Blockchain-Based Smart Contracts: Legal Certainty and Regulatory Implications

The rapid development of blockchain technology has given rise to a new instrument in contract law practice known as smart contracts, namely computer protocols capable of automatically executing, monitoring, and enforcing agreements between parties without the involvement of intermediaries. The presence of this technology raises a number of fundamental legal issues, particularly regarding the validity of contracts, the position of program code as a representation of the parties' will, and its compliance with the principles of conventional contract law. This article aims to analyze the position of blockchain-based smart contracts within the framework of contract law, both from the perspective of international law and Indonesian positive law, and examine their regulatory implications for the current legal system. This research uses a normative juridical method with a statutory approach, a conceptual approach, and a comparative approach to various jurisdictions that have developed regulatory frameworks for smart contracts. The results show that although smart contracts are technically able to fulfill some elements of the validity of agreements under civil law, significant regulatory gaps remain regarding the legal recognition of code as a contract, dispute resolution mechanisms, the allocation of legal responsibility for system failures, and consumer protection in blockchain-based transactions. This article recommends the need for regulatory harmonization that is responsive to the technical characteristics of blockchain without sacrificing the fundamental principles of contract law, including the principles of consensualism, good faith, and protection of the weak party

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