Blockchain Papers

Laura Maes

No abstract is available for this record.

Victor Sukhonos

In the course of its economic and legal development, the formation and improvement of the financial system from a legal perspective continues to occur in Ukraine. Today, political transformations in one aspect or another affect the state of the financial system, that is, in some cases, they stabilize it, and in others, unfortunately, lead to its imbalance. At the same time, it should be noted that the financial system of Ukraine, as well as its functions in modern conditions, usually develop in close interaction with other links. Their interaction with the budget system is especially important for the functioning of the financial system itself since it contributes to the financial support of various branches of public life in Ukraine. At the same time, the axiology of the financial system of Ukraine requires analysis of its functional component, since in the legal and economic literature the specified category is still debatable. In addition, the concept of “financial system” is absent both in scientific sources and in the current legislation. The problems of the financial system have already been the subject of research by individual scholars. However, an analysis of their work shows that the administrative and legal aspects of the financial system are only partially revealed. That is why the purpose of this article is to analyze the very concept of the financial system and its components, as well as to study the impact on it of the relevant administrative and legal principles. As a result, it is concluded that finance, as well as the financial system as a whole, is crucial for the development of the state. They serve as the economic basis for the existence of even the state itself. The notion of “finance” is applied not only to the sphere of state property but also to the sphere of the effect of private relations, because in Ukraine the market relations develop. In this regard, finance is regarded as a public-law and private-law category, which is the very foundation of Ukraine’s financial system. Nowadays in Ukraine, there is a tendency of scientific research of peculiarities of legal regulation of a certain type of activity, including financial, because the latter has state-defined elements. Given that the main elements of the financial system include finance: state, local, economic entities of all forms of ownership, the non-productive sphere of activity, the population of the financial market, as well as financial infrastructure, it is possible to improve the definition of the content of the financial system as a set regulated by financial and legal norms individual units of financial relations and financial institutions through which the state creates, distributes and uses centralized and decentralized funds. This definition directly indicates that there is a specific model of legal influence created by a special combination of legal regulation of financial relations in Ukraine. The aforementioned allows convincingly to assert that in Ukraine there is an administrative-legal regime of the financial system, which is functionally oriented to the performance of functions and actions of the authorized state bodies in the implementation and provision of all elements of the financial system. Keywords: administrative and legal principles of the financial system, financial system, finances, money.

М.Д. Шапсугова

The transition to market relations increases the relevance of the study of decentralized finance. As P. A. Levchaev rightly remarked, due to the historical specifics, the peculiarity of Russia's financial science was a detailed study of the state finances of the planned economy of socialism. In contrast, the functioning of the finances of business entities often remained insufficiently studied. So, the subject of financial law is a state and municipal finance. Private decentralized finance is not studied by legal financial science, which gives rise to a fragmentary regulation of these relations by civil law.

A. A. Volos

No abstract is available for this record.

Rivneazot JSC, Vasyl Varavka

Recently smart contracts become more and more popular in such areas as initial coins offering (ICO), financial sector, international trade and public services. At the same time there is almost no legal regulation of smart contracts. There are unsuccessfull tries to regulate smart contracts bu security legislation. There are continuing discussions over whether a smart contract can be considered a civil contract and whether violated rights of the parties of smart contract could be protected in trail. The purpose of this article is to assess the practice of legal regulation of smart contracts worldwide and in Ukraine and to develop proposals for improvement of legal regulation of smart contracts. An analysis of law regulation of smart contracts in different countries of the world shows the initial state of the law in this area, significant differences between national systems of law and almost complete absence of judicial precedents. Most countries are trying to regulate smart contracts by securities and financial instruments legislation, which neither takes into account the economic nor legal nature of the smart contract. The greatest progress in legal regulation has reached Belarus, which has recognized the smart contract as a type of civil contract and cryptocurrency as the official means of payment. In Ukraine, despite the active implementation of blockchain technology in state registers, there is no legal regulation of smart contracts and cryptocurrency. The Government Concept of the development of digital economy and society for 2018 – 2020 and conclusions of financial regulators on the legal status of cryptocurrencies determine the need to develop legal regulation of the digital economy. In my oppinion, Ukraine should recognize the most widespread cryptocurrencies as official means of payment and issue its own state cryptocurrency. The legal regulation of tokens used in initial coins offering should be similar to the legal regulation of of debt securities. It is necessary to amend the civil legislation in order to recognize a smart contract as a type of civil contract expressed in the form of programming code and automatically executed in a distributed network. To minimize risks of smart contracts it is necessary to state requirements of mandatory identification of parties and to implement mandatory electronic application containing the essential terms of the contract which will have legal force in case of a programming code error and to resolve litigation between the parties.

Gyung Young Jung

블록체인기술을 기반으로 조건 성취에 따른 계약의 자동실행이 보장된 컴퓨터 프로그램(자동실행코드)으로 정의되는 스마트계약은 그 명칭에도 불구하고 계약 자체는 아니고 계약으로 발전하는 개념으로 이해된다. 스마트계약의 법적 성질은 상대방의 행위로 표시되는 승낙의 의사표시와 합치되면 계약이 성립하므로 이는 일종의 청약의 의사표시라 할 수 있다. 가상세계를 통해 법적 규율로부터 절연된 계약의 이행을 목적으로 탄생된 스마트계약이지만, 그 이익(가치)의 귀속주체가 현실세계의 존재여서 현실세계의 규율로부터 완전히 자유로 울 수는 없고, 인식, 의사결정, 결과가치의 평가, 제3자에 대한 책임 등에서 계약법적 접점을 가지게 된다. 분산형 자율조직(decentralized autonomous organizations: DAOs)이란 스마트계약 프로그램을 허용하는 플랫포옴인 이더리움 등을 활용하여 모집된 투자자의 조직을 의미하고, ‘the DAO’는 최초의 분산형 자율조직으로 탄생하였지만 코드상의 문제로 실패로 귀결되었다. 하지만 ‘the DAO’는 분산형 자율조직에 여러 가지 법적 문제점을 제기했는데, 그 중심은 투자자의 유한책임과 자율적 지배구조가 가능한 분산형 자율조직에 적절한 회사법적 구조는 무엇인가 하는 문제였다. ‘the DAO’는 설계자의 의도와는 달리 현행법 해석으로는 민법상 조합 또는 상법상 익명조합의 성질을 가지게 되어 유한책임, 자율적 지배구조 등의 실현이 어렵다고 본다. 하지만 많은 장점을 가진 분산형 자율조직이 유한책임의 자율적 지배구조를 가지고 양도가 자유로운 토큰을 발행할 수 있기 위해서는 주식회사법제에 포섭될 필요가 있다고 본다. 다만 이를 위해 분산형 자율조직에 주식회사의 설립등기를 요구하거나 불록체인의 익(가)명성의 그늘에서 사실상의 유한책임의 혜택을 보게 하는 것은 완전한 해결책이 아니어서, 분산형 자율조직을 포섭할 수 있는 회사법제의 개정에 관해 연구할 시점이라고 본다.

Elena Kirillova, Богдан Варвара Владимировна, Igor B. Lagutin, Evgeniy Dmitrievich Gorevoy

This article using critical analysis discusses the legal status of smart contracts, their features and characteristics, and the possibility of introducing this category into the legal field. The main goal of the study is to determine the legal status of smart contracts. The study concludes that a smart contract is a program code based on blockchain technology, which, by legal characteristics, is a legally significant message recorded in a language (artificial language) and sealed with an electronic digital signature of each of the parties (or certified with a special key). It is proved that the multilateral interactions implemented through smart contracts can reduce the costs of operations and control them, increase the speed of operations and reduce the risks associated with dishonest actions of the parties, minimize or completely exclude intermediaries from the transaction; therefore, legislation should provide for the possibility of using smart contracts along with existing contracts.

Anne Veerpalu

The article focuses on whether it is possible to use new technologies such as distributed ledger technology (DLT) in shareholder ledger maintenance systems. The article uses Estonia as an example to describe the shortcomings of shareholder ledger maintenance regulation and possible suggestions for reform and applies the principle of technology-neutrality to the subject matter to assess whether the regulation allows the adoption of new technologies, such as DLT, in ledger maintenance. The aim of the principle of technology-neutrality is to secure that the regulator does not create regulation that prefers any particular technology and discriminates against other technologies. Any regulation that is built around a pre-existing technology could suffer from preferring the use of that particular technology and consequently hinder innovation. In the article it is examined whether the ledger maintenance models used in Estonia are benefitting or suffering from the non-existence of technology-neutral technical standards for ledger maintenance and whether the differentiation of treatment of shareholder ledger administrators is justified on the basis of the principle of technology-neutrality.

D. V. Chub

The paper is devoted to the legal regulation of smart contracts in French law. The question of the admissibility of the use of smart contracts in economic relations is considered. Particular attention is given to the French legal doctrine in the issue of formulating the definition of “smart contract” and identifying its characteristic features, the various points of view of French legal scholars are compared. Examples of the most effective use of a smart contract in economic relations are given. The problems of applying contractual legal obligations and obligations of French law to smart contracts are considered. The importance of the oracle for the implementation of the smart contract and the features of its legal status under French law are disclosed.

de Graaf

Verhaalsbeslag op bitcoins Verhaalsbeslag op bitcoins is mogelijk door (1) de drager waarop de privésleutel staat waarmee over bitcoins kan worden beschikt (de paper of hardware wallet ) als waardepapier te kwalificeren, (2) op die wallet conservatoir verhaalsbeslag te leggen en als de toegang tot die wallet beveiligd is met een code, de schuldenaar te dwingen die code prijs te geven, (3) de bitcoins naar een andere, door een bank of DNB nieuw geopende bitcoinrekening over te maken, en (4) de paper of hardware wallet van die nieuwe bitcoinrekening te zijner tijd executoriaal te verkopen.

Taras Bachynskyy, Roman Radeiko

Abstract This study develops a review of Blockchain legal regulations in Ukraine. The authors analyze use of Blockchain technology in administration and provision of public services in modern Ukraine. It is stressed that the illegal status of Blockchain and cryptocurrency in Ukraine is a barrier to the full use of these instruments in all spheres of modern life in Ukraine. The caselaw in the field of cryptocurrency use is analyzed.

Nafie Asfour

Technology is entering every part of our daily life leading to integration with all aspects of modern society. Social sciences research is not an exception of this role. The fourth revolution is intertwined in the process we do research. In this thesis, two models are designed based on blockchain and smart contract technology to solve the current problems in the existing traditional models. Those traditional models proved to have certain problems including being inflexible and having so many parties involved the network. The new model provided by this thesis is built upon blockchain and smart contract technology. Therefore, those networks have the benefits of being more flexible and having less parties involved in the network. the first case is a crowdfunding network, we have examined a traditional crowdfunding and developed a similar one based on blockchain and smart contracts technology to overcome the drawbacks of the existing network. the second case is a marriage contract network where we built a network similar to the traditional one but has the ability to remove the burden of wasting time and effort. Finally, both cases are compared based on the change in structure and functions of each party in the network. We have seen some changes in terms of structure between the two networks, however, the main change came in the functions of each party and the removal on unnecessary ones in the network which is expected to reduce the transaction cost.

Leskiv Solomiia

No abstract is available for this record.

Allison M. Lovell

No abstract is available for this record.

Vasyl Varavka

Development of information technologies, cryptocurrencies and technology of distributed networks has caused the appearance of smart con- tracts as new types of civil contract. They have been widely used in recent years in such areas as initial coins offering (ICO), financial sector, inter- national trade and public services. At the same time the legal status and legal regulation of smart contracts are uncertain. These uncertainties cause many legal risks of smart-contractsutilization. The purpose of this article is to find out the conception of smart contract as a form of civil contract, to research its legal status and legal regula- tion issues and to develop proposals for the improvement of legal regulation of smart contracts and cryptocurrencies in Ukraine. By its legal nature a smart contract is a digital form of a civil contract realized in programming code automatically executed in a distributed network. Like a civil contract, smart contract has such elements as parties, subject and essential terms of the contract. The legal force of a smart contract depends on whether it includes the fundamental features of a civil contact, such as evidence that parties have intention to create legal relations, understandabil- ity of contract conditions and possibility to perform the terms of the contract under duress. The main advantages of a smart contract are its ability to significantly accelerate and reduce costs of the transaction and guarantee the fulfillment of contract terms regardless of the contractual parties' and third parties' will. The main risks of a smart contract are uncertainty of legal status of a smart contract and cryptocurrencies as a means of payment, complexity of expressing the contact terms in a mathematical algorithm, risk of software bugs and hacking attack. To solve the problems of legal regulation of smart contracts in Ukraine it is necessary to change the legislation in order to settle the legal status of cryptocurrencies and recognize a smart contract as a form of a civil contract. It is necessary to identify parties of the smart contract, confirm their agreement on the terms of the smart contract by using digital electronic signature. A smart contract should be supplemented by text application containing the es- sential terms of the contract which will have legal force in trail. It is necessary to implement blockchain technology in the state registers and pro- vide legal ability to make adjustments in the registers automatically for the performance of smartcontracts.

Anne Lafarre, Christoph Van der Elst

Blockchain applications have largely been short-lived phenomena in the (classical) corporate governance arena over the past few years. However, at the same time, blockchain has also found its place in addressing agency problems in modern organizations, such as Decentralized Autonomous Organizations (DAOs), offering valuable opportunities to eliminate classical inefficiencies. After a brief introduction to the agency problem and its associated costs in corporations, this chapter explores blockchain technology as a potential solution to this issue. Furthermore, the chapter delves into these DAOs, which, at least in theory, eliminate the agent and its accompanying problem while incorporating artificial intelligence. In the governance of more traditional corporations, blockchain should also be considered a useful tool for overcoming several agency problems and inefficiencies. However, regulatory burdens, uncertainties, as well as concerns related to accountability and other associated costs and interests, slow down the adoption of blockchain in the corporate law and governance environment.

Scott A. McKinney, Rachel Landy, Rachel Wilka

No abstract is available for this record.

William J. Magnuson

The recent decade has witnessed an extraordinary degree of innovation in the financial sector. Developments in financial technology, computing power, and networking theory have allowed decentralized online platforms such as Bitcoin to fundamentally change the way that financial services are provided. While these innovations have been applauded by many as bringing a welcome degree of competition to a sector long dominated by powerful incumbents, they also create a set of challenges for current financial regulation. How do fiduciary standards apply to algorithms? How does online finance affect the behavior of investors? And more generally, how can regulators monitor and constrain the financial industry when it is increasingly run by autonomous, dispersed computer networks? This Article argues that current financial regulation is inadequate to address the unique problems presented by the rise of Bitcoin and other fintech industries. In particular, these innovations raise concerns about the ability of financial regulation to promote three inter-related financial goals: the efficient allocation of capital, the protection of consumers, and the prevention of systemic risk. These goals, at the core of current approaches to financial regulation, are all challenged by fintech’s defining feature: its reliance on disembodied institutions and complex algorithms for its functioning. These traits render the traditional tools used by regulators to discipline markets—substantive behavioral obligations, the threat of sanctions, and the constraining effect of reputation—largely ineffective. The Article concludes by proposing a set of principles to guide lawmakers in designing a more effective financial regulatory structure for the Bitcoin era.

B. Kolos, N. Lobaz

The article outlines the logical legal and regulatory sequence of building a highly civilized, highly developed and democratic Ukrainian state that will maximally facilitate the implementation of natural inviolable freedoms, rights, security and supreme power of a Ukrainian citizen and his social duties, rights and responsibilities in the family, community , nation and state. After all, Ukraine is shocked by populist speeches of immoral and illiterate government officials of different levels, their pseudoreforms, pseudo-decentralization and other chaotic actions lead the state to collapse, and people are lowering them to even greater poverty. The people are completely deprived of their property and state control. Prosecutors, judges, police, the SBU and other governing bodies of the state are not controlled by the people. The state's control went into the hands of criminal-oligarchic clans, which loose it uncontrollably and cynically. It should be noted that the management of a civilized state is the most complicated process in the world, which is tens of thousands of times more complex than the most complex computer and space technologies. Therefore, the management of the state categorically can not allow people with immoral reputation and without deep theoretical knowledge and practical skills in management science, micro-and macroeconomics, finance and freedoms and human rights. To build a Ukrainian state that will serve exclusively a man of honest work, he will constantly increase the welfare of his life and the power of the state and make it impossible for anyone to parasitize, and in any way, for another's account, one should link in one harmonious and dynamic whole such state-building mechanisms: socially-economic justice; the selection and appointment by the people of government personnel at all levels and control over their work; development of industrial production, entrepreneurship, agro-industrial complex and farming; wholesale and retail trade; communications and engineering; efficient use of all natural resources, recycled materials and private and public property; social infrastructure of settlements; foreign economic activity and investments; development of science and innovation; prophylactic, diagnostic and medical care of the population; the protection of freedoms, rights, security, the supreme power of man and the clear and unconditional compliance of all citizens and officials with the laws in force; internal and external security of citizens, communities of settlements and the state; operational and statistical control over the implementation of strategic and current programs for the development of settlements and the state, their diagnosis and improvement of management, systematic and comprehensive explanatory and educational work in Ukraine and abroad, as well as the formation of a highly civilized worldview of Ukrainians and their unification into a single monolithic highly professional and active National Community and state-building force.

Valeriia Dyntu, Валерія Аркадіївна Динту, Valeriia Dyntu

Dyntu V. A. The roots of cryptocurrencies / V. A. Dyntu // Правові та інституційні механізми забезпечення розвитку України в умовах європейської інтеграції : матеріали Міжнародної науково-практичної конференції (м. Одеса, 18 травня 2018 р.) У 2-х т. Т. 2 / відп. ред. Г.О. Ульянова. – Одеса : Видавничий дім «Гельветика», 2018. – С. 388-392.

David C. Donald

No abstract is available for this record.

Anton Starchenko

The article considers the legal framework for the use of smart contracts in Ukraine to assess the prospects for their use in contract law in the context of the digital transformation of the economy. A study of scientific views on the legal nature of a smart contract is presented. The features of blockchain technology, which predetermine the features of smart contracts and the specifics of their application, are considered. The definition of the place of a smart contract in the system of contracts is proposed. The analysis of Ukrainian and foreign legislation in the field of application of digital technologies and smart contracts in the economy was carried out. It has been determined that smart contracts are currently not regulated in the current legislation of Ukraine. Legislation regulating relations related to the use of information technology is just beginning to take shape. It is noted that the lack of internationally coordinated efforts to recognize the legitimacy of smart contracts can be a serious problem. It is concluded that a smart contract is an agreement that can be automated and enforced. This analysis will lead to a critical examination of whether the functionality of traditional contracts has been superseded by the emergence of smart contracts. It is noted that a smart contract is a combination of technological and legal aspects. As a result of the study, problems were identified, the solution of which at the legislative level will allow the introduction of smart contracts in various areas of economic activity. An important characteristic of these contracts is emphasized - automaticity and the possibility of enforcement. The imperfection of legal instruments for regulating the conclusion and execution of smart contracts is noted. It is concluded that a smart contract, taking into account its features, is a contractual structure and that the successful development of smart contracts requires legislative consolidation of the legal status of smart contracts, the parties to smart contracts, the procedure for organizing the protection of the interests of each side of the smart contract.

Oleksii Drozd, Oleg Basai, Hanna Churpita

The aim of the article is to study the theoretical and legal possibilities of using cryptocurrency in purchase and sale contracts, to determine the specificities of such a phenomenon as cryptocurrency (Bitcoin) from the perspective of jurisprudence, and to draw attention of legal scholars primarily to possible further scientific researches on the introduction of this phenomenon in the modern civilian legislation of Ukraine. The subject of the study is the specificities of using cryptocurrency in contracts of purchase and sale. Methodology. The research is based on an analysis of legal acts on the legal regulation of cryptocurrency in Ukraine. By means of the comparative legal method of investigation of certain provisions of Ukrainian legislation, the possibilities and limits of the use of cryptocurrency in contractual relations, in particular, contracts of purchase and sale are determined. The results of the study revealed that the cryptocurrency regime in Ukraine and in many countries is in a legal vacuum. Such a conclusion is based on the lack of clear legal clarification and consolidation of the concept and types of cryptocurrency in the relevant rules of the tax, banking, civil, and commercial law. In case of eliminating this gap, it is advisable to review the state policy on Bitcoin and its analogues. Practical implications. It is necessary and appropriate to introduce a corresponding license for cryptocurrency activities that can minimize the laundering of proceeds from crime or terrorism financing. It is suggested that eventually the relations concerning the digital currency will be regulated in Ukraine, but most likely, it will copy the experience of another state, which may have negative consequences. Relevance/originality. Analysis of a possible use of cryptocurrency in contracts of purchase and sale can become the basis for the development of the most promising directions of domestic civil law in contractual relations.

O.O. Baranov

The analysis of using so-called smart contracts, which have become widespread in recent years. The definition of the term “smart contract” is given, some classification is offered for them. A comparative analysis of traditional and smart contracts in the part of legal regulation of their application was conducted. The article formulates legal problems of the theoretical and practical direction, which are a significant barrier to the use of smart contracts in the context of widespread use of Internet of Things, some solutions have been suggested for them.