Smart contracts represent one of the most promising applications of blockchain technology, offering the potential for self-executing agreements that reduce costs and increase efficiency. However, their implementation raises significant legal questions.

The primary challenges include:
- Contract formation and validity
- Dispute resolution mechanisms
- Regulatory compliance
- Cross-border enforcement

Different jurisdictions are taking varied approaches to smart contract regulation. Some, like Malta and Switzerland, have created specific frameworks, while others are adapting existing contract law.

The key to successful smart contract adoption lies in creating legal frameworks that provide certainty while allowing for innovation. This requires collaboration between technologists, lawyers, and regulators.