An assessment of the potential for legal redress for systematic errors in unpermissioned blockchain technology under English law

This thesis focuses on the potential for legal redress to be afforded to users who suffer loss resulting from transactions impacted by systematic errors in unpermissioned blockchains. Blockchain technology, which enables a cryptographically secure form of record keeping, is an emerging topic that has the potential to be adopted in many contexts, notably in cryptocurrencies. Unpermissioned blockchain technology provides a unique and decentralised technology in which anyone can participate or alter, and it gives rise to questions as to its compatibility with traditional legal frameworks. The regulatory landscape concerning unpermissioned blockchain technology has hitherto largely focused on the issue of money laundering via cryptocurrencies. However, this has resulted in limited legal protection for users in respect of liability for systematic errors. This thesis will explore the potential for development of the current English legal framework to enable protection to users who suffer loss attributable to systematic errors. Further to this, there shall be the exploration of creative legal solutions for regulating unpermissioned blockchain with the aim of enhanced clarity and legal protection for users in three different contexts: peer to peer, cryptocurrency exchange and DeFi exchange transactions. The public are most likely to encounter unpermissioned blockchain technology in these contexts, through cryptocurrency trading, and therefore risks in each instance may present the most likely case for regulation. Employing a decentred view of regulation, Ostrom’s self-management principles are drawn upon as one potential model of self-regulation that might be adapted for unpermissioned blockchain technology