The application of the concept of consideration to smart contracts on a blockchain.

Abstract

The current research is devoted to the problem of the interpretation of the concept of consideration in Contract Law when applied to smart contracts executable on a blockchain. For these types of contracts, there exists a possibility where one of the key elements of a blockchain transaction, namely, gas payment, may, under certain conditions, qualify for the standard of valid consideration. Such a scenario may lead to a case where a gift from one contracting party to the other, executed via a smart contract on a blockchain, meets all the requirements for a contract - a situation that is impossible in Common Law jurisdictions since gifts are not recognised there as contracts precisely due to the 'lack of consideration'. The mentioned conundrum needs to be addressed. The current research describes this problem in detail, invites the audience to a debate and sets the directions for further discussions.