David Nadler Prata, H. X. Araujo, Cleórbete Santos
This work begins with an explanation of fundamental concepts about Bitcoin and Blockchain and then explores the main definitions of smart contracts in the updated literature, demonstrates some categories of smart contracts, explores the most widely used platforms that support smart contracts, and gives greater prominence to the Ethereum platform for its more robust characteristics regarding the creation and storage of this type of contract. It then concludes by demonstrating the advantages of smart contracts in relation to traditional contracts, as well as addressing their legal validity.
Irina Astrakhantseva, Roman Astrakhantsev, Alexey Los
The article focuses on the relevance of establishing legal norms for virtual currency, which is currently working in the gray zone. The article substantiates why cryptocurrency was referred to other property in the framework of civil law. The author suggests a definition of cryptocurrency to introduce it into legislation. Attributes of cryptocurrency theft are considered. The most attention is given to fraud, in particular different types of cryptocurrency phishing, and possible ways of criminal prosecution for cryptocurrency theft.
Abstract: The article is devoted to a new phenomenon for the Russian legal and economic space – the smart contract. The author of the article, based on the novel of Part 2 of Article 309 of the Civil Code of the Russian Federation, considers the dynamics of a civil obligation that is fulfilled through the use of information technologies. Thus, the article structurally highlights the parts devoted to the actual dynamics itself, the stage of occurrence of an obligation mediated by a smart contract; the stage of performance of such an obligation through the prism of the principles of performance; as well as the stage of termination of the obligation under study. The paper shows three main scientific approaches that reflect the mechanism of occurrence of an obligation that is fulfilled through the use of information technologies; the legal characteristics of click-wrap and browse-wrap agreements are given; the specifics of the known principles of performance of obligations in the performance of obligations using information technologies are reflected; it is concluded that it is necessary to adapt the law of obligations to digital realities, which is possible without a radical "breaking" of the pandect system of Russian civil law and the key approaches of the legislator to the main legal instruments of civil law.
П А Команов, Х Ю Ревазов, Д А Тавасиев, Пальмов, С.В.
В настоящее время технологии блокчейн находят высокий спрос в разных сферах. Широкое применение находят и смарт-контракты, которые записываются в блокчейн. Наибольшую популярность на данный момент имеют приложения, написанные с помощью смарт-контрактов на платформе Ethereum. Смарт-контракты, как и обычные программы, подвержены различным уязвимостям. В статье будут рассмотрены серьезные уязвимости, методы и инструменты, которые были менее освещены в сферах информационной безопасности и IT, но имеющие огромный потенциал в области обеспечения безопасности смарт-контрактов. Основная цель данной статьи заключается в том, чтобы дать представление об актуальных и серьезных уязвимостях в смарт-контрактах Ethereum и на основе актуальных угроз подобрать актуальные методы по обеспечению безопасности смарт-контрактов на платформе Ethereum.
Decentralized finance is a decentralized network based on smart contracts of blockchain technology and specific decentralized applications (DAPPS). It not only can enhance users' information privacy and transaction equity, but also has incomparable advantages in protecting asset security, reducing financial cost and de-trust. The opportunities of decentralized financial development include: Solving the problem of information asymmetry in traditional financial transactions; Providing safe and convenient asset management and inclusive finance; Promoting the formation of broader global financial services. In order to better promote decentralized finance development, we need to actively follow and embrace its progress trend; Establish "weakly centralized" structure based on Consortium Blockchain; Strengthen international coordination and cooperation of RMB; Improve the regulatory systems and relevant laws and regulations.
The article focuses on the relevance of establishing legal norms for virtual currency, which is currently working in the gray zone. The article substantiates why cryptocurrency was referred to other property in the framework of civil law. The issues of referring cryptocurrency to such objects of civil rights as monetary funds, currency values, securities, intellectual property, intangible assets, etc. are considered in detail. Based on a comprehensive analysis, the classification of cryptocurrency as a different property within the framework of civil law is substantiated. The author's definition of cryptocurrency is given as a cryptographically protected property with signs of cryptographic authentication, decentralization, management through consensus, and the use of distributed ledgers. The economic essence and legal status of the cryptocurrency proposed by the authors emphasize the exclusively digital version of the existence and use of this object, indicates the possibility of the turnover of this asset, delimits the concept of cryptocurrency, non-cash and electronic money. The definition of a crypto asset as property makes it possible to develop tax legislation, since the implementation of cryptocurrency is close to investment instruments, which makes it possible to clarify the issue of paying such a tax as VAT. Cryptocurrency as property describes not the thing itself, but the legal relations associated with it, that is, those rights that, according to the rules of law, can be exercised. The article also raises one of the main issues that must be resolved - this is the recognition of ownership of this specific type of property. According to the authors, the starting point for determining the ownership of the cryptocurrency should be that the subject of the right will be the owner of this asset if he legally gained access to the private key by analogy as the subject acquired the ownership of a tangible asset on a legal basis.
The article describes involvement of modern technologies in combating corruption and their actuality in the current digitalization of the world. Such ICT tools as Digital government services, Big Data Technologies, Distributed ledger technologies (DLT) and blockchain, data mining, crowdsourcing technologies, analytical (Forensic) tools and electronic systems for verification of income declarations, as well as foreign experience of their usage and implementation are thoroughly examined.
Digital transformation of the world economy and the rapid growth of information flows have led to the implementation of innovative technologies in the processes of business management. Data analysis, risk assessment technologies and decision support systems enable companies to adapt to modern challenges.In the process of globalization, a consumer has the priority due to which quality of service and timely delivery of the required products determine the competition among the companies. All participants of the supply process, including logistics service providers, have traditionally focused on optimizing process management and minimizing supply chain costs [1]. The determining factor of supply efficiency from the perspective of procurement and logistics is the uninterrupted supply of raw materials and semi-finished goods that depends on the selection of a reliable supplier, as well as the continuous improvement of the quality of materials and the reliability of the customer-supplier relationship. The purpose of this article is to analyze use of blockchain technology to improve reliability of supply chains, whereas the rationale behind the management of business processes and the contractual obligation between the parties are verified cryptographically, using a smart contract.
The paper analyzes the legal status of the consumer when concluding and executing a smart contract. The author proves the existence of special risks for citizens associated with the conclusion and execution of a smart contract. In particular, the author considers the risk of a consumer’s misunderstanding of the terms of a smart contract, the risk of a difference between the terms of a smart contract and the terms of a contract set forth in the natural language, the risk of including in a smart contract conditions that infringe on consumer rights (unfair contractual terms), as well as special manifestations of regulatory and operational risks in relation to a smart contract. Currently, in the Russian Federation, as in most foreign jurisdictions, there are no special legal mechanisms aimed at protecting consumer rights from these risks. The “general” mechanisms of consumer protection existing in the Russian jurisdiction are insufficient. Considering this, the author proposes mechanisms for each risk aimed at minimizing its implementation and negative impact on the citizen. The following risk-oriented approach to regulating relations when concluding a smart contract with the participation of a consumer is proposed. A citizen can conclude transactions using a smart contract subject to legislative limitation of his potential losses under a transaction (limiting the transaction price) and the introduction of the proposed legal regulation aimed at minimizing the risks discussed in the paper.
The purpose of this article is to analyze methods, approaches, and tools of distributed ledger technology (DLT) for working with documents in education. The objectives of the article are to analyze problems with the authentication of educational documents, develop new structural solutions using block chain technology, consider two models, and evaluate their use for educational documents. Authentication of educational documents is carried out using state registers, which is a complex and resource-intensive process. There is an increase in the number of forged documents in the world, which calls into question the effectiveness of modern mechanisms. Distributed ledger technology (block chain) is a sustainable technological trend that affects the development and quality of the digital economy. The existence of a mechanism for verifying the authenticity of educational documents that is resistant to malicious manipulation is an urgent task that goes beyond the sphere of education, possible solutions to which are proposed to be considered in this paper. The article provides a brief description of DLT and considers the approach of using the technology to authenticate educational documents. It consists of two main stages: the issue of a digital educational document and its verification. The role of a trusted third party in the issue and validation process is considered. The paper presents the models for issuing and validating digital documents based on distributed ledger technology, which allows one to eliminate the limitations and shortcomings of existing approaches. The effectiveness of the approach based on the proposed models is revealed. The formulated approaches can be applied in various socio-economic areas and public administration to work with similar documents.
The article explores the dialectic of determining the legal status of cryptocurrencies. Digital technologies are considered specifically for their application in the financial sector. The features of the use of digital technologies in various countries of the world are analyzed. Due to the variability of the legal regulation of digital technologies, the complex nature of their implementation is noted, which is not reduced to a simultaneous behavioral act. It is concluded that there is no universal way to sell cryptocurrencies in the financial market. The analysis of existing scientific approaches to understanding the concept of cryptocurrency, bitcoin is carried out. The article examines the digital technologies used in the financial sector, which include virtual currencies and — like their kind of cryptocurrency. The cryptocurrency status is not defined, however, there is the prospect of normative fixing it on the territory of the Russian Federation.
This article is devoted to the consideration of issues related to the legal regulation of cryptocurrencies in the Russian Federation and some foreign countries. In the course of the study, the features of cryptocurrencies were highlighted, various approaches to the definition of this category were considered, some aspects of the legal regulation of digital currencies were analyzed. It has been determined that the rules of financial law regulate a whole range of public relations related to the use of cryptocurrencies and the complex regulation of this institution is necessary. The author came to the conclusion that it is necessary to use digital technologies and digital currencies in the Russian economy in the future. At the same time, this is a complex and not an instantaneous process of transition to digital currencies; a clearly thought-out strategy for the development of legislation in this area is necessary.
The articles focuses on opportunities and problems connected with implementation of smart contracts into “over-the-counter” derivatives trading. The importance of success of professionals who work on this cannot be underestimated: the volume of “over-the-counter” derivatives market is huge, its automatization and transparency provided by implemented smart contracts could dramatically increase its economic efficiency. In this study, the author aims at answering the following question: what aspects of “over-the-counter” derivatives trading could take a quantum leap because of the implementation of smart contacts and, per contra, what aspects could not benefit from implementation of underlying technologies at all. The author starts with the overview of “over-the-counter” derivatives market, investigates the matter of its internal design, main features and the structure of legal documentation used by market participants. Then the article provides the analysis of smart contract phenomenon, summary of its engineering aspects and difficulties connected with the implementation of smart contracts as a practical matter, including underlying legal issues. The third part is a synthesis of ideas indicated in previous parts. Herein the author examines the perspectives of adoption of smart contracts in “over-the-counter” derivatives trading, identifies the problems that cannot be resolved yet: different parts of legal relations existing between market participants shall be structured in a flexible way and shall be subject to revision under specific conditions. Smart contracts in their turn cannot be considered as a flexible tool and the revision of their terms requires the input from highly experienced specialists that dramatically increases the costs of their implementation and maintenance. As a matter of conclusion, the author gives recommendation to potential developers of smart contacts to implement them only in relation to the automatization of payments and deliveries as at the moment the clearing can be considered as the most appropriate area for the implementation and use of smart contracts.
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.
Pamateni ugovori kao vrsta digitalnog i računalnog izvršavanja neke njemu specificirane programske logike mogu poslužiti u raznim primjenama gdje sudionici ne vjeruju jedan drugome i potreban im je posrednik ili decentralizirani medij kao blockchain gdje nitko neće imati kontrolu, a pametni ugovor će se svejedno moći izvršiti. Pametni ugovori imaju usku funkcionalnost ako se samo bave onim što se događa na blockchainu, ali ako ih želimo povezati sa vanjskim svijetom potreban je entitet imena Oracle, koji služi kao poveznica sa informacijama iz vanjskog svijeta i operacijama koje se jedino mogu izvršavati izvan blockchaina (npr. slanje novca preko bankarskog sustava itd.). Mi smo koristili Chainlink decentraliziranu Oracle mrežu i njihovu tehnologiju da bi povezali pametne ugovore sa vanjskim svijetom. Kreirali smo mobilnu i web aplikaciju te ih povezali sa pametnim ugovorom kreiranim na testnom Kovan Ethereum blockchainu. Funkcionalnost tog pametnog ugovora je bila a registrirani korisnici mogu prelaziti zadane rute te biti sigurni da će njihovi lokacijski podaci nastali prilikom izvršavanja rute na siguran način obraditi i biti upisani na blockchain pomoću Chainlink čvorova tj. operatora koji su uz pomoć dodatkovnog programa (eng. Data Adapter) procesirali i obradili te lokacijske podatke.
Человеку по своей природе свойственно все упрощать и оптимизировать процесс своей работы. Изобретение компьютера и вычислительной техники позволили людям упростить и облегчить математические вычисления. Очередь оцифровывания добралась и до договорного права. В настоящей статье автор на основе гражданского законодательства Российской Федерации и зарубежных стран проводит анализ возможности применения смарт-контракта и юридические последствия его использования. It is human by nature to simplify and optimize the process of his work. The invention of the computer and computing technology allowed humans to simplify and facilitate mathematical calculations. The line of digitization has also reached contract law. In this article, the author analyzes the possibility of using a smart contract and the legal consequences of its use based on the civil legislation of the Russian Federation and foreign countries.
The article analyzes the possibility of including one of the types of digital rights of cryptocurrency as a potential object of bankruptcy estate. It is concluded that it is possible to include cryptocurrency, which is stored in a cryptocurrency wallet in the electronic system into the bankruptcy estate up to its real value with which creditors’ claims can be satisfied. The problems arising in connection with the inclusion of cryptocurrency in the bankruptcy estate of the insolvent debtor associated with the anonymity of its ownership and the specifics of the foreclosure have been identified. The anonymity of the existence of cryptocurrency in the electronic system does not allow the inclusion of property in the bankruptcy estate without the assistance of the debtor. It is recognized that cryptocurrency cannot be traded via electronic auctions in bankruptcy proceedings due to its existence in the framework of a special information system and short time price volatility. A distinction between cryptocurrency and electronic money has been made.
This article analyzes the concept and essential properties of blockchain: decentralization, usage of cryptography, autonomy, presence of consensus mechanisms, anonymity and transparency of the chain of blocks. Alongside the advantages, the article describes the disadvantages of blockchain: high cost of development and implementation of blockchain-based solutions and their utilization (high energy requirements); low speed of data processing; potential unauthorized changes to the database; absence of confidentiality of blockchain users. The author considers the scientific views on the need for legal regulation of the blockchain. An overview is presented on the global achievements in the area of blockchain standardization, as well as key vectors of standardization: terminology, reference architecture, security and confidentiality, management, smart contracts. An original definition of blockchain that takes into account its essential properties is provided. Two spheres of regulation are distinguished: legal regulation of relations that apply blockchain, and regulation of the blockchain technology itself (terminology, ontology, taxonomy, reference architecture, management, etc.). The conclusion is made on invalidity of the proposals on the unified legal regulation of blockchain (for example, formation of the universal law on blockchain), implying different areas of implementation of this technology. The author justifies the need for standardization of blockchain, as well as describes the key advantages of such standardization. It is underlined that the standards would not substitute the specific legal regulation, but would ensure the conditions for creating the legal framework in accordance with the requirements of technological reality.
The subject of this research is the legal norms that regulate legal relations in the context of application of blockchain technology and smart contracts based on it in the area of online advertising and intellectual property. The object of this research is the social relations emerging in the indicated spheres. Analysis is conducted on the concepts and characteristics of blockchain technology and smart contracts. The author also reviews some controversial theoretical and practical issues, such as terminology, legal nature of blockchain, smart contracts, and related concepts. Examples are provided of the currently existing blockchain platforms and services premised on them. The novelty of the conducted research consists in focusing on the relevant problems that emerge in the conditions of network economy in such spheres as online advertising and intellectual property. On the example of blockchain platforms functioning in the indicated spheres, the author reveals the problems the can be resolved using such technologies. The author also underlines certain practical difficulties that arise in the process of application of blockchain and smart contracts, particularly associated with the absence of legal definition of a number of concepts. The examples of corresponding court decisions are provided. A proposal is made on the need for consolidation on the legislative level of definitions of such concepts as “blockchain”, “smart contract”, “cryptocurrency”, and “token”.
Jenny Alexandra Triana Casallas, Juan Manuel Cueva Lovelle, José Ignacio Rodríguez Molano
The appearance of so-called block chains or Blockchain with the promise of transforming trust and the way value is exchanged, joins the expansion of the technological capabilities of organizations to achieve higher levels of productivity and innovation. This is how Blockchain-based techniques are being applied to many fields, focusing in this article on the public sector, as a possible solution to the demands for transparency, participation and citizen cooperation that society demands; due to the possibility of disintermediation based on automated transactions and on the responsibility and security in the management of official blockchain records. This could obstruct corruption and make government services more transparent and efficient. Although, it investigates about applications in the public sector under the Blockchain system, such as transactions, agreements, property registries and innovations, developments and other assets; Special emphasis is placed on the possibility of implementing Smart Contracts (mechanisms that aim to eliminate intermediaries to simplify processes) in public procurement procedures, given that it is in this type of activity where high levels of corruption are generated. It is concluded then that Europe has the largest number of blockchain initiatives worldwide, while Latin America, except for the case of Peru, lacks this type of applications, being this continent exactly where there are the countries with the highest levels of corruption. It concludes with a recommendation to use blockchain along with smart contracts through platforms such as Ethereum or Lisk, mainly given its flexibility and current development on topics with similar functionalities.
During the Industrial Revolution 4.0 era, the block chain was used as a digital record of transactions that is simultaneously used and shared within a large decentralized, publicly accessible network. In order to maintain the healthcare sector in Industrial Revolution 4.0, smart contracts are used to provide those addresses which provide transparent ways to do transactions among entities. In the other hand, the adoption has challenges, such as the adoption curve, the complexity of the business ecosystems and standardization, data privacy, and people expectations in the healthcare industry.
The combination of the Internet of Things (IoT), a type of Cyber Physical Systems (CPS), with Distributed Ledger Technology (DLT) platforms, also known as blockchains, provides an unprecedented opportunity for automating smart contracts that monitor the execution of legal contracts to ensure compliance. The absence of formalization of smart contracts based on recognized legal notions may however result in uncertainty during contract monitoring. The need for formal smart contract specifications, together with refinements and transformations to DLT implementations (code), is undeniable and urgent. This thesis, following a Design Science Research methodology, aims to partially address this need by developing a formal contract specification language called Symboleo, and selecting the suitable target language for generating smart contract code from Symboleo specifications. This thesis contributes a syntax and axiomatic semantics for Symboleo, with concepts rooted in a legal ontology, and supported by an editor. It also provides an analysis of possible target smart contract programming languages. These artifacts are evaluated with a comprehensive example of sales of perishable goods, with positive results.
The perpetual script of a smart contract, that executes an agreement machine-to-machine without prejudice, guarantees performance of ‘contractual terms’ enabling the exchange or transaction of cryptoassets and other forms of property. Yet, smart contracts as recognisable or valid legal instruments within the boundaries of contract or property law remain uncertain and contentious. Contrary to perceptions of contractual streamlining and efficiency, understanding the uncertainty smart contracts produce lies in the technology's failure to meet many of the fundamental principles of contract law and theory concerning, for example, breach of promise and remedy for breach. Smart contracts appear to reduce contracting to a form and standard well below that developed by contract law and theory over many centuries in both civil and common law jurisdictions. Including elements of the law of restitution, this article's remedial analysis will examine smart contracts considering ‘traditional’ contract law to understand and, where possible, test the legal legitimacy of this post-human technology, and explore the potential of smart contracts to supplement or, in time, supersede traditional contract law.