The paper focuses on the legislative changes from 2021 that the Law on Digital Assets introduced into the legal system of the Republic of Serbia and contextualizes the amendments from the perspective of existing practice. Introductory part evaluates the issue of whether blockchain technology can secure trust and safety in the transactions that are executed via Internet by parties from all over the world, as well as reasons that created the regulatory framework for values that are transferred over distributed ledger technologies infrastructures. Main part of the paper examines in detail the legislative solutions within the Law on Digital Assets as well as key exceptions and terms and their impact on the local economy. The section is followed by an overview of the draft legislation in EU in the field as well as how it may impact Serbian economy as a third country. Aside from concluding remarks on legislative changes domestically, the paper outlines potential upcoming challenges related to blockchain and instruments that may require a different approach in regulation.
<h5 class=annotation lang-ru sigil_not_in_toc>В статье обсуждается английское дело, посвященное компьютерному вымогательству. Однако это не уголовное дело, а гражданско-правовой иск, в котором жертва вымогателей пытается вернуть себе биткоины, уплаченные киберпреступникам в качестве выкупа. В деле решается ряд непростых вопросов гражданского и гражданско-процессуального права, специфичных для споров вокруг криптоактивов. В том числе необычайно важный вопрос о гражданско-правовой квалификации криптовалюты: суд признает, что криптовалюта является «имуществом».</h5>
<h5 class=annotation lang-ru sigil_not_in_toc>В статье обсуждается решение высшего суда Сингапура, рассмотревшего вопрос о том, может ли сделка, совершенная между собой двумя компьютерными алгоритмами (условно говоря, роботами), быть признана недействительной ввиду существенного заблуждения одной из сторон.<br /> Ключевая проблема — как определять ментальное состояние сторон такой сделки на момент ее совершения, если владельцы роботов лично в сделке не участвовали? Большинство судей считает, что стороне-ответчику вменяется ментальное состояние программиста, который программировал ее робота. Судья из Англии, выступивший с особым мнением, полагает, что стороне вменяется ментальное состояние «разумного трейдера», если бы он принимал участие в этой сделке вместо ее робота.<br /> Термин «смарт-контракт» в деле не фигурирует. Однако многие сформулированные в нем тезисы относятся в том числе и к смарт-контрактам, понимаемым как компьютерные алгоритмы, существующие и исполняемые в блокчейнах.</h5>
The conclusion of smart contracts is placed on the blockchain platform due to the special features of this platform, including the two features of transparency and decriminalization. After being completed on the blockchain network, these contracts' transparency feature enables the public to observe and offer them. In this case, all the people who have access to this platform have the possibility of knowing what was transferred by whom to whom, and this not only prevents the occurrence of many related lawsuits but also many crimes related to property.
The article analyzes the positive and negative aspects of the use of smart contracts in various business areas, which respectively give it an advantage or disadvantage compared to traditional civil law contracts. It has been determined that due to the automatic execution of the transaction, as soon as the agreed conditions are fulfilled, smart contracts allow eliminating or minimizing a number of transaction costs that accompany traditional contracts. When using a smart contract, the possibility of improper execution by one of the parties is practically eliminated, since it cannot be violated. It is the difficulty of modifying or terminating smart contracts that is an advantage over other contractual structures. The complexity of changing and terminating smart contracts is a guarantee of their stability and the immutability of the contractual terms that were originally agreed by the parties. But at the same time, smart contracts, eliminating some of the problems of traditional contracts, create new ones when using them. The article also notes that smart contracts are distinguished by both vulnerability in computer code and insufficiently effective legal regulation. The problem of oracles when using smart contracts is considered, which consists in the need to trust the information received from them. It is concluded that due to the vulnerability of a smart contract, like any modern digital technology, the existence of a written original of the contract, subsequently expressed in a smart contract, will make it much easier for the parties to use both judicial and extrajudicial methods to protect their rights. It has been noted that due to the growing use of smart contracts in civil circulation, the number of disputes arising in connection with this, considered both in state courts and in non-state bodies (arbitration courts), will also increase.
The issues of sustainable development of territories are increasingly coming into the field of vision of scientists and practitioners. The institutional framework of the region's infrastructure implements the principles of sustainability and adaptability. The use of smart contracts can facilitate strengthening of the communication stability between subsystems and elements of the region's economy. The practice of using smart contracts in various spheres of activity (banking sector, insurance, transportation, delivery of goods, government services, etc.) demonstrates their ability to maintain the intended development trajectory, despite the influence of external factors. The possibilities of using smart contracts in the regional economy include holding a vote of citizens on a particular vital issue; organization of cadastral registers and standard electronic documents. Also they include carrying out initiatives to register companies and support small and medium-sized businesses; introduction of a mechanism for tracking shares and their financial support; management of communication between business entities and individuals in terms of compliance with environmental standards, including the provision of regulatory and reference documentation. We are not talking about the formalization of the entire economic system with smart contracts and the creation of a "digital region". The formulation of the research problem is associated with the use of smart contracts as a connecting link in the institutional framework of the regional economy, contributing to overcoming the state of instability of infrastructure in the digital economy. In recent years, support for the sustainable development of the territory has become an urgent agenda for the development of many institutions. The principles of sustainable development, or ESG -Environmental, Social, Governance, are formulated, implying a responsible approach to environmental issues, social and corporate cooperation. Obviously, in order to work according to ESG principles, Russian regions need institutional transformation. Digital tools (smart contracts, block chain, cloud technologies and artificial intelligence) create additional opportunities for the implementation of the ESG agenda. The sequence of actions is the following: analysis of the goals achieved in this direction on the basis of digital technology tools; development of a regional ESG policy (a concept for the development of a territory based on ESG principles) and informing the public (publication of the concept in the public domain) about the directions and priorities of its implementation. Then it is as follows creation of an institutional basis for the implementation of regional ESG-policy; defining the objectives of institutional support; formation of measures for the implementation of regional ESG-policy, including time limits and responsibility for their implementation.
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Economic and Technological Systems Analysis
Digitalization and Economic Development in Agriculture
Lately, more and more attention has been paid to the phenomenon of smart-contracts (SC) in legal research. The SCs have already found their application in many aspects of society life and are particularly common in the regulation of legal relations in the area of automated financial services, which may include lending, mortgages, insurance, etc., as well as in public services, including various types of voting, elections, document management, supply and storage. The practical dissemination of SCs is carried out without a conceptual approach in the legal regulation of this object, but also without a unified terminology. The science begins developing approaches to study of the legal nature of SCs and offers options for their legal regulation have been proposed, each of those, of course, has its benefits and disadvantages, which is explained by the multifaceted nature of this phenomenon. First of all, it means a qualitatively new level of functioning of a smart-contract where the technical component overlays on traditional types of legal relations. Both authors of the article used scientific methods such as analysis, synthesis, comparison, induction and deduction. Special attention is paid to different options for understanding the legal nature of smart contracts, proposed by European and domestic scientists.
Universidad Regional Autónoma de Los Andes. Ecuador., A.J.R Fernández
Blockchain technology has put in the hands of humanity the solution to many practical problems that are present today in various organizations. Smart contracts are part of the improvements that were introduced from the use of this technology and were widely accepted by users in general. Various applications are included in the development of this type of platform, which has reached the legal field as a solution to the current problems of Contract Law. The selection of the best alternative, when hiring its implementation, leads to not making optimal use of resources during the process. That is why the main objective of the research was focused on designing and implementing a procedure, in the form of an exercise, for the selection of a smart contracting system in the legal field. In its fulfillment, the authors had the support of a heterogeneous group of experts in the field who determined the factors for their selection and their respective weight through the Kendall concordance method. Subsequently, the use of these factors in the VIKOR (VlseKriterijumska Optimizacija I Kompromiso Resenje) method made it possible to determine the best alternative to hire.
Introduction: the article is devoted to the analysis of legal regulation of smart contracts, the concept, content, and scope of their application. The author analyzes in detail foreign expe- rience of using smart contracts and suggests possible options for expanding the application area. The article also has a separate section that looks at smart contracts as compared with traditional institutions of civil law. Smart contracts are expected to find application in almost all areas of life in the future. As is often the case with new technologies, the use of smart con- tracts raises a number of civil law issues. Blockchain technology makes it possible not only to create new means of payment but also to autonomously manage almost any process. It can be used for individual contracts and even for the creation of autonomous decentralized systems. Purpose: to provide an insight into the institution of smart contracts and define their role in civ- il law. Methods: empirical methods of comparison, description, interpretation; theoretical me- thods of formal and dialectical logic; special scientific methods such as the legal-dogmatic me- thod, the methods of interpretation of legal norms and comparative legal research. Results: smart contracts are computer programs that perform legally significant actions according to predetermined algorithms set out in the form of a so-called program code. In practice, they are especially important in connection with the development of blockchain technology or (more generally) distributed ledger technology. Conclusions: the term ‘smart contract’ was defined by Nick Szabo in the 1990s as a sequence of commands represented in digital form, including transaction protocols that execute these agreements. Thus, smart contracts formulate rules and sanctions for agreements and execute them automatically. These are not necessarily contracts in the legal sense, but they are capable of controlling, tracking, and documenting legally signif- icant actions. Smart contracts can also be implemented using traditional, for example, mechan- ical technologies (e.g. in a vending machine). However, blockchain and distributed ledger tech- nologies make it possible to implement incomparably more complex rules and enforcement me- chanisms and offer a decentralized environment with an integrated settlement system. From a legal point of view, smart contracts perform two functions. On the one hand, they serve as a functional equivalent of a contract since their technological code can identify the services to be exchanged as well as the conditions under which they must be provided. Being the normative order of the digital, this code formulates the program of obligations of the parties. It resembles the legal order of a contract, without necessarily coinciding with it. On the other hand, smart contracts serve as a tool for the execution of contracts – by controlling, monitoring, and docu- menting the exchange of services. They can also facilitate the execution of conventional con- tracts by translating their provisions into a technical code, verifying the occurrence of agreed- upon events, and enforcing contracts. Smart contracts are suitable for contractual relation- ships, for example, for processing payments or delivering goods without the participation of the parties and an intermediate step in the form of direct execution. Smart contracts are gaining more and more popularity, especially in the financial sector. In addition to the so-called token economy (cryptocurrencies, ICO, etc.), there are also discussed algorithmic ETFs, online plat- forms for loans or project financing. Another important area of application is sharing economy. From a legal point of view, smart contracts can either be the subject of a contractual agreement or generate it on their own. There is sometimes put forward a thesis under the motto ‘Code is law’ that smart contracts give rise to a largely autonomous legal system and/ or are not subject to applicable law. However, this appears to be an erroneous conclusion
The article is devoted to a topic of great scientific and practical importance in the modern context of creating a digital economy ecosystemб to the smart contract phenomenon. The article focuses on the foreign civilistic doctrine of the smart contract study. The main discussion questions about the legal and technological nature of the smart contract, the ways of its implementation in the current contract law of each country, the approaches of national legislators to solving this issue and the functional nature of the smart contract are considered. The main disputable problems are the legal and technological nature of the smart contract, the ways of its implementation in the current contract law of each country, the approaches of national legislators to solving this problem and about the functional nature of the smart contract. The article also involves a comparative legal aspect: it analyzes the approaches of the Russian legislator and representatives of the domestic legal doctrine to the smart contract place in the pandect system of Russian civil law in comparison with the foreign legal systems settlement of similar issues. It is noted that using the positive experience of the smart contracts legal regulation should be taken into account when creating and correcting the regulatory platform of the digital economy in the Russian Federation. The article evaluates the legal innovation of Part 2 of Article 309 of the Civil Code of the Russian Federation (RF CC). The description is given of the innovation developers positions given in the Explanatory Note to the relevant draft law; the investigation is performed on the technological terms used in the current version of the RF CC with regard to the electronic form of a deal and smart contract. In addition, the article raises the problem that is well known to the foreign legal doctrine: the problem of the computer code credibility and the distrust of the counterparties of each other. Attention is paid to the advantages of the smart contract, which are discussed by foreign legal scientists, as well as representatives of other related sciences. In the conclusion of the article, the main findings are given that demonstrate the authors’ view on the issues considered in the article.
В статье рассмотрены NFT как самостоятельный объект правового регулирования. Определена сущность non-fungible tokens. Выделены особенности реализации невзаимозаменяемых токенов. Рассмотрены проблемы правовой защиты NFT и способы их решения.
Blockchain smart contracts are emerging research area among Industrial communities and academics. Blockchain enabled Smart contracts provide automatic processing, security in decentralized environment and removes the barrier of trusted third party. Insurance industry is one of the targeted areas for hackers, and takes more time for processing. The Insurance industry will change dramatically when integrating with Blockchain technology, with high degree of security, real time working and minimum processing cost. Writing smart contracts are very challenging task as Blockchain is secure itself, but sometimes blockchain enabled smart contracts leads to vulnerabilities, have to face scalability & privacy issues also. Authors gives overview of Hyperledger Fabric as it is standard platforms for implementing smart contracts for permissioned blockchain, and proposed a research framework for smart contracts use cases in insurance sector. Second, the technical and legal challenges, as well as the current research are discussed. This paper is aimed to provide guidance for future research in Blockchain smart contracts in insurance industry.
The article analyses legislative initiatives aimed at regulating the use of blockchain in corporate governance. The tokenisation equity opens up new opportunities for companies to attract investment. As a result, many traditional companies are interested in converting traditional securities into security tokens. Countries aspiring to lead the blockchain industry are seeking to establish a legal framework for security tokens and a blockchain-based registration system for them. The use of blockchain brings with it not only the digital transformation of companies, but also the emergence of a new type of organization - decentralized autonomous organization (DAO). Existing legal forms are not appropriate for the DAO, which requires the creation of a new type of legal entity. Changes to corporate law that address these trends will eliminate legal risk and drive digital transformation of companies
The article discusses the features of non-interchangeable tokens from the point of view of law. The author reveals and systematizes the rights to NFT, offers solutions to existing problems. In addition, the article proposes the concept of hybrid rights, invented by the author.
Abstract:\n\n \n\nSo far, blockchain has been well acknowledged for its potential uses in the financial and banking industries. As a decentralized and distributed technology, blockchain, on the other hand, may be used as a powerful tool for a wide range of everyday applications. Among the many applications sectors where blockchain is expected to have a significant influence, finance and banking is one of the most important. In the contemporary financial and banking systems, it produces a broad variety of options and possibilities. As a result, the purpose of this paper is to investigate the possible uses of blockchain technology in present financial and banking systems, as well as to emphasize the most critical needs for such systems, such as trust less and transparent financial and banking systems. In addition, this article outlines the hurdles and roadblocks that must be overcome before blockchain technology can be successfully used in financial and banking institutions. In addition, we present the smart contract for blockchain-based financial and banking systems, which is critical for setting pre-defined agreements among multiple customers.