scholarly journals SMART CONTRACT AS A FORM OF CIVIL CONTRACT

2019 ◽  
pp. 15-20
Author(s):  
V. Varavka
Keyword(s):  
Information Technologies ◽  
Legal Status ◽  
Legal Regulation ◽  
Smart Contracts ◽  
Electronic Signature ◽  
Mathematical Algorithm ◽  
Blockchain Technology ◽  
Smart Contract ◽  
Civil Contract ◽  
Legal Force

Development of information technologies, cryptocurrencies and technology of distributed networks has caused the appearance of smart con- tracts as new types of civil contract. They have been widely used in recent years in such areas as initial coins offering (ICO), financial sector, inter- national trade and public services. At the same time the legal status and legal regulation of smart contracts are uncertain. These uncertainties cause many legal risks of smart-contractsutilization. The purpose of this article is to find out the conception of smart contract as a form of civil contract, to research its legal status and legal regula- tion issues and to develop proposals for the improvement of legal regulation of smart contracts and cryptocurrencies in Ukraine. By its legal nature a smart contract is a digital form of a civil contract realized in programming code automatically executed in a distributed network. Like a civil contract, smart contract has such elements as parties, subject and essential terms of the contract. The legal force of a smart contract depends on whether it includes the fundamental features of a civil contact, such as evidence that parties have intention to create legal relations, understandabil- ity of contract conditions and possibility to perform the terms of the contract under duress. The main advantages of a smart contract are its ability to significantly accelerate and reduce costs of the transaction and guarantee the fulfillment of contract terms regardless of the contractual parties' and third parties' will. The main risks of a smart contract are uncertainty of legal status of a smart contract and cryptocurrencies as a means of payment, complexity of expressing the contact terms in a mathematical algorithm, risk of software bugs and hacking attack. To solve the problems of legal regulation of smart contracts in Ukraine it is necessary to change the legislation in order to settle the legal status of cryptocurrencies and recognize a smart contract as a form of a civil contract. It is necessary to identify parties of the smart contract, confirm their agreement on the terms of the smart contract by using digital electronic signature. A smart contract should be supplemented by text application containing the es- sential terms of the contract which will have legal force in trail. It is necessary to implement blockchain technology in the state registers and pro- vide legal ability to make adjustments in the registers automatically for the performance of smartcontracts.

scholarly journals Smart Contract: The Concept, Legal Nature, Features of Conclusion and Execution

Legal Concept ◽  
2019 ◽  
pp. 54-60
Author(s):  
Nizami Safarli
Keyword(s):  
Russian Federation ◽  
Legal Regulation ◽  
Smart Contracts ◽  
Advantages And Disadvantages ◽  
Blockchain Technology ◽  
Smart Contract ◽  
Legal Nature ◽  
Domestic Legislation ◽  
The Russian Federation ◽  
Statutory Regulation

Introduction: the paper is devoted to a new phenomenon in business activity in the conditions of IT development that contribute to the creation of secure contractual relations on the Internet on the basis of transactions executed through smart contracts. The author notes that the need for amendments that could fill the loopholes in the current legislation is obvious. And, first of all, it concerns Blockchain technology – the algorithm that mediates the safe development, conclusion and execution of smart contracts. Blockchain technology is considered in the paper as one of the safest means for concluding and executing smart contracts. The author argues that the study of the concept, legal nature and essence of smart contracts is relevant in the light of spreading their share in the total array of transactions in the world economy in conjunction with the changing domestic legislation governing the relevant sphere, as well as the international integration processes affecting the intensification of foreign economic activity of the Russian Federation. The smart contract concepts formulated by the Russian legislator in the process of upgrading the array of statutory regulation under conditions of economy digitalization are studied and compared. The features of conclusion and protection of the smart contract in the civil legislation of the Russian Federation are analyzed. In order to fully articulate the concept of the smart contract, reflecting its essence, functional purpose and legal nature, it is proposed to create a special law that would focus on the conclusion and implementation of “the smart contract” and the specification of the general norms of the civil code. At the same time, the norms of other special laws would supplement and correct the provisions fixed by this act depending on the sphere of managing and the legal regulation branch. The concept of the smart contract is formulated; its value for economic and contractual activity, and also the advantages and disadvantages of its application are established. The possible classifications of smart contracts are given.

SMART CONTRACT: CONCEPT, LEGAL REGULATION, ASPECTS OF CONSUMER PROTECTION

2021 ◽  
Vol 14 (4) ◽  
pp. 236-247
Author(s):  
IRINA VIKTOROVNA ERMAKOVA ◽  
◽  
◽  
Keyword(s):  
Social Relations ◽  
Legal Status ◽  
Legal Regulation ◽  
Fundamental Rights ◽  
Smart Contracts ◽  
Legal Norms ◽  
Legal Relationship ◽  
Smart Contract ◽  
The Subject ◽  
Definition Of

The subject of the research is legal norms aimed at regulating by law relations in the field of concluding and executing smart contracts, including issues of protecting the rights of the parties to such contracts, including consumers. The object of the research is social relations arising in the process of creating, concluding and executing of smart contracts. Particular attention is paid to the theoretical and practical aspects of the definition of the concept of “smart contract” and its essence, as well as its legal status. In addition, the article considers approaches to defining the essence of institutions that are closely related to the category of “smart contract”, such as “cryptocurrency”, “digital ruble”, “mining”. The aspects of the protection of fundamental rights of the parties involved in the considered legal relationship, including consumers, are also analyzed. Examples of court decisions regarding the corresponding category of cases are given. The novelty of the research lies in determining the current approaches in relation to the essence, concept and legal status of smart contracts, including the current position of law enforcement practice in relation to this issue. In addition, the novelty of the study lies in considering the practical aspects of the conclusion and execution of smart contracts, including, indicating examples of blockchain platforms on the basis of which smart contracts can function. Ultimately, the study led to the development by the author of some proposals in order to improve the relevant legislation. In particular, the author proposed to consolidate at the legislative level the legal definition of the concept of “smart contract”, indicating the appropriate wording.

scholarly journals Smart-Contracts in the digital economy: Contractual regulation and dispute resolution

2021 ◽  
Vol 2 (4) ◽  
pp. 40-50
Author(s):  
S. A. Sinitsyn ◽  
M. O. Diakonova ◽  
T. I. Chursina
Keyword(s):  
Legal Regulation ◽  
Self Control ◽  
Third Party ◽  
Physical Contact ◽  
Smart Contracts ◽  
Digital Platforms ◽  
Blockchain Technology ◽  
Smart Contract ◽  
Materials Used ◽  
Automatic Code

This article has been prepared for the research purpose of identifying, disclosing, and justifying certain trends in the development of civil law and procedures in the context of the spread of smart contract practices and the expansion of their spheres of application. At the moment, there is no uniform approach to choosing an optimal form for the legal regulation of smart contracts within the system of contract law in modern legal systems or international law; meanwhile, globalization and the digitalization of the economy imply the growth of cross-border transactions. The emergence of smart contracts is due to the development of e-commerce, in which the parties’ interactions are carried out electronically instead of in physical exchanges or direct physical contact. Smart contracts gaining popularity in circulation are based on two interrelated elements: firstly, they eliminate a person’s direct participation in some or all cases of executing the agreement using an automated code designed for execution without reference to the intentions of the contracting parties after publication; secondly, they make use of decentralized blockchain technology, and also provide automatic code execution without any party’s potential intervention, so as to eliminate or reduce the self-control and third-party control of the commitment.This study examines the content, conclusion, validity, protection of rights and legitimate interests of the parties, interpretation, and legal nature of smart contracts. The research materials used foreign experience in resolving disputes from smart contracts on digital platforms (Kleros, JUR, Aragon Network Justice, OpenCourt, OpenBazaar), as well as domestic and foreign literature on smart contracts. This research has been prepared based on general (deduction, dialectical analysis, intersectoral relations of objects) and specialized (comparative-legal, economic-legal) methods of scientific experimentation.The authors conclude that there are no grounds for considering a smart contract as a new classification element of the system of contractual regulation (type or kind of contract). In addition, the analysis shows that the resolution of smart contract disputes through digital platforms remains radically uncertain, and currently is not creating obvious advantages in comparison with traditional judicial proceedings.

Smart Contracts

2020 ◽  
pp. 127-135
Author(s):  
Michael Casparus Laubscher ◽  
Muhammed Siraaj Khan
Keyword(s):  
Legal Status ◽  
Legal Profession ◽  
Smart Contracts ◽  
Advantages And Disadvantages ◽  
Blockchain Technology ◽  
Smart Contract

When Nick Szabo pioneered the idea of a smart contract in the 1990s, the economic and communications infrastructure available at that time could not and did not support the protocols needed to execute and apply smart contracts. While smart contracts may be viewed as an example of the use of blockchain and blockchain technology which offers great opportunities to the field of law; others are more sceptical. The use of smart contracts in law is anything but straightforward, but this should not deter jurists from investigating the opportunities this instrument offers. This chapter aims to provide an overview of smart contacts, explaining how they work, the ways they differ from written contracts, their legal status, and the advantages and disadvantages associated with using them. Finally, it identifies the main challenges facing businesses and the legal profession with regard to the expanding use of smart contacts.

scholarly journals Legal status of smart contracts: features, role, significance

2019 ◽  
Vol 15 (1) ◽  
pp. 285-300
Author(s):  
Elena Anatolyevna Kirillova ◽  
Varvara Vladimirovna Bogdan ◽  
Igor B. Lagutin ◽  
Evgeniy Dmitrievich Gorevoy
Keyword(s):  
Digital Signature ◽  
Critical Analysis ◽  
Legal Status ◽  
Artificial Language ◽  
Smart Contracts ◽  
Program Code ◽  
Blockchain Technology ◽  
Smart Contract ◽  
And Control

This article using critical analysis discusses the legal status of smart contracts, their features and characteristics, and the possibility of introducing this category into the legal field. The main goal of the study is to determine the legal status of smart contracts. The study concludes that a smart contract is a program code based on blockchain technology, which, by legal characteristics, is a legally significant message recorded in a language (artificial language) and sealed with an electronic digital signature of each of the parties (or certified with a special key). It is proved that the multilateral interactions implemented through smart contracts can reduce the costs of operations and control them, increase the speed of operations and reduce the risks associated with dishonest actions of the parties, minimize or completely exclude intermediaries from the transaction; therefore, legislation should provide for the possibility of using smart contracts along with existing contracts.

scholarly journals Legal regulation of smart contracts in France

2019 ◽  
pp. 151-158
Author(s):  
D. V. Chub
Keyword(s):  
Legal Status ◽  
Legal Regulation ◽  
Smart Contracts ◽  
French Law ◽  
Legal Doctrine ◽  
Economic Relations ◽  
Smart Contract ◽  
Legal Obligations ◽  
Characteristic Features ◽  
Definition Of

The paper is devoted to the legal regulation of smart contracts in French law. The question of the admissibility of the use of smart contracts in economic relations is considered. Particular attention is given to the French legal doctrine in the issue of formulating the definition of “smart contract” and identifying its characteristic features, the various points of view of French legal scholars are compared. Examples of the most effective use of a smart contract in economic relations are given. The problems of applying contractual legal obligations and obligations of French law to smart contracts are considered. The importance of the oracle for the implementation of the smart contract and the features of its legal status under French law are disclosed.

scholarly journals LEGAL RISKS OF SING DIGITAL TECHNOLOGIES IN BANKING

2019 ◽  
pp. 32-39
Author(s):  
V. M. Kamalyan
Keyword(s):  
Digital Technologies ◽  
Legal Regulation ◽  
International Standards ◽  
Smart Contracts ◽  
National Legislation ◽  
Blockchain Technology ◽  
Smart Contract ◽  
Legal Risks ◽  
Proceeds Of Crime ◽  
Financing Of Terrorism

Based on the analysis of legal risks of using smart contracts in banking activities, the author concludes that there is a need for special legal regulation of the use of digital technologies in banking, which would minimize the legal risks examined in the paper. The author believes that such legal regulation in order to minimize legal risks should define a smart contract as a way of fulfillment of obligations rather than as a design of a contract concluded in writing. Analyzing the legal risks associated with the person identity during the introduction of digital technologies in banking, the author suggests the use of blockchain technology as the basis of the system of identification of customers using exclusively the advantages of this technology in compliance with the requirements of international standards and national legislation regulating counteraction to laundering of proceeds of crime and financing of terrorism. This solution will simplify and protect the system of identification and processing of data regarding the clients of banks, but it requires effective state support and legal regulation.

A Study of Use Cases for Smart Contracts Using Blockchain Technology

2021 ◽  
pp. 1823-1844
Author(s):  
S R Mani Sekhar ◽  
Siddesh G M ◽  
Swapnil Kalra ◽  
Shaswat Anand
Keyword(s):  
Natural Disaster ◽  
Vital Role ◽  
Use Cases ◽  
Use Case ◽  
Smart Contracts ◽  
Digital Identity ◽  
Blockchain Technology ◽  
Smart Contract ◽  
Healthcare Finance ◽  
Natural Disaster Management

Blockchain technology is an emerging and rapidly growing technology in the current world scenario. It is a collection of records connected through cryptography. They play a vital role in smart contracts. Smart contracts are present in blockchains which are self-controlled and trustable. It can be integrated across various domains like healthcare, finance, self-sovereign identity, governance, logistics management and home care, etc. The purpose of this article is to analyze the various use cases of smart contracts in different domains and come up with a model which may be used in the future. Subsequently, a detailed description of a smart contract and blockchain is provided. Next, different case-studies related to five different domains is discussed with the help of use case diagrams. Finally, a solution for natural disaster management has been proposed by integrating smart contract, digital identity, policies and blockchain technologies, which can be used effectively for providing relief to victims during times of natural disaster.

scholarly journals Advantages and disadvantages of smart-contracts as the basis for the emergence of ownership

2021 ◽  
pp. 101-105
Author(s):  
K. Nekit
Keyword(s):  
Property Rights ◽  
Legal Aspect ◽  
Legal Regulation ◽  
Third Party ◽  
Smart Contracts ◽  
Advantages And Disadvantages ◽  
Technical Errors ◽  
Smart Contract ◽  
Legal Nature ◽  
Definition Of

The article examines the concepts, legal nature of smart contracts, as well as the advantages and disadvantages of smart contracts as a basis for ownership. The technical and legal aspect of the concept of smart contract is considered. Models of using smart contracts are described. Approaches to determining the legal nature of smart contracts are presented. It is concluded that two models must be considered when using smart contracts. The first model is external, when the program code does not replace the agreement, but only automates its execution. The second model is internal, when the code completely or partially replaces the terms of the agreement. Among the advantages of smart contracts as grounds for the emergence of property rights can be identified, first of all, the inability to change the terms of the contract and interference in its work. However, at the same time, this feature is a disadvantage of the smart contract, as it does not allow to take into account the objective circumstances that may affect the implementation of the agreement. The problem of oracles when using smart contracts is also considered. It is noted that the use of oracles actually means the involvement of a third party in the transaction with all the risks that arise from it. The problem of involving notaries and state registrars in transactions on acquisition of property rights on the basis of a smart contract is analyzed. The problems of lack of legal regulation of smart contracts, in particular, related to its transnational nature, is investigated. The problem of protection of the rights of the parties to the smart contract is analyzed, in particular, related to technical errors and outside interference. Temporary solutions regarding the use of smart contracts and general recommendations on the legislative definition of smart contracts are proposed.

scholarly journals Need for Legal Regulation of Blockchain and Smart Contracts in the Shipping Industry

2020 ◽  
Vol 9 (2) ◽  
Author(s):  
Marko Perkušić ◽  
Šime Jozipović ◽  
Damir Piplica
Keyword(s):  
Complex System ◽  
Human Factor ◽  
Legal Regulation ◽  
Smart Contracts ◽  
Shipping Industry ◽  
The European Union ◽  
Existing Problems ◽  
Blockchain Technology ◽  
Potential Impact ◽  
Insight Into

The paper analyzes the potential impact of blockchain technology and smart contracts on the shipping industry. As the shipping industry represents a complex system of various actions that have to be controlled and registered, blockchain technology could serve as a tool to allow the streamlining of numerous processes, whilst at the same time taking the human factor out of multiple elements where trust between involved parties is an issue. The authors therefore first present how blockchain technology works and what smart contracts are, in order to give an  insight into their applicability in the shipping sector. After a general overview of the technological and legal characteristics of blockchain technology and smart contracts, the authors present examples of relevant subjects, relations, and contracts in the shipping industry. Based on the charter party, a key contract in the shipping industry, the authors present the existing problems which could potentially be solved using blockchain technology. Besides the benefits of blockchain technologies, the authors furthermore point out the existing deficiencies that still make blockchain technology hard to apply in legal relations within the shipping industry. Based on these insights, the authors highlight the current developments in this area and present the existing and expected regulatory reforms of blockchain solutions and smart contracts within the European Union.

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