Thomas Nägele has been involved with Bitcoin and Blockchain technology since 2011 and has also been providing related legal advice since the founding of our law firm in 2015.
"Blockchain technology" opens up many new possibilities for Liechtenstein legal users and entails enormous potential. However, the broad scope of application also beyond cryptocurrencies also represents a challenge for the Liechtenstein legal system.
The "blockchain technology" at a glance:
Behind the term "blockchain" is a specific technology of data storage and encryption, which essentially has a database structure. It is a continuously expandable list of data records, so-called "blocks", which are linked to each other by means of cryptographic procedures. Each block typically contains a cryptographically secure hash (also scatter value) of the preceding block, a timestamp, and transaction data. All the information from previous blocks is thus anchored in each data record in a specifically processed form. This serves as protection against manipulation and enables the detection and tracing of data manipulation. The blockchain itself is stored in a decentralized manner using so-called distributed ledger technology (DLT).
A distributed ledger is a data storage system that stores information (mainly about transactions) in a decentralized manner in a network of different participants and can basically only be influenced by the majority of the participants. In this "blockchain system", each computer integrated into the network is peripheral and equal. This is referred to as a "peer to peer network." Thus, there is no central computing unit that holds all the data of the participants. A decentralized ledger conveys stability, as a failure of one computer does not affect the functionality of the system.
Blockchain technology forms the basis of the existence of cryptocurrencies as well as many other applications that can be executed on the blockchain.
The wide scope of application of "blockchain technology" brings with it just as many resulting legal issues. In addition to further implications of token-based business models on the capital market or in the area of financial intermediaries, countless legal questions will arise in the future, for example in the areas of data protection, intellectual property law, tax law, criminal law and many other legal matters, and will have to be answered by legislation.
The "Blockchain Law" (TVTG) created by the Liechtenstein government creates legal certainty and clarifies essential legal questions in connection with blockchain technology. Thomas Nägele was involved in the drafting of this law.
We are happy to advise you on all legal issues related to blockchain technology. We may count ourselves among the leading law firms in this field in Liechtenstein.
We will gladly assist you by phone, email, or in person.