which to enforce substantial equality given the multi-layered feature of language.Footnote 79 From one hand, this framework would first constitute a conceptual basis to restore a contemporary version of the scientia iuris capable of systemising—and yet not blurring—legal traditions. On the other hand, it might also temper the rigour of algorithmic determinism produced by software’s conditional logic.

For that reason, this theory can contribute to provide a methodological mean to overcome legal particularisms and/or lack of regulation at domestic and international levelFootnote 80.

Once more, the below adaptation of the Third Paradise illustrates this possible balance. Arguing with the Theory of Games, this suggested approach can be also seen as a Pareto improvement enabling the convergence of traditional law (yellow) and Lex CryptographiaFootnote 81 (blue) into the realm of recognition in the centre.

Building with De Saussure and Law and the Art, the resort to a shared legal language would bridge thorny issues of legal transplantFootnote 82 and facilitate the convergence of alphabetic and binary languages. From the one hand, this technique can ease the harmonisation between existing bodies of law and future forms of regulation, similarly to Roman praetorian lawFootnote 83. On the other hand, it would create the margin for introducing an equity-based legal reasoningFootnote 84 in line with natural law principles. As a result, it would also concur to frame new patterns of legal validityFootnote 85. From this perspective, the form of semantic integration descending from Pistoletto’s artwork fulfils Gadamerian Horizontenverschmelzung (i.e. fusion of horizons) as the merging between legal language and blockchain dimension yields an entirely new meaningful situation.Footnote 86 Along these lines, interpretation acts as ascription of meaning enabling the fitting of blockchain technology into the model (i.e. set of requirements) of the lawFootnote 87.Footnote 88

Practically, a standard legal language would first accommodate (1), (2), and (3).

In sum, this method may also represent an adaptation of Kelsen’s GrundnormFootnote 89. Firstly, it tackles the challenges of our epoch. Secondly, it can concur to establish a consensus ad idem given that (smart) contracts are forms of private governance.Footnote 90 In this perspective, this outlined use of a standard legal language can be understood as a requirement or an underlying basis over which to establish a renewed global legal systemFootnote 91.Footnote 92

figure f