Hossein Nabilou

Transaction finality in blockchains: legal considerations

This article examines the settlement finality in a subtype of blockchains that relies on probabilistic settlement finality. Having studied transaction finality in blockchains, both from a private law and regulatory law perspectives, this article finds that the main difference between settlement in blockchains and those in traditional finance is the absence of intermediaries to whom the legal obligations and liabilities could be assigned in case of settlement fails. In the absence of such intermediaries, the regulatory law may be hesitant to give effect to settlement finality in such blockchains.