Blockchain Papers

Yan Kovalenko

No abstract is available for this record.

Yan Kovalenko

No abstract is available for this record.

Yan Kovalenko

No abstract is available for this record.

Yan Kovalenko

No abstract is available for this record.

Shuk-Mei Ho, Tsung-Che Wu, Boyu Chen, Tzer‐Long Chen · 5 authors

The insurance claim process is quite cumbersome; it is time-consuming, with high personnel costs from manual review. It may even take several months to complete the entire process. Therefore, how implementing insurance claim settlement automation to reduce costs, improve efficiency, reduce claim processing time, and increase client satisfaction is a common issue the insurance industry must face. This study explores the application of smart contracts in the casualty insurance settlement process to achieve the effect of automatic claim settlement and double protection for special accidents. When the insurance industry conducts insurance claim reviews through the characteristics of blockchain and smart contracts, such as openness and transparency, anonymity, and automation, the review process can be curtailed, and the premium can be directly transferred to the bank account of the insured. Thus, the purpose of automating casualty insurance claims is achieved through smart contracts.

Kweon JIhye

Decentralized Autonomous Organizations (DAOs), based on blockchain technology, are organizations that operate autonomously according to agreements made among members rather than through a centralized authority. Utilizing blockchain’s attributes of decentralization and cryptography, DAOs embody decentralization, autonomy, and transparency, establishing themselves as a distinctive governance model. However, despite the increasing prevalence of DAOs globally, their legal nature remains ambiguous, leading to unclear legal relationships and insufficient protection for participants and third parties. In 2021, Wyoming proactively established the Wyoming Decentralized Autonomous Organization Supplement, creating a foundational legal framework for the formation, operation, and dissolution of DAOs. Wyoming recognizes DAOs as a special form of LLC. However, considering the various types of DAOs in operation, legislation that reflects each organization's characteristics, rather than prescribing a single legal status, is needed. Furthermore, this study reviews elements within Wyoming’s regulations that may conflict with DAOs’ core values of decentralization and anonymity, highlighting areas requiring caution in the legislative process. Finally, to address the technical risks and potential centralization tendencies within DAOs, this paper suggests imposing a high duty of care on key developers, introducing clauses to exclude indemnification for core members, and formalizing dispute resolution procedures in advance.

Azizjon Nazarov

This paper examines the tension between code-based execution and legal enforceability in smart contracts used by cryptocurrency exchanges. As decentralized finance grows in prominence, there is an increasing need to balance the immutability and automation of blockchain-based agreements with traditional legal protections and dispute resolution mechanisms. We analyze current approaches to liability allocation and conflict resolution in major crypto exchanges, identifying key challenges in harmonizing algorithmic governance with existing contract law. Case studies of recent exchange hacks and failures are used to illustrate the limitations of purely code-based systems. We then propose a hybrid model that preserves the efficiency of automated execution while incorporating safeguards for human intervention in exceptional circumstances. This framework aims to enhance user protections, regulatory compliance, and overall trust in decentralized financial infrastructure. Our findings have implications for exchange operators, regulators, and contract law as it evolves to address blockchain-enabled agreements.

Soumya Kanti Datta

Although smart contracts have emerged as a key innovation for industries, siloed development and deployment of smart contracts pose numerous challenges to mass adoption and interoperability. This paper presents a comprehensive gap analysis of cur- rent standardisation efforts in smart contracts, focusing on common requirements, data formats, schema, and software templates. Through an examination of existing standards, best practices, and identified gaps, this paper proposes contributions to address these challenges. By advocating for cross-platform compatibility, scalability, and maintainability, it aims to advance the standardisation of smart contracts and foster their broader adoption in the industry.

R.M.O.H. Bandara, M.D.T.E. Abeynayake, I.E. Illeperuma, B.A.I. Eranga

Disputes frequently arise in construction projects due to the complexity of the processes and challenging environment, resulting in cost overruns, delays, wastage, and low productivity. Thus, the Construction Industry (CI) is enthusiastic about innovative dispute mitigation measures by incorporating digital technologies. Consequently, Smart Contracts (SCs) have emerged as a pioneering approach to digitise construction contracts and thereby mitigate construction disputes. Accordingly, this research aims to investigate the applications of SCs to mitigate disputes in the Sri Lankan CI. The research aim was approached through an explanatory mixed method. Initially, a questionnaire survey was carried out to collect quantitative data which was followed by qualitative expert interviews. Quantitative data were statistically analysed through Mean Weighted Average (MWA) and Relative Importance Index (RII) whereas qualitative data were analysed through content analysis. The study identified the root causes of construction disputes in the Sri Lankan context as poorly written contracts, poor preparation and approval of drawings, lack of communication and coordination, poor supervision and site management, and contain of contradictory and inaccurate information in the contract documents. The findings highlighted that SCs can significantly reduce construction disputes by replacing ambiguous processes with clear, automated processes. By linking payments to milestones, storing project data transparently, and potentially triggering actions based on safety or quality data, SCs streamline communication, ensure everyone plays by the agreed-upon rules, and thereby minimise disputes. Future researchers are suggested to explore the practical challenges and strategies for implementing SCs in the Sri Lankan CI.

Javier Martínez Boada

El uso del comercio electrónico para celebrar relaciones de consumo cada vez toma más protagonismo en la sociedad de la información. El constante desarrollo de las tecnologías hace que las plataformas existentes puedan beneficiarse de sus características; sin embargo, también traen consigo diferentes cuestiones jurídicas que deben mitigarse a fin de proteger los intereses y derechos de los usuarios. La tecnología blockchain es una de las tecnologías que viene a revolucionar el ámbito de las relaciones electrónicas B2C gracias a su carácter transnacional, descentralización, garantía de confianza, inmutabilidad y a una de sus funcionalidades más características: los smart contracts. Este tipo de acuerdos se distinguen por su automatización y autoejecución, caracteres que a priori pueden poner en riesgo la legislación existente sobre consumidores y usuarios. Asimismo, las oportunidades que brinda blockchain de cara a que los usuarios puedan actuar de forma irreconocible puede poner en jaque la normativa encargada de determinar la competencia judicial internacional y la ley aplicable a las relaciones jurídicas de consumo B2C. Este trabajo analiza la aplicabilidad de los smart contracts en el ámbito del comercio electrónico, en especial en el de empresas con consumidores (B2C) y estudiar los posibles inconvenientes que generan sobre la normativa existente a fin de analizar si es necesario adaptar la legislación a estas tecnologías.

David Frisch, Nicole Dalrymple

The Uniform Law Commission and American Law Institute have recognized the need for commercial law to govern digital transactions and responded with the proposed addition of a new article to the Uniform Commercial Code (the “Code” or “UCC”), Article 12. Article 12 will govern the transfer of property rights in a particular category of digital assets (controllable electronic records), which would include commonly known digital assets, such as bitcoin and non-fungible tokens (“NFTs”). Although the addition of Article 12 should provide more certainty in transactions involving current and emerging technologies, there is a fundamental problem with the article as it is currently drafted, which, left unresolved, will instead invite legal uncertainty and litigation. The problem is the drafters’ choice to cast the “qualifying purchaser” in the role of the dramatis personae of Article 12. Article 12’s “qualifying purchaser” benefits from a generous rule that allows them to take controllable electronic records free from competing claims. The drafters include a person who obtains a controllable electronic record from a thief or hacker as someone who could be a “qualifying purchaser.” However, in order to be a “purchaser” under the current definition in the UCC, a person must take through a transaction that creates an interest in property. Thieves and hackers obtain no property interest when they steal a controllable electronic record, so a person who takes a controllable electronic record from a hacker could not be participating in a transaction that creates an interest in property. Thus, they could not be a “qualifying purchaser,” as the drafters claim. Most of the uncertainty of the result could have been avoided had the drafters chosen a term other than “purchaser” to describe the beneficiary of Article 12’s liberal take-free rule and defined it in a manner that would effectuate the drafters’ statutory aim. However, despite making the drafters aware of this glaring issue, they have failed to remedy the mistake. This is unfortunate and will likely lead to legal uncertainty and, thus, needless litigation after the article’s enactment. Why rely on courts to tweak sections of the Code if ambiguities are recognized and can be eliminated by careful drafting? If inartful statutory drafting is a source of uncertainty that can easily be reduced without offsetting social costs, efforts should be made to do so.

Enrico Bonadio, Andrea Borghini

Some issues on the horizon may pose novel types of questions, especially relating to new technologies or new applications of existing technologies. We could not include those issues in this volume for lack of sufficient data from the field, e.g., no real-world dispute, or no ruling from a court. But it is worth mentioning a selection of potential cases to come: we chose artificial intelligence, non-fungible tokens, and the metaverse, as it is likely that intellectual property–related cases and litigations in these domains will soon become very relevant, with repercussions that may be felt by the whole food industry.

Bangjie Zhu, Jiaqi Yin, Sini Chen, Huibiao Zhu

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.

young Sik Yang

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.

Joyce Quintino, Carina Oliveira, Rossana M. C. Andrade

International audience

Olawole Akomolafe, Babajide Oluwaseun Olaogun, Michael Olumuyiwa Adesuyi, Victor Ukara Ndukwe · 5 authors

The exponential growth of international trade and cross-border supplier transactions has created unprecedented challenges in dispute resolution mechanisms, particularly in terms of cost, time efficiency, and jurisdictional complexities. Traditional dispute resolution methods, including litigation and arbitration, often prove inadequate for addressing the dynamic nature of global supply chains, where transactions occur across multiple jurisdictions with varying legal frameworks. This research presents a comprehensive smart contract-based dispute resolution model specifically designed for international supplier transactions, leveraging blockchain technology's immutable and transparent characteristics to create automated, efficient, and enforceable resolution mechanisms. The proposed model integrates advanced algorithmic decision-making processes with established international commercial law principles, creating a hybrid system that maintains legal validity while significantly reducing resolution timeframes and costs. Through extensive analysis of existing dispute resolution frameworks and emerging blockchain technologies, this study develops a multi-layered architecture that accommodates various transaction types, dispute categories, and stakeholder requirements. The model incorporates automated evidence collection, intelligent contract interpretation, and graduated escalation procedures that ensure fair and equitable outcomes for all parties involved. Key findings demonstrate that smart contract-based dispute resolution can reduce average resolution times by 73% compared to traditional arbitration methods, while maintaining high satisfaction rates among participating parties. The model's effectiveness is particularly pronounced in standardized transaction disputes, where algorithmic decision-making can process cases within hours rather than months. Additionally, the integration of reputation systems and performance metrics creates incentive structures that promote compliance and reduce dispute frequency over time. The research contributes to the growing body of knowledge in legal technology by providing practical implementation guidelines, technical specifications, and regulatory compliance frameworks necessary for widespread adoption. The model addresses critical concerns regarding enforceability, jurisdictional recognition, and integration with existing legal systems, providing a roadmap for organizations seeking to modernize their dispute resolution capabilities. Furthermore, the study examines the socioeconomic implications of automated dispute resolution, including accessibility improvements for small and medium enterprises and potential impacts on traditional legal practice.

K.S. Ilesanmi, S.O. Ayeni, O. Kufoniyi

The advantages of publicly distributed, transparent, accountable, traceable, safe, and well organized database ledger has made the blockchain technology gained popularity and acceptance. As the world keeps growing in the knowledge and the adoption of the technology, it is very important to practically harness the opportunities in this technology in land administration system to combat the insecurity, poor database and copyright challenges facing land ownership transactions in the Cadastre System in developing countries. The aim of this paper is to examine the practicability of harnessing the Web3 Technology in Land Ownership Transactions with an objective to mint and transact a Registrable Instrument on a cryptographic blockchain. To achieve this, two Non- Fungible Token (NFT) accounts were created on Core blockchain, two templates of survey plans were also minted into an Art NFT on the same blockchain. The Minted NFTs were transacted (transferred and sold) between the two accounts on the YoungParrot NFT marketplace. These two transactions (sales and transfer) were completed, recorded and stored on the blockchain public ledger, with evidence that can be traced and viewed on the blockchain using the transaction hash/ID. The blockchain transaction was found to be fast, effortless, secured and organized on the blockchain transaction ledger, hence presenting the Web3 blockchain Technology as a possible solution to the challenges facing the Cadastre System. However, the acceptance of the technology in land administration, land ownership and transactions still face some other administrative challenges which this paper further addressed.

Wang Yujia

Blockchain technology, with its characteristics of decentralization, immutability, and transparency, has introduced an unprecedented trust mechanism to judicial record-keeping. Amid challenges faced by traditional methods, such as vulnerability to tampering and difficulties in tracing, blockchain ensures the authenticity and integrity of evidence through distributed ledgers, significantly enhancing the credibility of legal evidence and judicial efficiency. As blockchain applications in judicial record-keeping advance, issues including ambiguous review standards, lack of industry regulations, concerns over technology maturity and security, as well as inadequate public awareness, have emerged as areas that cannot be overlooked. Looking forward, blockchainbased judicial record-keeping will progress from isolated implementations towards integration across the entire judicial system chain. Efforts should be directed towards establishing review procedures and recognition standards tailored for blockchain records, fostering a unified deposition platform and standards, intensifying talent cultivation and education, refining evidence examination processes, and advocating for the development of new evidence rules that accommodate the unique attributes of blockchain, thereby promoting justice and efficiency in the judiciary.

Filippo Zatti

The rapid advancement of digitization and decentralization is heralding a new era in social and economic organization. As nation-states grapple with the impact of (post-)globalization and technological innovation, increasing attention is being paid to blockchain technology's potential to enable the emergence of new governance structures, such as decentralized autonomous organizations (DAOs) and network states. This chapter analyzes whether DAOs could provide a viable framework for addressing the needs of future societies while maintaining fundamental principles such as democratic processes and the rule of law.

Hui Gong

Here, we embark on a comparative analysis of token definitions as articulated by leading financial regulatory bodies across the globe. The chosen regulators represent the financial epicentres of the modern world – entities that not only influence global financial trends but also signal the regulatory future of burgeoning technologies. This section underscores the importance of understanding token definitions, given their critical role in determining the scope of regulation, compliance requirements and the overarching legal treatment of digital assets.

Mehdi El Harrak

For international issues, Private International Law (PIL) experts traditionally apply the law of the country with the most significant connection. However, it is often claimed that DLT features, which are immersed in a digital world, cannot be localised or have any connection with a traditional legal order. Is it then possible to determine the law applicable to smart contracts? Before answering this question, this chapter characterises smart contracts in PIL. There are various types of smart contracts: they could be used either to perform a transaction between two parties or to serve as the backbone of a Decentralized Autonomous Organization (DAO). It is then a prerequisite to analyse the different types of smart contracts before characterising them. This chapter seeks the most relevant connecting factors to determine the law applicable to smart contracts.

F.C. Villata

Technological features of cryptocurrencies have been raising a number of challenges for lawyers, in particular those practicing Private International Law (PIL), in that (i), cryptocurrencies are intangible, (ii) they exhibit a wide range of different features that, to add further complexity, evolve in parallel with technological developments, (iii) the identity of cryptocurrency users – i.e., everyone who is involved in the process of creation and transfer of cryptocurrencies – is, at minimum, not easy to trace, since it is protected through pseudonyms or, even, full anonymity, (iv) cryptocurrencies are set for more than one usage, i.e., both as a payment instrument and a form of investment (albeit a very risky one!). Even more relevant, (v) cryptocurrencies have an intrinsically cross-border reach, since they are based on decentralised distributed ledgers, potentially spanned all over the world, with no connections to any particular state, allowing value to be transferred between users across borders at a very high speed, not conditional on the location of the transferor and the transferee. Finally, (vi) it is extremely difficult to impose legal restrictions on their circulation, including territorial restrictions, not only because of the decentralised nature of said ledgers, but also because of their inherent autonomy vis-à-vis the law. The aforementioned characteristics of cryptocurrencies and, in particular, their intrinsic cross-border reach prompt the question of their PIL regime and, namely, (i) the need to identify, among the existing PIL rules, those which are applicable to transactions involving cryptocurrencies, both as payment instruments and as (possible) store of value, and to investigate whether those rules are suitable for framing them, either in terms of legal characterisation (“pure” cryptocurrencies neither represent nor give a claim against an issuer) or of connecting factors and other techniques to establish the applicable law. Following the partly negative answer to the first question, the chapter explores the many legislative options for differentiated PIL rules on cryptocurrencies, in comparison not only to traditional assets, but also to other crypto assets. Finally, the paper calls for a comprehensive conflict-of-laws regime for proprietary effects of transactions over cryptocurrencies, based on the elective situs and some requirements in terms of objective connection of the selected law, coupled with a fall-back rule, which should provide different sub-rules for permissioned and permissionless systems

Wenqian Zhao, Meghana Patibandla, Junhua Ding

Ensuring the privacy in smart contracts is critical to the success of the technique. Adequately testing privacy in smart contracts is a practical and effective way for ensuring the privacy. In this research, we experimented with a new approach that leverages the capacity of generative AI for automated testing privacy in blockchain based smart contracts. Generative AI tool ChatGPT was used for modeling privacy in smart contracts and producing tests according to the generated privacy model. The capacity of ChatGPT could have the potential for producing relatively comprehensive privacy requirements and adequate tests. We implemented a smart contract for managing real estate investment in Solidity based on the Ethereum blockchain platform and demonstrated the procedure and effectiveness of the proposed approach.

V.I. Lehenko

The article is devoted to the study of the current legal regulation of virtual assets in the Hong Kong Special Administrative Region of the People’s Republic of China. The author analyses the advantages and disadvantages of the relevant legal framework, as well as the possibility and feasibility of implementing the most successful solutions into Ukrainian legislation.
 Due to the lack of in-depth studies that would combine the main regulatory norms and definitions and provide a general overview of this regulatory system, it became necessary to study in detail the current legal system of the Hong Kong Special Administrative Region of the People’s Republic of China, which is characterised by high autonomy from the rest of the PRC, and to identify the institutions that perform the functions of a regulator of virtual assets.
 Next, the author provide a legislative definition of virtual assets and their classification. Unlike other jurisdictions, the Hong Kong Special Administrative Region of the PRC focuses on the key features inherent in this particular object of civil rights, and excludes from the definition other objects that have similar features but are already regulated separately.
 The common law system makes it possible to regulate certain aspects of the circulation of virtual assets through precedents, which helps to quickly adapt to changes in this market, where new concepts and civil law relations emerge every few years. For example, it was through precedent that it was determined that cryptocurrencies are property and can therefore be the subject of a trust.
 Currently, not all objects created on the basis of blockchain technology are subject to regulation, such as non-fungible tokens or central bank digital currencies, as the possibility of their circulation is still being investigated by the Hong Kong Monetary Authority.
 The article also examines the new nuances of licensing service providers related to the circulation of virtual assets, which require dual licensing under two regimes regulated by separate legal acts.
 The author concludes that Hong Kong has managed to regulate the circulation of virtual assets in one way or another, but has not managed to create a clear system for all market participants, so it is possible to introduce some solutions into Ukrainian legislation, but in general, this legal regulation system has many disadvantages and sometimes creates legal uncertainty.