Pioneering legal framework for BSV Blockchain ensures stability, security, and growth

In a ground-breaking collaboration, members of 3 Hare Court Chambers and D2 Legal Technology (D2LT) have played a crucial role in advising the BSV Association on the creation of innovative Network Access Rules. These rules are set to revolutionise the contractual framework governing the activities of nodes on the BSV blockchain, enhancing the security, integrity, and long-term stability of its operations.

The BSV blockchain is dedicated to realising the vision of the original Bitcoin protocol rules, focusing on stability, scalability, security, and safe instant transactions. The newly established Network Access Rules serve as a pivotal component in achieving these objectives. They provide a transparent and reliable legal framework for mining activities, operating as a multilateral contract between the BSV Association, acting as the network steward, and all participating nodes.

Jeffrey Golden KC (Hon), James Gale, and Nicholas Leah from 3 Hare Court Chambers, alongside Akber Datoo, Lisa McClory, and Emma Wooldridge from D2 Legal Technology, brought their expertise to shape these rules. The aim is to ensure that the original Bitcoin protocol remains immutable, impervious to alterations by any single entity. Simultaneously, the rules enable the BSV Association to implement necessary regulations, such as Digital Asset Recovery, ensuring compliance with existing regulatory requirements.

Connor Murray, Director of Stewardship at BSV Association, expressed gratitude to the advisory teams for their remarkable work on the Network Access Rules. He highlighted the importance of codifying these rules into a clear legal framework to maintain the integrity of the BSV blockchain.

James Gale emphasised the governance challenges faced by decentralised networks, citing the difficulty of combating cross-border crypto fraud. The Network Access Rules address this concern by incorporating an arbitral process and enforcement mechanisms, providing a streamlined approach to dispute resolution and enhancing global legal compliance across the network.

Drawing on their expertise in multilateral contracts within the capital markets context, the advisory team collaborated closely with the BSV Association. The result is an innovative solution that leverages their understanding of relational contracts and blockchain technology.

Jeffrey Golden KC (Hon) noted that the Network Access Rules draw inspiration from established precedents in derivatives and global financial markets. Akber Datoo, CEO of D2LT, underscored the effectiveness of these rules in providing clear processes for mining activities, enhancing network security, and ensuring stability and efficiency.

In a joint conclusion, the interdisciplinary team expressed delight in contributing to the creation of the Network Access Rules. They believe that these rules will pave the way for the BSV blockchain to grow steadily, with certainty and transparency—an imperative for broader adoption by enterprises and governments in the realm of blockchain technology.