Features of the Legal Status of a Smart Contract in the Context of Digitalization

Abstract

In this article, the authors consider the features of smart contracts as a fundamentally new model of contractual relations, relevant in view of the comprehensive digitalization of various spheres of life. Smart contracts are considered as the so-called self-executing contracts, in which the terms of the agreement between the buyer and the seller are directly spelled out in lines of code. At the same time, the code and the agreement associated with it exist in a distributed decentralized blockchain network. Smart contracts guarantee a very specific set of results, which makes it possible not to resort to litigation, in fact, avoiding conflict situations. The authors analyze various types of smart contracts, problems associated with changing the terms of a smart contract, and limitations connected with the use of such a model of contractual relations. The article draws attention to the fact that the automated execution of the terms of the contract will cause problems, because the lines of code, unlike a traditional written contract, cannot be changed with the same ease. In conclusion, the authors discuss the impact of digitalization processes on the development of smart contracts.