Олег Грибунов, Sergey Igorevich Usachev, Е.А. Усачева
The work is devoted to the consideration of issues related to the impact of digitalization on modern crime. The authors identify trends in the use of virtual currency in criminal activities. Attention is drawn to the lack of clear legislative regulation regarding cryptocurrency and items of theft in this area, and existing judicial practice is analyzed. It is noted that the lack of clear legislative regulation has a negative impact on the process of proving illegal acts involving the use of cryptocurrency and other virtual currency. Law enforcers are faced with problems of determining the value of these financial assets, the lack of proven and reliable mechanisms of proof, clear schemes and algorithms for the application and use of various software products that are aimed at recording the fact of transactions, determining the time and place of transactions (transfers) made by both criminals and victims. Separately in the work, the authors pay attention to the use of specialized forensic technology tools that help in retrieving and storing information, despite the complexity of modern devices and encryption systems. The work provides examples of modern software products, for example, Elcomsoft iOS Forensic Toolkit.
Smart contracts are widely applied in financial delegation contracts to address contract fraud. The smart contract delegation contract signing mechanism (DCSM-SC) effectively tackles fraud risks arising from information and interest asymmetry. However, in dealing with financial contracts, a formalized analysis method is necessary.
The study aimed to determine the role of international cooperation of EU countries on the information exchange in the investigation of cryptocurrency-related crimes. The research employed a combination of general scientific methods (description, analysis, synthesis, etc.) and empirical methods, particularly content analysis. The author used descriptive, comparative methods and analysis of legal acts. The conducted research gave grounds to provide suggestions for improving the legal framework of international cooperation of the EU countries on the information exchange in the investigation of cryptocurrency related crimes; the adoption of the basic EU document on combating criminal activity using cryptocurrency is substantiated, proposals for its adoption are formulated in the work. Prospects for future research may include studies on the further development of regulations for the exchange of information in the investigation of cryptocurrency crimes.
Abstract It has been claimed that technology would replace the legal profession with artificial intelligence and codification of documents replacing the twenty‐first century lawyer. With this premise in mind, this paper discusses smart legal contract formation in the context of Australian contract law, the perceived replacement of lawyers through blockchain technology and how the COVID‐19 pandemic has set the trajectory for smart legal contract convention. We consider whether the legal profession can ever truly be replaced by technological advances and whether COVID‐19 has pivoted the way the legal profession performs business transactions towards modernisation. Although prior literature has considered how the legal profession may benefit from increased technology use, the expected timeframe for occurrence was dependant on a strong reluctance by the profession to change the status quo. Analysis of the impact of COVID‐19 on the legal profession including the execution of legal documents, provides insight into areas for improvement going forward and whether a regulatory overhaul is required. This research shows that, although there are a number of advantages to the implementation of smart legal contracts using blockchain technology, there still remains numerous implementation and regulatory concerns that need resolution if smart legal contracts are to be widely used.
إن التطور التقني أفرز نظاماً جديداً للتعاقد عن بعد يعرف بالعقود الذكية، والتي تمثل أحد تطبيقات تقنية سلاسل الكتل (Block‑chain) وتعتبر هذه التقنيات جيلاً متطوراً ومستحدثاً عن العقود الإلكترونية، إلا أن هذا العقد يواجه بعض الإشكاليات المتعلقة بتكوينه، منها ما يتعلق بالتعبير عن الإرادة والأهلية القانونية للمتعاقدين. لذا جاء هذا البحث لتسليط الضوء على هذه الإشكاليات، حيث خلص إلى بعض النتائج، منها أن الإيجاب يتشكل في العقود الذكية منذ لحظة نشر الكود البرمجي على منصة سلسلة الكتل، وأن أهلية التعاقد تمثل عائق أمام العقود الذكية، وعليه، يجب العمل على تحديد الآلية القانونية المناسبة للتعرف على أهلية المتعاقدين، سواء الشخصية أو الاكتفاء بالشخصية المالية الرقمية للمتعاقدين عبر العقود الذكية، والعمل على وضع تشريع موحد لتنظيم العقود الذكية. Technological advancements have given rise to a new remote contracting system known as Smart Contracts. These contracts, which are an application of block‑chain technology, represent a sophisticated and innovative generation beyond electronic contracts. However, the formation of these contracts faces challenges, particularly regarding the expression of will and the legal capacity of the contracting parties. This study sheds light on these challenges and draws certain conclusions. One of those conclusions that the Offer in Smart Contracts is established from the moment the program code is deployed on the block‑chain platform. Additionally, contractual capacity poses an obstacle to Smart Contracts. Therefore, it is essential to work towards defining appropriate legal mechanisms to determine the capacity of the contracting parties, whether in terms of personal capacity or reliance on the digital financial capacity of the parties through Smart Contracts. Furthermore, there is a need to develop unified legislation to regulate Smart Contracts.
스마트 컨트랙트는 디지털 시대에 기존 계약 방식의 불편을 해결하는 수단으로 핀테크 산업을 중심으로 혁신적인 스타트업의 실험과 도전에 힘입어 비즈니스 실용화 속도가 빠르게 전개되고 있다. 블록체인에 기반한 스마트 컨트랙트는 온라인 네트워크에서 작동되는 탈중앙화(DeFi) 기술로 투명하고 신속한 거래와 보안성을 확보할 수 있으며, 자동 집행(self-enforcing)에 따른 거래비용이 절감되며 거래 과정에서 발생하는 불필요한 분쟁을 해결할 수 있다는 장점을 갖고 있어 그 활용에 주목하고 있다. 블록체인에 기반한 스마트 컨트랙트는 법률적으로 전통적인 계약방식을 확장하여 계약에 필요한 청약과 승낙을 자동으로 실행시키는 거래의 수단으로 인식한다면 현행 계약법만으로 충분한 적용이 가능하다. 그러나 스마트 컨트랙트는 거래 당사자의 합의에 따른 계약의 권리와 의무를 미리 프로그램 코드로 작성한 알고리즘을 설정한 후 코딩된 조건에 따라 자동으로 실행하게 되는데, 여기서 프로그램 코드의 오류가 발생하게 된다면 정상적인 거래에 영향을 미치고 계약 이행은 비정상적으로 종결되어 불완전이행 문제가 발생하게 된다. 이외에도 프로그램 오작동이나 악의적 파괴 또는 외부의 해킹은 불완전이행의 잠재적 위험요소로 제기되고 있다. 특히, 스마트 컨트랙트 알고리즘 작동의 기술적 결함으로 인한 프로그램 오류가 발생하거나 외부의 해킹으로 인한 프로그램 파괴나 침탈의 경우 해당 계약은 불완전이행이 발생하며 법적 책임과 손실에 관한 문제로 귀결된다. 이처럼 스마트 컨트랙트는 계약 조건을 프로그래밍 코드로 미리 작성하는 알고리즘에 기반하여 자동으로 실행되므로 인위적인 오작동 또는 해킹 등으로 인한 책임의 법적 구속력을 부여하는 명문화된 규정이 필요하다. 결국 스마트 컨트랙트는 블록체인 기술을 활용하여 종래의 계약체결 방식과 달리 계약의 조건이 코드로 작성되어 배포되고 중개자 없이 자동으로 실행되는 측면에서 기존의 계약법을 준용하기에는 법적 불확실성이 존재한다. 따라서 스마트 컨트랙트의 증거력 인정에 필요한 법률 정합성에 기초한 법적 구속력을 확보할 필요가 있다.
The purpose of the study is to study smart contracts, which are one of its main components, which support the main connection between the parties forming social relations, using the innovative technology —blockchain technology. It is focused on the analysis of the formation ofsmart contracts and the peculiarities of legal regulation in domestic and international relations. To form smart contracts, its general concept and specific features, the potential of blockchain technology in forming smart contracts are studied. Priorities and weaknesses of the technological system in the formation of smart contracts are revealed. Foreign experiences have been studied, and the basis of the legislation of Kazakhstan, including civil law legislation, has been studied for the implementation of smart contract formation technology mechanisms. The advantages and disadvantages of smart contracts, which play an important role in the implementation of blockchain technology, are discussed, and the situations that allow them to be prevented are explained. As a result of the research, the legal basis for the introduction of this information and communication technology into the Kazakh legislation was determined. Conclusions about smart contracts, which rapidly develop blockchain technology, are important as scientific research opens the way for legal research in this direction, considering contractual relations in social relations as a tool for improving them. The practical significance of the research will be to increase the efficiency of the measures taken in the formation of smart contracts, to contribute to the development of electronic contractual relations that allow the formation of public relations at a high-quality legal level, and as a result, to create the basis for social and economic development. Research results can be used in the formation of smart contracts, public and quasi-public procurement, public service provision, and many other areas.
Open access
Digital Transformation in Law
Legal, Health, Environmental and COVID-19 Challenges
Bitcoin and cryptocurrency adoption has increased significantly over the past few years. The significant growth in the industry has been matched by growth of crimes in this domain; not only in scams and dark-web illegal trading, but also in white-collar crimes with fraud and perjury occurring increasingly. With blockchain technology, the world of financial infidelity has become increasingly sophisticated. There is a common belief that blockchain and cryptocurrency provide means of hiding funds from the public or close associates who may not be familiar with the technology. The rise of cryptocurrency has also led to spouses hiding digital assets during divorce settlements. This study presents a use case of a couple in the midst of a divorce where one of the spouses was accused of perjury for failure to declare bitcoin holdings, obtained via Bitcoin mining, and possibly other forms of cryptocurrency and digital assets to the court. The plaintiff is entitled to fifty percent of all assets. While property, stocks, bonds, and bank accounts can easily be traced, cryptocurrency assets are more complex to trace but it is not impossible. This paper illustrates how such a case can be investigated by following the flow of funds on the blockchain, using tools such as Maltego and QLUE. The paper thus presents an investigative process that can be followed for a new category of forensic investigation.
The implementation of blockchain technology in human resources appears to hold considerable potential as a solution to problems relating to data privacy and transparency in personnel administration. In light of the fact that data security and trust are perennial issues for traditional HR systems, innovative approaches to the management of sensitive employee data are currently being researched. The current body of research does not do a good job of investigating whether or not the use of blockchain technology can effectively guarantee data privacy and transparency in human resource management and whether or not it is even feasible to do so. In this study, qualitative interviews with HR practitioners, IT specialists, and blockchain developers are paired with quantitative examinations of blockchain implementations in selected HR systems. This research aims to discover whether or not blockchain technology can successfully alleviate employee data privacy issues and promote openness in HR record keeping. The purpose of this research is to determine whether or not blockchain technology can effectively alleviate these concerns. The findings indicate that the blockchain technology has a significant amount of promise in terms of lowering the risks to data privacy and raising the level of transparency in HR procedures. The distributed ledger design of blockchain makes it possible to store employee data in a way that is both secure and impossible to alter, hence reducing the likelihood of data breaches. The study also reveals implementation barriers, which opens the way for proposals to support the broad adoption of blockchain technology in HR systems.
The article “Legal Regulation of Cryptocurrency and Cryptocurrency Operations in the European Union” offers a comprehensive examination of the evolving legal landscape surrounding cryptocurrencies within the European Union (EU). It begins by defining cryptocurrencies, highlighting their unique characteristics such as decentralization, volatility, and potential for misuse. These features pose significant regulatory challenges, as traditional legal frameworks may not be fully equipped to address them. The article delves into the EU’s response to these challenges. It outlines the various legislative measures that have been implemented to regulate cryptocurrencies and related operations. These measures aim to strike a balance between fostering innovation in the digital economy and ensuring consumer protection and financial stability. The article discusses the implications of these regulations, noting that while they have brought some clarity and security to the sector, they also risk stifling innovation if not carefully calibrated. The article explores the ongoing debates within the EU regarding the appropriate regulatory approach to cryptocurrencies. It underscores the need for a nuanced understanding of the technology and its potential impacts. The article argues that regulation should not merely react to the challenges posed by cryptocurrencies but should also anticipate future developments to remain effective and relevant. The article concludes by emphasizing the importance of dialogue and collaboration among regulators, industry stakeholders, and the public in shaping the regulatory approach to cryptocurrencies. It suggests that such engagement can help ensure that regulations are not only responsive to current issues but also adaptable to future changes. The article provides a thorough and insightful analysis of the legal regulation of cryptocurrency and cryptocurrency operations in the European Union. It underscores the complexity of the issue and the need for a dynamic and forward-looking regulatory approach. The article serves as a valuable resource for anyone interested in understanding the intricacies of cryptocurrency regulation in the EU.
Flavio Corradini, Alessandro Marcelletti, Andrea Morichetta, Barbara Re · 5 authors
Digitalization triggered a transformation in our society, leveraging recent innovations introduced by digital tech-nologies to empower real systems with advanced capabilities. Blockchain emerged as a disruptive technology to advance trustless scenarios by enforcing data immutability and change traceability. Deployed in the Blockchain, smart contracts support such transformation, enhancing the application logic toward a trust scenario. Bug in the smart contract can lead to irreversible consequences, producing faulty transactions or unexpected behaviors. Furthermore, the immutable nature of the Blockchain restricts the ability to make updates if unforeseen circumstances or necessary modifications arise. For these reasons, smart con-tracts' continuous inspection and improvement are fundamental to prevent and react to such issues. In this context, Digital Twin is an emerging approach for creating virtual replicas of assets, processes, or systems. By establishing a bi-directional connection, Digital Twin reflects the twinned entity state while simulating its behavior to enable an iterative evolution. In this paper, we propose an approach that exploits Digital Twin capabilities to support dynamic smart contract improvements. By monitoring and analyzing transactions, Digital Twin can suggest possible refinements to the developers by discovering smart contract inconsistencies or deviations from the expected behavior. Those improvements can refer to a change in logic or parameter optimization. These change proposals are then evaluated in the Digital Twin approach, which eventually updates the smart contract on the Blockchain. We assess the feasibility of the proposed approach using a train management application related to the smart transportation domain.
Abstract: Blockchain is one of the most trending technologies which plays a major role in online transactions using cryptocurrencies. The blockchain is a chain of blocks that consists of allthe transactions up to the size of 1MB. This blockchain has many properties such as decentralization, immutability, transparency, and audibility, making transactions more secure and tamper-proof. It is tamper-proof because there is no possibility to tampera block as every block in the blockchain has the hash of the previous block. And among cryptocurrencies, bitcoin is one ofthe most popular... In fact, blockchain was introduced to theworld because of bitcoins. Apart from cryptocurrency, blockchain technology can be used in financial, NYC, and social services, risk management, food, healthcare facilities, and so on. Numerous studies have examined the potential that blockchain offers inmultiple application sectors, as well as the benefits and different kinds of blockchain. This paper presents a comparative studyof bitcoins in blockchain technology and the workflow of thebitcoin, compares bitcoin and Ethereum, and provides the use of smart contracts in this emerging technology. The methodology considered for this research is the Ethereum blockchain in smart contracts using a solidity programming language.
Abstract This study focuses on the analysis of cryptocurrency regulatory developments in Europe. The aim is to review national crypto-legislation in Europe and the EU's latest initiative to create designated regulatory instruments for the crypto-economy. This study assessed whether the European Union's Regulation on Markets in Crypto-Assets (MiCA) would have the intended effect. Drawing on the results of a survey of crypto experts from five European countries, this study evaluated the effectiveness of current regulation across Europe and how it can be improved to reduce financial crimes. The findings show that a unified national legal framework for regulating transactions with crypto assets does not exist in European countries. Current crypto regulations are dictated by anti-money laundering recommendations. This study provides suggestions for improving MiCA regulation. The article offers recommendations for an international regulatory standard for crypto assets and insights for increasing efficiency in regulating DeFi, NFTs, and smart contracts.
Pompi Das Sengupta, Aakriti Chauhan, Raja Praveen K N
integrating smart contracts into the Internet of Factors (Iota) networks powered by using block chain technology presents a unique set of challenges and possibilities. Smart contracts offer an automatic technique to facilitate transaction processing and facilitate cozy and reliable statistics sharing across the dispensed Iota community. At the same time, understanding the safety implications of this technology, techniques for addressing such implications, and sensible answers for integration remains an ongoing region of research. Block chain technology is revolutionizing the structure of the Iota. By utilizing clever contracts, block chain can enable trustless, relaxed verbal exchange channels and automatic validation of transactions. It presents a unique method for safely storing, authorizing, and sharing information throughout numerous distributed nodes. Smart contracts also allow the cost-powerful and cozy execution of multiple clever contracts at the identical Iota network. The security of any Iota gadget is substantially impacted by using the integration of clever contracts. This integration calls for the addressing of troubles related to scaling, failure control, and machine integrity. It additionally calls for the robust encryption of records and the authentication of requests through virtual signatures.
이 글에서는 DAO가 무엇인지부터 시작해서 DAO의 장점과 단점, 법적 과제, 그리고 DAO의 몇 가지 예를 설명했다. 인간의 개입 없이 기능하는 탈중앙화 자율조직은 공상과학 소설에서나 나올 법한 것처럼 보일 수 있지만, 블록체인 기반 DAO는 비트코인이 탄생한 이래로 현실이 되었다. DAO는 Decentralized Autonomous Organization의 약자로 ‘Dao’로 발음된다. 한국어로는 ‘탈중앙화 자율조직’으로 번역하며, 영어로 ‘DAO’라고 쓰는 것은 드물지 않다. 분산화된 자율조직이라고 쓰는 경우도 있으나 말 그대로 DAO는 탈중앙화되고 자율적으로 기능하는 조직이다. DAO는 블록체인의 응용분야 중 하나이다. 비트코인의 발자취를 따라 많은 암호화폐 프로젝트, 서비스 및 플랫폼이 DAO로 등장했다. 또한 자동화, 원격근무 등 기업과 업무 스타일이 급격히 변화함에 따라 일부 기업은 Consensys 만큼 급진적이지는 않더라도 DAO/DAC가 될 것이다.<br/> 종래의 조직에서는 중앙에서 의사결정을 하는 이사회 같은 조직이나 대표이사 혹은 사장과 같은 사람이 있고, 그 결정에 따라 조직이 움직였다. 반면, DAO에서는 중앙조직 대신 규칙이 존재한다. 사람들의 활동은 이러한 규칙에 따라 수행되며 중앙조직 없이 자동화된 작업을 수행할 수 있다. 그러나 자동화되어 있지만 의사결정, 구현 및 사용에 인간의 개입이 포함되며 규칙기반 심의활동도 수행된다. 블록체인 기반 DAO 구현은 이러한 규칙을 프로그램으로 설명하며, 이는 종종 오픈 소스 스마트 계약으로 구현되고 커뮤니티에서 유지 관리된다.<br/> ICO를 통해 자금을 조달하고, 자금을 관리하고, 투명하고 공정한 서비스를 제공하기 위해 스마트 계약을 기반으로 다양한 기업과 프로젝트가 분산되고 자율적으로 기능하는 미래가 멀지 않을 수 있다. 자본주의 사회의 문제점으로 지적되어 온 자본집중의 불균형과 자본가와 노동자의 틀은 DAO에는 존재하지 않는다. 조직의 창립자라고 해도 기본적으로 다른 참가자와 마찬가지로 토큰 보유자 중 한 명일뿐이며 회사의 관리자, 정규직 직원 및 계약직 직원 간의 구분은 없다.<br/> 탈중앙화 사회가 실현되면 같은 생각과 희망을 가진 사람들이 위치나 지위에 관계없이 모일 수 있게 될 것이다. 다양한 사람들이 모일수록 더 많은 정보와 지식이 축적되어 선순환이 이루어지고 이는 조직의 발전으로 이어지게 된다. 그 결과 사람들이 계속 발전하는 조직에 모일 것이고, NFT나 DAO와 같은 새로운 형태의 자금 조달이 가능해질 것이다.<br/> DAO를 시작하려면 Blockchain 기술의 특성을 정확히 이해해야 한다. 향후 DAO를 시작하고자 하는 조직 운영자는 충분한 학습을 해야 할 것이다. 정부에서도 창업 초창기부터 진행해 온 블록체인 비즈니스의 지식과 개발 노하우를 바탕으로 자율적으로 프로젝트를 추진하는 조직의 출범을 지원해야 한다. 이러한 정책지원은 DAO 프로젝트 운영에 없어서는 안 될 필수 요소이다. 또한 많은 DAO 운영에서 사용하는 Discord의 출시를 지원해야 한다.<br/> DAO에는 많은 장점이 있지만 몇 가지 단점(과제)도 있다. 예를 들어, 다음 몇가지가 주요 항목이다. 우선 조직으로서의 느린 의사결정이 장애물이다. 또한 입법이 뒤처지고 있다. 또한 DAO 스마트 계약은 전 세계적으로 분산된 노드에서 실행되므로 국가 및 지역마다 다른 법률로 인해 ‘법의 충돌’ 문제가 발생할 수 있다. 비트코인과 같은 암호화폐에 대한 규제는 국가와 지역마다 다르며, 더 극단적인 경우 탈중앙화 예측 시장인 어거(Augur)는 어떻게 사용하느냐에 따라 도박 범죄를 구성할 수 있다고 한다. 지난 몇 년 동안 기술적인 문제에 대한 해결책이 등장했지만, 법적 문제에 대한 DAO는 새로운 조직 형태이며, 규제와 충돌하면서 시간이 지남에 따라 점차 명확해질 것으로 예상된다.
The article delves into a comparative study of the legal regime of smart contracts in Russia, Germany and the United States. In-depth analysis of the concept, normative support, technological and legal nature of smart-contracts is carried out, the areas of application of this tool in civil law transactions and other legal relations are highlighted. Significant conclusions were obtained. Firstly, in the legal systems under consideration there is still no unambiguous definition of a smart contract. Secondly, a smart contract is understood to a greater extent as a program code embedded in websites or mobile applications, providing a number of elements of the procedural side of various transactions, rather than as an equivalent of a civil law contract. Thirdly, the areas of application of smart contracts are constantly expanding, they are used in the work of e-government, banking, e-commerce, electoral processes, and other legal relations. This requires the active activity of legislators in the countries in question.
The process of smart contracts, from conceptualization to actual landing applications, is accompanied by the continuous development of blockchain technology. China attaches great importance to the application of blockchain technology represented by smart contracts in judicial practice, with the background of the construction of smart courts, relying on the construction of judicial blockchain, according to the unique automated execution characteristics of smart contracts, the mediation and execution of civil disputes filed as an entry point, to explore the high-quality development of the judicial trial and execution business. In the current judicial practice, smart contracts face a lack of legal norms, technical construction loopholes, and information security risks. To guarantee the reasonable and compliant stable operation of smart contracts within the legal framework, it is necessary to clarify the legal positioning of smart contracts, strengthen the construction of the rule system for the judicial application of smart contracts, introduce the ODR to broaden the rights' relief channels, and at the same time, encourage the participation of diversified subjects in the construction of the judicial blockchain, and establish the legalized review mechanism of smart contracts.
Aybika Beksultanova, Timur Aygumov, Alexey Tkachenko
Currently, one of the most vital issues concerns dealing with smart contracts is security. Concerns over inefficiency, security, and fraud are grounded, and ignoring them when using the blockchain network to create smart contracts can result in extremely high additional costs. This article covers the most common tools for auditing smart contracts. The purpose of this article is to compare the most popular software tools to analyze smart contract security. For this purpose, the following types of smart contract vulnerabilities were investigated. This article provides examples of the major smart contract vulnerabilities, and given the relevance of digital agreements and the catastrophic consequences of errors, recommendations have been offered to redress smart contract vulnerabilities.
В статье рассмотрены особенности цифровых финансовых активов (ЦФА) – качественно новой экономической категории, имеющей значительный потенциал в качестве инструмента инвестирования и финансирования бизнеса. Представлена краткая характеристика правового регулирования ЦФА, необходимая для понимания их сущности и состава входящих объектов. Выявлены основные преимущества, недостатки и возможные перспективы развития ЦФА в России. Introduction. Among the most promising cutting-edge tools that can significantly transform and improve the efficiency of business operations are, first and foremost, artificial intelligence, digital and cloud technologies, distributed ledger technologies, robotization, and many others. The emergence of fundamentally new objects, such as digital rights, including digital financial assets, cryptocurrency and others, necessitates an examination of their economic substance and an evaluation of the opportunities and challenges associated with their practical application. This article aims to present the findings of a study on the economic nature of digital financial assets (DFAs), their legislative and regulatory mechanisms, the benefits and risks they pose, and an analysis of their potential use in Russia. Results. The article focuses on the critical aspects of legal regulation of the new economic categories, including digital rights and DFAs. It uncovers their essence and features and presents various perspectives of specialists on the primary characteristics of DFAs. The article outlines the crucial prerequisites for the development of the global and domestic DFA market (the active use of blockchain technology, widespread use of cryptocurrencies, and global and macroeconomic changes). It provides data on the volume of transactions with DFAs in Russia for 2022-2023 and an evaluation of market growth prospects. The article also presents the main advantages of DFAs, such as investment attractiveness, security and transparency of records entered into the blockchain, the possibility of "splitting" a significant investment asset into parts, the lack of risk of unauthorized changes, and others. It also discusses the challenges of their practical use. The study concludesthat the use of DFAs as a tool for attracting investment (also by medium and small businesses) and financing, with an understanding of their inherent risks, will facilitate effective financial and investment decision-making. It will also assist in the optimization of business processes and interactions with business partners.
Since the evolution of bitcoin, Blockchain technology has shown promising improvement and application prospects. However, blockchain gained momentum when Vitalik Buterin launched the Ethereum platform in July 2015. It includes smart contracts (SCs), a program to automate, enforce, and verify a set of rules for a transaction to be valid. Since some SCs handle millions of dollars, their security becomes critical. In the past, some hackers have exploited the vulnerabilities in Ethereum SCs and have caused significant losses to the community and users. However, to use blockchain to its full potential, we need SCs; otherwise, it is just a third-party free, decentralised system for transferring money. This paper focuses on the security aspect of SCs in terms of security vulnerabilities and tools developed to discover and locate these vulnerabilities. To prove the correctness of SCs, this study also focuses on formal verification techniques used to model and verify SCs.
International Scientific Conference Transformation processes of the economic system in the context of modern challenges : Conference Proceedings (February 2–3, 2024. Klaipeda, Lithuania). Riga, Latvia : Baltija Publishing, 292 pages.
The 2020 pandemic accelerated the tech revolution around the world, particularly in relation to commercial transactions; the borders of most nations were closed due to the pandemic, thus increasing the use of Blockchain technology in commercial transactions and the proliferation of smart contracts. A distinctive feature of a smart contract is its ability to be self-executory. However, as Sophie Nappert observed, where there are human minds transacting, whether ‘on-chain’ or ‘off-chain’, there will always be disputes. This paper finds that, due to the sue generis nature of smart contracts, off-chain systems of dispute resolution are not adaptive to the characteristics of Blockchain transactions or to disputes arising out of smart contracts, thus indicating the need for Blockchain arbitration. This paper discusses some of the legal impediments and implications that come with Blockchain arbitration and the need for Blockchain arbitration to be adapted to some of the principles that guide off-chain dispute settlement so as to make it a fair system of dispute resolution. The paper argues that Blockchain arbitration is a sue generis system of dispute resolution, which draws its authority from the Lex cryptographia legal order, and as such, need not be subjected to the legal authority of any nation. Accordingly, this paper, while examining the legal and tech perspective of Blockchain awards, advocates for the recognition of this new form of decentralized arbitration and suggests a real-world regulation of the legal order contained in the Blockchain.