The integration of artificial intelligence (AI) into smart contracts holds the potential to both enhance and exacerbate consumer protection challenges. Since the AI system embedded within the contract’s code enables a high degree of contractual personalisation – by tailoring the legal agreement to the unique characteristics of the targeted individual consumer, thanks to its capacity to process large amounts of personal and behavioural data in real time – it opens the door not only to scenarios of AI-powered consumer manipulation, but also to the promising opportunity of a consumer-centric AI. Such an AI would serve the consumer’s best interests by adapting the contract to their specific needs and preferences, while protecting them from – rather than exploiting – their information, cognitive, and digital vulnerabilities. This research aims to assess whether the EU legal framework – particularly the UCPD, UCTD, AI Act, GDPR, and DSA – adequately ensures that these technologies are designed and deployed with the consumer’s well-being at their core. The paper explores AI-related risks such as digital manipulation, personal data exploitation, and the black-box problem inherent in algorithmic opacity, while also addressing the liability challenge in cases of consumer harm. Ultimately, it seeks to answer whether AI-driven smart contracts can truly foster a high level of consumer protection in the AI era, by offering novel interpretations of the existing legal framework and advancing proposals for reform aligned with the fairness-by-design approach and informed by behavioural science insights.
The paper explores the transformation of legal concepts in the era of smart contracts, with a focus on rethinking responsibility and justice within a hybrid legal ontology. The purpose of the article is to develop the conceptual foundations of a hybrid legal ontology to analyze the transformation of responsibility and justice in the context of smart contracts, aiming to comprehend qualitatively new forms of legal reality that emerge at the intersection of human and algorithmic principles. The study adopts an interdisciplinary approach, integrating philosophical-legal analysis with elements of systems theory, critical algorithm theory, and post-phenomenological research on technology. The methodological framework is based on concepts of legal pluralism, agency theory, and approaches from analytical philosophy of law to the challenges of responsibility. It is argued that smart contracts establish a hybrid legal ontology in which traditional categories of individual responsibility are replaced by distributed forms of agency. The study identifies a fundamental contradiction between the algorithmic logic of procedural justice and human needs for substantive justice. It is established that restorative justice is incompatible with the deterministic execution of smart contracts. The conceptualization of legal pluralism in blockchain ecosystems is further advanced through the coexistence of diverse normative orders. The research findings contribute to the philosophical-legal theory of the digital age by conceptualizing hybrid ontology as a new form of legal existence, thereby enriching the understanding of agency, responsibility, and justice in the context of human- machine interaction. The results provide a theoretical basis for developing new regulatory mechanisms that account for the distributed nature of responsibility in blockchain systems, establishing ethical principles for designing fair algorithmic systems, and creating hybrid justice institutions. A conceptual vision of hybrid legal ontology is proposed as a theoretical framework for analyzing qualitatively new legal phenomena. The concept of distributed agency is substantiated to describe collective responsibility in decentralized systems. An approach to understanding algorithmic justice through the limitations of formal systems is suggested. The study highlights the need for developing specific mechanisms to operationalize hybrid legal ontology in regulatory practice, creating new institutional forms to implement distributed responsibility, and exploring possibilities for integrating restorative justice into algorithmic systems.
Smart contract technology has revolutionized sectors like finance and supply chain management through its automated execution and decentralized nature in China.However, its rapid adoption necessitates robust regulatory frameworks to curb risks such as illegal activities and security vulnerabilities.A comparative analysis of international regulatory approaches reveals divergent policy priorities: the EU emphasizes personal data protection, the US fosters innovation in digital assets, Japan prioritizes transactional safety, South Korea safeguards investor rights, and the UK leverages regulatory sandboxes to balance innovation with control.This paper proposes a hybrid framework of community self-governance and indirect regulation to better mitigate risks while fostering the sustainable development of smart contract applications in China.A hierarchical evaluation system is also introduced, encompassing ex-ante review, interim monitoring, and ex-post audit, supported by quantifiable metrics to enhance regulatory efficacy.
Stanislav V. Kurovsky, Denis A. Mishin, Khalimat M. Kadirova
The purpose of the study is to substantiate the prospects for the development of the global digital financial assets market based on an analysis of infrastructural, regulatory and technological factors that determine the trajectory of their inclusion in the system of international financial relations. The research materials include scientific papers in the field of digital rights, as well as data on global approaches to tokenization of real assets, the structure of distributed ledger platforms and international practice of regulating digital instruments. The article uses such research methods as structural and comparative analysis, deductive generalization, and systematization of global cases. The result of the study: the key directions of development of the global digital financial assets market have been identified, related to the expansion of infrastructure, the complexity of technological solutions and the gradual institutionalization of digital forms of accounting. Conclusions: a) the prospects of the global digital financial assets market depend on the degree of consistency of regulatory regimes; b) the proliferation of tokenized instruments enhances the role of digital assets in global settlements and investment processes; c) strengthening international standards for the treatment and disclosure of information is a prerequisite for the formation of a stable and predictable segment of digital financial assets.
Тулаев, Д. А., Голованова, К. А., Tulaev, D., Golovanova, K.
В статье рассматриваются смарт-контракты как инновационный инструмент в финансовой сфере, акцентируя внимание на их необходимости и преимуществах в условиях цифровизации экономики. Автор анализирует функции смарт-контрактов, такие как автоматизация процессов, повышение прозрачности и безопасность транзакций, а также их влияние на сокращение затрат и временных издержек. Исследование базируется на современных примерах использования смарт-контрактов в финансовых услугах и обсуждает потенциальные вызовы и риски, связанные с их распространением. В заключение подчеркивается важность интеграции смарт-контрактов в финансовые экосистемы для повышения эффективности и конкурентоспособности в условиях цифровой трансформации.
Based on a civilistic methodological approach, the concept, as well as the legal nature of a smart contract, are considered, and cases of using a smart contract for the purpose of committing a cybertort are investigated. The subject of the study is: civilistic doctrine, norms of Russian legislation, judicial and notarial practice. The purpose of the study is to reveal the specifics of notarial support of evidence in case of committing a cybertort through the use of a smart contract. Taking into account the above subject and purpose of the study, the article uses systemic-structural, comparative-legal methods of scientific knowledge, as well as the modeling method. The methodological feature of the article is a combination of theoretical and empirical levels of knowledge. The use of the above set of methods made it possible to reveal the specifics of notarial support of evidence in the context of legal analysis of relations arising as a result of committing a cybertort through the use of a smart contract.
The immutable nature of blockchain makes it challenging to amend or clarify smart contracts once they are deployed. In light of these challenges, new approaches to dispute resolution will be necessary to effectively manage smart contract conflicts. Alternative dispute resolution methods, such as mediation, may offer more flexible and tailored solutions compared to traditional court proceedings.
Juan Carlos López-Pimentel, Carolina Del-Valle-Soto, Leonardo J. Valdivia, Raúl Monroy
Immutability is one of the main characteristics of Blockchain. However, most software development is not static. This dilemma, among others, has caused a new branch of blockchain-oriented software engineering. This paper emphasizes the importance of the early phases of software development before deploying blockchain-based software. It follows case-based research to illustrate the implications of smart contracts designed in the early phases without including all requirements. The paper presents a digital identity case designed within a microservice architecture. We show two stages: an initial design and an upgrading requirement, which causes considerable changes in the architecture. The case is analyzed from three different perspectives: 1) Economic, finding that re-deploying smart contracts does not implicate considerable cost; 2) Computational perspective, finding that it generates various implications: smart contract purpose duplication, storage wastage, failure to recognize the original smart contract, cascade dependency repercussion, and migration problems; and 3) Interconnected effect, a simple change, required for upgrading smart contracts, generates broad collateral repercussions in both on-chain (within the blockchain) and off-chain.
The rapid development of the cryptocurrency market forces states around the world to look for effective mechanisms for legal regulation of this new financial reality. In addition, Russian citizens are active users of online platforms that trade cryptocurrencies. Thus, the urgent task of the Russian Federation at the present stage of its development is to find the optimal cryptocurrencies legal regulation. Purpose: to analyse trends and prospects of cryptocurrencies legal regulation, including various approaches to legal regulation, counting abroad. Methods: comparative analysis of the legal regulation of cryptocurrencies in various jurisdictions, as well as a study of technological solutions used abroad. Results: the study made it possible to analyse legislative initiatives regarding cryptocurrencies, from a liberal approach to a complete ban. It also reflected the need to maintain a difficult balance between the desire to protect investors, fight crime, and encourage innovation in the digital economy.
This study aims to analyze and evaluate the adequacy of the current legal and regulatory framework governing smart contracts in the United Arab Emirates (UAE). Smart contracts are self-executing agreements encoded in programming languages, operating automatically via blockchain platforms without human intervention. The significance of this research emerges in light of the UAE’s growing reliance on digital transformation and its national strategies promoting the adoption of emerging technologies in commerce, finance, and public services. A qualitative methodology was adopted, based on semi-structured interviews with legal and technical experts, along with doctrinal analysis of federal laws relevant to electronic transactions, cybersecurity, and data protection. The study was also enriched through a comparative legal review of jurisdictions such as Singapore, Arizona, and Germany. The findings reveal a clear legislative gap in the UAE, most notably the absence of a precise legal definition of smart contracts, a lack of comprehensive regulatory mechanisms, and limited judicial capacity to interpret code-based obligations. These shortcomings reduce the enforceability and legal certainty of smart contracts in practice. Accordingly, the study proposes a set of legal and institutional reforms, including: establishing an official legal definition of smart contracts; drafting specialized executive regulations; creating a national regulatory authority for digital contracts; and developing digital arbitration platforms. This study also recommends integrating legaltech education into judicial training programs and encourages academic research into the interplay between smart contracts, artificial intelligence, and digital rights. This research represents a novel contribution to the Arabic legal literature by addressing a cutting-edge issue through empirical insights and comparative legal models. This study offers practical recommendations to support the UAE’s ambition to establish a secure, adaptive, and future-ready legal environment for smart contracting.
A Blockchain-based smart contract is a stored code to represent a contract between different parties; it executes automatically when predetermined terms and conditions are met. The smart contract resides on a blockchain shared by participants and hence guarantees exact execution of transactions and keeps immutable transaction records. The smart contract has a lot of advantages such as decentralization and distributed ledger which facilitates a direct communication between different parties in a network, trustworthy and transparency. The direct communication feature leads to Peer-To-Peer based transaction that removes a high cost and overheads needed for handling transactions that require intermediate. Banks - as financial institutions- use such type of transactions in different areas of their business especially for the areas where require interaction between many parties such as trade finance transaction. So One of the potential incentives for banks in case of the development of distributed blockchain technologies for these types of transactions involves the reduction of overhead and costs associated with audit and regulation. In addition, more automation and efficiency in transaction processing, clearing and reconciliation can help to reduce counterparty credit risks. This paper discuss the concept of smart contract blockchain based technology and its potential to disrupt the world of banking through facilitating complicated banking transactions The implementation of smart contract application will use an Ethereum platform and Solidity language. The Ethereum is a block chain technology that provides an open global computing platform, called the Ethereum Virtual Machine (EVM),
Public Prosecution Office at the Egyptian Court of Cassation, Mohammed Abdelnabi, Yassin Abdalla Abdelkarim, Sohag Primary Court
The prevalence of digital technologies in contemporary human interactions has elevated the role of digital means in contractual relations among society members, prompting renewed attention to smart contracts as automated, code-based legal instruments. This study examines the nature, structure, and operational mechanisms of smart contracts, comparing them to traditional contract theory under the Egyptian Civil Code (Law No. 131/1948). Smart contracts create binding obligations through software-based processes that rely on encryption, offering efficiency but also posing technical and doctrinal challenges. The paper investigates whether the Egyptian legal framework can adequately address issues such as consent, validity, termination, and dispute resolution in digital contracts. By analyzing smart-contract characteristics through the lens of Egyptian civil-law principles, the study seeks to clarify how existing doctrines may be adapted to accommodate emerging technologies. It ultimately proposes a jurisprudential foundation for integrating smart contracts into Egyptian law, ensuring legal certainty and coherence with established contractual norms. __________ CONTRATOS INTELIGENTES BAJO EL DERECHO CIVIL EGIPCIO: ESTRUCTURA Y TERMINACIÓN La prevalencia de las tecnologías digitales en las interacciones humanas contemporáneas ha elevado el papel de los medios digitales en las relaciones contractuales entre los miembros de la sociedad, impulsando una renovada atención a los contratos inteligentes como instrumentos legales automatizados basados en código. Este estudio examina la naturaleza, la estructura y los mecanismos operativos de los contratos inteligentes, comparándolos con la teoría contractual tradicional del Código Civil egipcio (Ley n.º 131/1948). Los contratos inteligentes crean obligaciones vinculantes mediante procesos basados en software que se basan en el cifrado, lo que ofrece eficiencia, pero también plantea desafíos técnicos y doctrinales. El documento investiga si el marco legal egipcio puede abordar adecuadamente cuestiones como el consentimiento, la validez, la rescisión y la resolución de disputas en los contratos digitales. Al analizar las características de los contratos inteligentes a través de los principios del derecho civil egipcio, el estudio busca aclarar cómo las doctrinas existentes pueden adaptarse para dar cabida a las tecnologías emergentes. En última instancia, propone una base jurisprudencial para la integración de los contratos inteligentes en el derecho egipcio, garantizando la seguridad jurídica y la coherencia con las normas contractuales establecidas. __________ 埃及民法下的智能合约：结构与终止 数字技术在当代人际互动中的普及提升了数字手段在社会成员间契约关系中的作用，促使人们重新关注智能合约这种自动化、基于代码的法律工具。本研究考察了智能合约的性质、结构和运行机制，并将其与埃及民法典（1948年第131号法律）下的传统合同理论进行比较。智能合约通过基于软件的加密流程产生具有约束力的义务，这在提高效率的同时，也带来了技术和法理上的挑战。本文探讨了埃及法律框架是否能够充分解决数字合约中的同意、有效性、终止和争议解决等问题。通过运用埃及民法原则分析智能合约的特征，本研究旨在阐明如何调整现有法律原则以适应新兴技术。最终，本研究提出了将智能合约纳入埃及法律的法理基础，以确保法律确定性并与既定的合同规范保持一致。
Cryptocurrencies have become an important stage in the evolution of blockchain technologies, representing not just a financial instrument, but an entire platform for automating and simplifying various processes. Blockchain 2.0, with its capabilities for creating and executing smart contracts, allows users to develop decentralized applications (dApps) that can function without intermediaries. This technology opens up new horizons for economic coordination and social management. For example, smart contracts can be used in areas such as financial services, supply chain management, voting and management, and real estate. Cryptocurrencies or smart contracts are self-executing computer algorithms hosted on the blockchain and activated automatically when strictly defined conditions occur. Their fundamental importance lies not in technical novelty, but in the ability to create interaction systems where the fulfillment of conditions is mathematically guaranteed, which marks the transition from centralized models to decentralized algorithmically managed environments. The development of theoretical and practical recommendations on the use of smart contracts can provide new opportunities for the development and economic growth of Russia.
The technological advancements that have occurred over the past few years have provided various solutions to human problems. However, it also posed several novel, unprecedented legal challenges. Smart contracts represent one of these technologies that pose serious questions to the current contract laws. This research aims to conduct an in-depth investigation into the legal viability of the current contract law in Syria for regulating smart contracts, considering their unique and novel characteristics and features. To achieve this objective, the study employed a combination of doctrinal legal research, drawing on primary, secondary, and tertiary sources; and qualitative empirical research through several semi-structured interviews. Special reference has been made to the current legal benchmarks in the field of smart contracts, namely Belarus, Italy, and the United States, to provide more accurate and applicable recommendations. The findings of the research reveal a clear legal gap in the existing legislation for addressing smart contracts, despite the possibility of classifying them under the general definition of a contract. Due to the complete absence of any legal provision or regulations, numerous unanswered questions related to the contract’s life cycle have arisen, posing serious legal risks to the parties and creating uncertainty regarding the legal measures for protection, supervision, and enforcement. The study proposes several measures to address the complexities of smart contracts, involving the importance of initiating legal amendments to create a framework that enables parties to execute smart contracts in a legal, secure, and enforceable manner. This can also mitigate the significant risks posed by leaving these technologies unregulated. To design an effective legal framework, the study proposes a new conceptual framework that integrates smart contracts into current contract theory, while accounting for their unique characteristics to maximize benefits and minimize possible legal risks.