Application of Blockchain in KYC Compliance

2020 ◽  
Vol 5 (7) ◽  
pp. 781-784
Author(s):  
Shashank R. B. ◽  
Chirag Chhabra ◽  
Nagaraj G. Cholli
Keyword(s):  
Smart Contracts ◽  
Advantages And Disadvantages ◽  
Current Process ◽  
Thomson Reuters

The current process of Know Your Customer (KYC) used by banks is time-consuming, expensive, and redundant in practice. A Thomson Reuters Research states that while banks globally spend around 60 million USD on an average, this number may go up to 500 million USD for some banks [1]. Hence, to improve the efficiency of this process, the use of a blockchain-based mechanism is suggested. The use of smart contracts also provides scope for adding features that cannot be achieved by the current process. The paper majorly discusses the advantages and disadvantages of using blockchain for performing KYC processes.

scholarly journals SMART CONTRACT AND CHALLENGES TO LAW

2020 ◽  
Author(s):  
Gergana Varbanova ◽  
Keyword(s):  
Civil Law ◽  
Smart Contracts ◽  
Program Code ◽  
Advantages And Disadvantages ◽  
Smart Contract ◽  
The Law

Are the technologies advanced enough to replace lawyers and the judiciary in the negotiation and enforcement process? Is it possible for a program code to be a contract that binds the parties named in it? What is a smart contract and what challenges does it pose to the law? The present study aims to clarify and show the advantages and disadvantages of using smart contracts in civil law.

scholarly journals DECENTRALIZED ELECTRONIC VOTING USING SMART CONTRACTS (DEV-SC)

2021 ◽  
Vol 16 (8) ◽  
Author(s):  
Urooj Waheed
Keyword(s):  
Good Governance ◽  
Single Point ◽  
Electronic Voting ◽  
Smart Contracts ◽  
Voting Systems ◽  
Advantages And Disadvantages ◽  
Distributed Ledger ◽  
Long Time ◽  
Dot Com

For a citizen, voting is the fundamental tool to bring change in the country for good governance, through electing suitable candidates or a party to give them the power to govern. There are many forms of elections be it in the democratic or monarch systems. Each way, the vote has the power to elect the next people’s representatives. For a long time, paper-based voting was the only system being used globally for years; after the dot-com bubble, many countries emerged with electronic voting. But the problems such as security, transparency, and integrity of elections and the voting process are still under question. The issue with paper-based voting was accessibility, voter turns around and tallies, electronic voting has its own advantages and disadvantages such as a single point of failure, trustful systems, and loopholes to forge the electronic voting systems to alter the outcomes. To solve the problems related to the electronic voting process security, integrity, and transparency, an advanced approach is required to adopt. With the advancement of technologies, 4th industry revolution technologies give us Blockchain, Distributed Ledger and Smart Contract types of technologies which may be beneficial to solve the current problems in electronic voting systems. In this paper, we proposed a research-based case study to implement Decentralized Electronic Voting using Smart Contracts (DEV-SC) to solve security, transparency, and integrity-related problems available in the electronic voting process. This will ensure and enhance the voting process easily, trustable, and verifiable.

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 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 kontrakty w prawie umów

2021 ◽  
Author(s):  
Krzysztof Kowacz ◽  
Kamil Wielgus
Keyword(s):  
Distributed Database ◽  
Smart Contracts ◽  
Advantages And Disadvantages ◽  
Legal Science

Chapter I of the paper focuses on introducing the reader to terminology relevant to the issues of smart contracts and distributed database (i.e. blockchain). It presents the historical and technical outline of these two technologies. The most important advantages and disadvantages (risks) associated with the use of these instruments in trading are briefly pointed out, and the reasons for the wide interest in the discussed technologies within the contemporary legal science are generally explained.

scholarly journals Shadow IT – Systematic Literature Review

2020 ◽  
Vol 49 (1) ◽  
pp. 144-160
Author(s):  
Lazar Raković
Keyword(s):  
Information Systems ◽  
Literature Review ◽  
Systematic Literature Review ◽  
Web Of Science ◽  
Electronic Library ◽  
Domain Experts ◽  
Advantages And Disadvantages ◽  
Thomson Reuters ◽  
It Departments ◽  
Shadow It

Shadow IT coexists with mandated information systems. Developed and applied by non­IT domain experts, it is as a rule, but not exclusively, used for resolving non­routine issues, for which mandated IS does not have appropriate functions. Shadow IT solutions are not supported or controlled by IT departments. The aim of the paper is to show to which extent shadow IT has been researched, as this area has not yet received the necessary attention from both academia and business. A systematic literature review was conducted in order to find the papers covering the topic of shadow IT. The following electronic databases were searched: Web of Science (Thomson Reuters), Scopus (Elsevier), and AIS Electronic Library (The Association for Information Systems (AIS)).  More than half of the analysed papers are case studies in one or more organizations. The papers were published mostly in scientific conferences and in scientific journals. Based on the literature review, the reasons for shadow IT occurrence, the possibility of its management, as well as its advantages and disadvantages are presented. The most important conclusions and views regarding shadow IT, according to the authors’ opinion, are indicated at the end. The limitation of a systematic literature review is that only papers published in English are analysed. Besides identifying papers covering the shadow IT topics, the reasons for the emergence of shadow IT, the possibilities of its management and its advantages and disadvantages are systematized.

scholarly journals Smart contract: from definition to certainty

2021 ◽  
Vol 1 (1) ◽  
pp. 100-122
Author(s):  
Yuriy Truntsevsky ◽  
Vyacheslav Sevalnev
Keyword(s):  
Social Relations ◽  
New Technologies ◽  
Theory And Practice ◽  
Information Support ◽  
Smart Contracts ◽  
Legal Definition ◽  
Advantages And Disadvantages ◽  
Smart Contract ◽  
Wide Range ◽  
Definition Of

The purpose of the present article is to gain an understanding of the opportunities and difficulties created by the introduction and development of the practice of network (smart) contracts. Our research methodology is based on a holistic set of principles and methods of scholarly analysis employed by modern legal science. It uses a dialectical method involving both general approaches (structural system method, formal logical method, analysis and synthesis of individual elements, individual features of concepts, abstraction, generalization, etc.) and particular methods (legal technical, systematic, comparative, historical, and grammatical methods, method of the unity of theory and practice, etc.). We analyze the views of lawyers and other specialists from Russia and abroad, legislative innovations in the field of digital technologies, the practice of blockchain-based smart contracts, and the main risks (whether legal, technological, operational, or criminogenic) of smart contracts for economic activities with a study of their causes. In the present-day situation, it is necessary to move from the legal definition of the smart contract and its legal and technological characteristics, advantages and disadvantages to the implementation of startups in a wide range of areas, especially business, public regulation, and social relations. Scholarly and information support for such processes will contribute to the development of industry, public administration and digital technology applications to improve the life of individual citizens and society as a whole. The introduction of smart contracts does not require the adoption of new laws or regulations. Instead, one should adapt and, possibly, modify existing legal principles at the legislative and judicial levels to pave the way for the use of smart contracts and other new technologies. The system of contract law provides a sufficient framework for regulating transactions without the introduction of any new legal categories. We propose approaches to the legal definition of the smart contract and identify a set of problems that must be solved at the legislative and technical legal levels in order to implement smart contracts effectively in different spheres of life.

Introduction of Blockchain and Usage of Blockchain in Internet of Things

2020 ◽  
pp. 1-15 ◽  
Author(s):  
Chandrasekar Ravi ◽  
Praveensankar Manimaran
Keyword(s):  
Internet Of Things ◽  
Data Centers ◽  
The Internet ◽  
Smart Contracts ◽  
Proof Of Concept ◽  
Access Management ◽  
Advantages And Disadvantages ◽  
The Common ◽  
The Internet Of Things ◽  
The Web

Since the advent of the web, the number of users who started using the internet for everyday purpose has increased tremendously. Most of the common purposes are to access their data whenever they want and wherever they want. So many companies have started providing these services to normal users. These companies store huge volume of data in the data centers. So protecting the integrity of the data is the main responsibility of these companies. Blockchain is one of the trending solutions that gives storage immutability to the users. This chapter starts with the working of blockchain and smart contracts and advantages and disadvantages of blockchain and smart contracts and then goes on to explain how blockchain can be integrated into the internet of things (IOT). This chapter ends with an architecture based on the proof-of-concept for access management, which is blockchain-based fully distributed architecture.

scholarly journals Blockchain technology in the workflow system of higher education institutions

2019 ◽  
Vol 31 (1) ◽  
pp. 229-238
Author(s):  
V. Vasiuta ◽  
M. Buniak
Keyword(s):  
Higher Education ◽  
Smart Contracts ◽  
Institutions Of Higher Education ◽  
Web Interfaces ◽  
Advantages And Disadvantages ◽  
Blockchain Technology ◽  
Workflow System ◽  
National Technical ◽  
Automation Systems ◽  
Theoretical Foundations

The article presents the results of a study of the theoretical foundations of the Blockchain technology. The analysis of the organization structure of its units and the principles of the system. Algorithms of smart contracts are considered and their advantages and disadvantages are analyzed. The purpose of the study is that based on the analysis of the theoretical foundations of building systems using blockchain technology and introducing them into various areas, to propose a system model using smart contracts on the Etherium platform for use in the workflow system in institutions of higher education. Convenient web interfaces for managing the creation of a contract and a module for the interaction of smart contracts with a Web application have been developed. The management of an institution of higher education, namely, a department, faculty or institute, involves the correct and timely preparation of various documentation, in which the documentation on student learning outcomes holds a special place. On its basis various financial and reporting documents are being prepared. To this end, institutions of higher education are introducing workflow system and office automation systems to manage the processing of documents, as well as to organize control over the implementation of these processes. The paper proposes the introduction of a blockchain system on the Ethereum platform using smart contracts written in the Solidity language. Solidity is a tool that is used to create machine-level code that can be run on an Ethereum Virtual Machine. Solidity allows you to create and execute a smart contract without requiring centralized or trusted parties. The use of such technologies makes it possible to significantly reduce the number of paper-based information carriers and, to a significant extent, further automate the existing the workflow system in institutions of higher education. The proposed system is a part of the workflow system of institutions of higher education, which is designed to automate the process of passing documents related to taking into account and submitting to the dean's office of the faculty or the institute the results of the final controls on academic disciplines or the results of retake of tests and exams. This process requires a large number of documents on paper. The proposed system is deployed in the local computer network of the Educational and Scientific Institute of Information Technologies and Mechatronics of Poltava National Technical Yuri Kondratyuk University and is being tested. The results allow us to draw conclusions about the reduction in the number of paper documents; time to obtain permits. In addition, the level of reliability and protection of information transmitted to the administration of the faculty or institute for further processing has increased. In the future, it is planned to introduce the proposed system for document flow automation for all institutes and faculties of the Poltava National Technical Yuri Kondratyuk University.

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.

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