The advent of the Blockchain together with the appearance of the Ethereum platform gave rise to the realization of Szabo's original idea, allowing the implementation of intelligent contracts. Blockchain by itself is a database with certain special characteristics but the potential that this technology acquires with the implementation of intelligent contracts leads us to the conceptualization of intelligent property, internet of things, artificial intelligence, intelligent cities, tokenization of physical assets and properties. This last concept also triggers the possibility of issuing tokens linked to undertakings with sustainable development objectives or "green tokens". The tokenization of digital goods has developed naturally, but the pitfalls -more mental than legal and technological- are present in the tokenization of physical assets, and we will address them in this paper. Del Castillo Ionov says: "tokenization involves taking an asset and, using blockchain technology, issuing tokens representative of that asset, facilitating its negotiation, the enjoyment of the rights of that asset and its governance". We believe that the tokenization of physical assets will allow a new field of action, marketing, transmission, circulation of rights and wealth, as well as a new range of opportunities not only for all legal operators but also for the great mass of capital investors interested in sustainable development, as well as for the home retail investor.
ابزارهای مبادلاتی نوین در عصر حاضر نقشی غیرقابل انکار در توسعه تجارت الکترونیکی بر عهده دارند. یکی از این ابزارها قراردادهای هوشمند هستند که در مقایسه با دیگر انواع قراردادهای الکترونیکی دارای خصوصیاتی از جمله سرعت و امنیت بالا هزینه کم در تشکیل قرارداد میباشند. پژوهش حاضر به روش اسنادی به دنبال پاسخگویی به این سؤال است که سیاستگذاری قواعد عمومی تشکیل قراردادها در مرحله انعقاد قراردادهای هوشمند با چه چالشهایی مواجه است؟ بهطور کلی مهمترین چالشهای موجود مطابقت قواعد حاکم بر این قراردادها با هنجارهای موجود در جامعه، تعارض قوانین داخلی کشورها با یکدیگر و مقررات بینالمللی، اعتبارسنجی این قراردادها و ابزارهای انعقاد آنها از جمله ارزهای مجازی، سازوکار عملکرد هوش مصنوعی و ماهیت متمرکز پایگاههای اطلاعاتی و هوش مصنوعی میباشد. رفع چالشهای مذکور نیازمند برخی سیاستگذاریهای تقنینی و اجرایی از جمله تصویب قوانین کارآمد در جهت اعتبارسنجی قراردادهای هوشمند و ارزهای مجازی، اصلاح قوانین متعارض موجود، پیشبینی تشریفات تخصیص مجوز تملک ارزهای مجازی و بهرهمندی از امضائات دیجیتالی، آگاهی بخشی به مردم و تعیین نهادهای ناظر خواهد بود.
The article gives a brief analysis of the place of a cryptocurrency in the system of objects of civil law rights. According to the results of the study, the authors conclude that it is incorrect to equate legal regimes of the cryptocurrency with the legal regime of virtual objects. The authors consider it promising to regulate legal features of the distributed ledger and register objects of civil law rights in the distributed ledger. A cryptocurrency is a means of payment that has no independent value. Thus, the mechanism of performance of obligations needs special elaboration. It is also noted that in the legal regulation of any social relations an essential role is assigned to the mechanisms and guarantees of restoration of violated rights and legitimate interests. To this end, the cryptocurrency regulation is inextricably linked with the institution of civil liability. The cryptocurrency combines the features of many civil law rights, but does not fully correspond to any of them. The assignment of the cryptocurrency to other property is possible within the framework of the current legislation without creating new objects of civil law rights, which can lead to conflicts and disputes concerning their legal regime.
Anatolii Georgievich Korchagin, Andrei Aleksandrovich Yakovenko
  This article explores the phenomenon of cryptocurrency and technology it is based upon. The authors describe the mechanism of its functionality along with the occurred problems of legal nature, which being interrelated make the phenomenon in question appealing within the criminal environment. Global digitalization sets new requirements, namely the combinations of legal and technical regulators meant to achieving adequate legal regulation in the digital era. The subject of this research is the Russian and foreign legal doctrine that reveals the essence of the indicated technology and mechanisms for protecting social relations in the context of utilization of this technology. The research methodology consists of the following methods: statistical, dogmatic, comparative-legal, synergetic, logical, functional, and systemic. The scientific novelty is substantiated by the need for convergence of the legal and information systems and demonstration of such convergence during the period of rapid digitalization in all social spheres. The authors draw a conclusion that the problem carries a comprehensive character, and the longer it takes to resolve the issues of legal regulation, the higher are the risks of using cryptocurrency.  
With the recent popularity of Blockchain and other Distributed Ledger Technologies (DLT), blockchain enabled smart contract applications has attracted increased research focus. However, the immutability of the blocks, where the smart contracts are stored, causes conflicts with the traditional Software Development Life Cycle (SDLC) models usually followed by software engineers. This clearly shows the unsuitability of the application of SDLC in designing blockchain enabled smart contract based applications. This research article addresses this current problem by first exploring the six traditional SDLC models, clearly identifying the conflicts in a table with the application of smart contracts and advocates that there is an urgent need to develop new standard model(s) to address the arising issues. The concept of both block immutability and contract is introduced. This is further set in a historical context from legacy smart contracts and blockchain enabled smart contracts extending to the difference between "shallow smart contracts" and "deep smart contracts". To conclude, the traditional SDLC models are unsuitable for blockchain enabled smart contract-based applications.
Jan 1, 2020·Proceedings of the 2nd International Scientific and Practical Conference “Modern Management Trends and the Digital Economy: from Regional Development to Global Economic Growth” (MTDE 2020)
Albina Anvarovna Bilyalova, Irina Vaslavskaya, R. Gaifutdinova
Transport development trends and the digitalization of the economy pose new requirements for the level of service and the quality of freight transport, which are difficult to maintain without optimizing transport and logistics costs. To optimize the management of freight transport in modern conditions, it is necessary to use modern intelligent information technologies, methods of information and conceptual computer modeling of supply chains that will virtualize transport resources to further build an optimal development for managing this activity. The article analyzes the use of intelligent information technology Blockchain technology in the management of transport processes, which can improve the quality of transport and forwarding services. The authors describe examples of the use of Blockchain technology in the transport industry in such well-known companies as Ryder, BiTA, the Plato system, MTI (Marine Transport International (UK) Limited), Toyota. Based on the experience of using Blockchain technology, the authors identify the advantages and disadvantages of Blockchain technology in the transport industry. As a result, it was concluded that Blockchain technology will become one of the key tools of the digital society, which will not only optimize various processes, but will bring simplicity, transparency and efficiency to the transport and logistics industry.
One of the major directions in IT development is the emergence of Blockchain technology, which is rooted in the concept of distributive ledger technology (DLT). Blockchain is based on the use of a cryptographically protected chain of transaction blocks containing information. Blockchain technology becomes relevant in economic exchange as it lowers costs and adds efficiency to transactions` implementation. The key quality of blockchain is that it ensures the authenticity of digital data; trust in the traditional legal relationship has been replaced by digital verification of data in blocks. Verification of digital data by tracing transaction blocks is identical to a hard copy ledger: blocks function as bookkeeping inputs of a digital manager. The blocks are functionally equal to sheets of paper, used by all participants to enter their transaction and sign it. In doing so, they grant authorization to all previous paper transactions. The foregoing process continues as long as there is space on paper available. When the sheet is filled, it is secured with a stamp and new transactions are recorded on a new sheet of paper which, once filled, is linked to the previous paper (secured with the signature and a stamp on the margin between the first and second paper). A functionally identical activity occurs in the framework of blockchain technology. As the important phenomenon, blockchain raises legal issues that have to be addressed in the process of its implementation. Currently, the legal regulation of blockchain is at the stage of developing customs, which are likely to be translated into standards relevant to this technology. Standards are a discretionary regulatory framework in the form of private law regulation; in essence, it is a software-driven expression of traditional contracts, translated into programming languages. The relevant doctrine labels this process as "legal engineering". An example of this development is the legal regime of "Smart Contracts". These contracts constitute the next stage in the development of blockchain deployment; they are based on a cryptographic process enabling the execution of contracts once the preconditions contained in the program code are satisfied. The emerging legal regulation of blockchain will not rule out the existing legal norms; rather, they will operate simultaneously and complementarily.
The article is devoted to the analysis of the legal nature of the cryptocurrency as an object of financial and legal regulation from the point of view of Russian legislation. It includes the analysis of the qualification of the cryptocurrency described as money, electronic money, foreign currency, other property, as well as the possibility of assigning crypto-loans to obligations rights. The conclusion is made about the possibility of treating cryptocurrency as private money on a par with national currencies.
Having recently celebrated its ten-year anniversary, Bitcoin should be considered a qualified success. In October 2020, each unit1 was worth about $10,700, and the entire market capitalization was approximately $200 billion.2 Bitcoin is a significant economic force with sizable market value. Despite this success, however, Bitcoin has not been widely adopted as a method of payment, which was its intended use.3 By providing a template for a durable cryptocurrency, Bitcoin also blazed a path for other cryptocurrency projects. In terms of market capitalization and current importance, Ethereum is comfortably in second place.4 In October 2020, it had a market capitalization of approximately $40 billion.5 Unlike Bitcoin, however, Ethereum was not designed primarily to serve as a method of payment. Ethereum supports a system of sophisticated “smart contracts” that would not work on the Bitcoin system. Smart contracts and cryptocurrencies have sparked considerable interest among legal scholars in recent years, and a growing body of scholarship focuses on whether smart contracts and cryptocurrencies can sidestep law and regulation altogether.6 Bitcoin is famously decentralized, without any central actor controlling the system. Its users remain largely anonymous, using alphanumeric addresses instead of legal names. Ethereum shares these traits and also supports smart contracts that can automate the transfer of the Ethereum cryptocurrency (known as ether). Ethereum also supports specialized “tokens” that can be tied to the ownership of assets, goods, and services that exist completely outside of the Ethereum blockchain. The goal of this Article is to evaluate the degree to which cryptocurrencies and smart contracts can operate outside the reach of law and regulation. By some accounts, cryptocurrencies and smart contracts will revolutionize private law.7 Some argue they have the potential to displace contract and property law. For example, in a previous article, I argued that Bitcoin represents a system of private property that exists wholly outside of traditional legal structures.8 In this Article, I will argue that a complete revolution is not inexorable.9 Facing the technical and complicated nature of this subject, we should keep in mind a simple fact: cryptocurrencies and smart contracts are computer data and computer programs. To a large extent, they will have legal force only if given force by judges, regulators, and legislators. Part II describes Bitcoin and how it creates a system of property that exists outside of legal structures. Bitcoin is special because it controls no external assets (like securities, dollars, or gold). It is purely “notional” property that exists only on a computer file. Part III describes Ethereum and how it builds upon the principles of Bitcoin. The primary innovation of Ethereum is smart contracts, which allow for variable and conditional transfers of cryptocurrency. To be of commercial value, however, smart contracts must incorporate economic or financial information (e.g., interest rates or exchange rates). Ethereum allows users to incorporate this information using third party “oracles.” While oracles allow for sophisticated transactions, their presence illustrates some of the limits of smart contracts. Part IV extends the discussion of Ethereum and explains how many developers use it as a way to effectuate property transactions. Tokens are specialized smart contracts used to represent ownership of assets or certain privileges. Conceivably, ownership in any asset— homes, cars, etc.—could be represented by Ethereum tokens. Rather than using a deed of transfer, owners could simply transfer the representative tokens. Part V develops what this Article calls a “remote-computer model” of Bitcoin and Ethereum. Because Bitcoin and Ethereum are computer programs and computer data, we can view each as constituting a single computer. This hypothetical computer is remote in the sense that judges, regulators, and legislators can exercise little control over it directly. The remote computer controls ownership of cryptocurrency units, leaving direct cryptocurrency transactions outside the scope of traditional legal institutions. That being said, smart contracts often purport to control external resources and rights. For example, a smart contract might purport to control the transfer of land or stock in a corporation. These transactions have effects outside the hypothetical remote computer and can potentially be subject to control by legal institutions.
Blockchain possui algumas características únicas, como a possibilidade de des- centralização em ambientes não confiáveis, auditabilidade e segurança, citando apenas algumas. Algumas blockchains podem até permitir a execução smart contracts, que são programas que podem ser executados de uma maneira distribuída e descentralizada. Eles têm a grande vantagem de permitir estender os benefícios da blockchain para qualquer tipo de aplicação. Contudo, esse conceito não tem sido empregado em todo seu potencial devido a desafios associados a complexidade computacional e latência. Esses desafios estão associados tanto ao uso de smart contracts, quanto ao da blockchain. Algumas soluções foram desenvolvidas com o objetivo de mitigar esses problemas. Uma importante solução proposta na área de blockchain é o desenvolvimento da appendable-block blockchain. Este tipo de blockchain tem o potencial de reduzir problemas de latência e escalabilidade através da possibilidade de adição de dados deforma paralela na blockchain. Contudo, atualmente, este modelo não possuía possibilidade de executar smart contracts. Além disso, modelos tradicionais para a execução de smartcontracts não são compatíveis com a appendable-blockb lockchain. Neste trabalho, nós apresentamos uma solução para essa falha. Nós introduzimos um modelo para a execução de smart contracts, que nós chamamos de context-based model. Este modelo além de permitir a execução de smart contracts na appendable-block blockchain permite que sejam aproveitados os benefícios de inserções paralelas desse modelo deblockchain. Isto incrementa a escalabilidade, porque permite a execução de smart contracts em paralelo. Essa melhora é comprovada por uma prova de conceito implementada neste trabalho, onde uma análise de performance foi efetuada comparando com execução sequencial de smart contracts.
With the rise of digitalization, myriad new technologies are currently revolutionizing most, if not all, markets. One such technology that is receiving particular attention from businesses, private market participants, the financial sector, and governments alike is the blockchain. Despite its increasing popularity, most jurisdictions currently fail to adequately regulate it, meaning that businesses cannot exploit the full potential of blockchain technology and its various applications. This article explains how blockchains function and delineates their associated compliance risks. Here, particular attention will be paid to both decentralized cryptocurrencies and stablecoins. How decentralized cryptocurrencies could potentially be abused for money laundering, terrorism financing, and corruption purposes will be illustrated, and different legislation and international approaches to dealing with blockchain technology and cryptocurrencies will be highlighted. Lastly, the impact of blockchain technology and its implications for actors in the digitalized economy will be discussed.
Automation is taking hold in different aspects of business across every industry and every sector. Consistent with this trend, the notion of embedding automation into legally binding contracts is also gaining momentum. COVID-19 is fuelling digital transformation and has highlighted frustrations with static contracts that sit disconnected from digital processes and systems. As automated ‘smart contracts’ become more common, lawyers have been grappling with how to preserve the legal integrity of the contract whilst harnessing the benefits of automation and digital connectivity. Automation of contract performance is a field lacking in standard definitions. This paper proposes a framework to assist discussion and development of legally enforceable automation of contract performance and explores high level features of contracts along the spectrum of contract automation by proposing an initial model for the levels of automation (and digitalisation). This model draws analogies with the SAE International J3016 “Levels of Automation” widely adopted for autonomous vehicles.
This paper discusses the implications of smart contracts in energy trading for the protection of consumer and individual rights. It examines the legal risks and regulatory solutions for a peer-to-peer energy trading platform (P2P-ETP) in creating a sustainable energy ecosystem. Part I discusses the conceptual framework of P2PETP, which enables consumers to become energy ‘producers' and traders. Smart technologies—smart contracts, smart meters, and distributed ledger technology (DLT) platforms, are the main components of this platform. The study examines the legal basis for these components. Part II analyzes the legal uncertainty of the smart contract, such as its enforceability, and the inadequate protection for consumers and their individual rights through price manipulation, violation of rights to privacy, and data breaches. Part III discusses the potential policy implementations and the principles behind a legal and regulatory framework for establishing a trusted peer-to peer energy trading platform.
The object of the present work is to provide a legal analysis of the formation of legally binding agreements through blockchain-based smart contracts. Smart contracts are computer codes that are capable of running automatically upon the occurrence of specific conditions and according to pre-specified functions. These codes can be stored and processed on a blockchain and any change is recorded in the blockchain. The expression “smart legal contract” refers to the use of smart contracts in the contractual domain to perform already existing contracts or to express legally binding agreements in the form of lines of computer code. Regarding the latter, researchers question whether blockchain-based smart contracts can be considered legally binding contracts. The study aims at putting in correlation contract requirements with blockchain- \nbased smart contracts. The scope of the analysis is to verify how to interpret the rules on contract formation to make blockchain-based smart contracts fit into contract law.