The article discusses such new financial instrument as cryptocurrency. The authors present the characteristic features of cryptocurrency, advantages and risks of its use. The analysis is aimed at studying cryptocurrency as a legal phenomenon. The article attempts to determine the legal nature of cryptocurrency in accordance with modern foreign and Russian regulations. The authors consider the question of whether cryptocurrency can be the subject of crimes. The result of the analysis is the conclusion about the multidimensionality of the phenomenon and the need for detailed legislative regulation.
Smart contracts are computer protocols that self-enforce encoded terms. They arguably allow for individual freedom and increased sovereignty from inconveniences. The enthusiasm goes as far as foreseeing that smart contracts will make contractual legal oversight obsolete. However, whereas contract law theory evolved to acknowledge the importance of flexibility and relationality, smart contracts activists defend the opposite direction, arguing for contractual rigidness and denial of social norms supporting complex transactions. This paper departs from this paradox to argue that (i) smart contracts based on existing technology are unlikely to thrive in complex contractual settings, and (ii) contextual analysis is important for LawTech’s propositions. Smart contracts, blockchain, system’s theory, social norms, transaction cost, flexibility, relationality, trust, co-operation, contractual governance
Introduction: the digitalization of public relations and the emergence of smart contracts have created the need to study what a smart contract is and whether it is subject to the general principles of the law of obligations. Methods: the methodological framework for the research is a set of methods of scientific knowledge, among which the main ones are the methods of historicism, consistency, and analysis. Results: the possibility of extending the principles of the law of obligations to the relations of the parties when they conclude a smart contract is analyzed. Conclusions: the conclusion is made about the extension of the principles of the law of obligations to smart contracts with the features due to the nature of smart contracts.
<ns2:p>The modern period of development of society and the state is characterized by digitalization of all spheres of social life. One of the tools used in the process of digitization of law is a smart contract, which is considered as a program code intended for functioning in an information system and used as a form of fixing a set of obligations between the parties, as well as a method for automated fulfillment of these obligations. The purpose of the study is a comparative law analysis of the practice of legislating the concept of «smart contract» in legal acts of different states and the justification for considering the use of smart contract as a legal technology. The methods: the author uses general scientific methods (system, historical, formal-logical), specific scientific methods (mathematical, linguistic) and special-legal methods (comparative law, legal forecasting, interpretation of law). The results: the study concludes that the use of a smart contract could be considered as a special type of law enforcement technology representing an activity aimed at implementing the subjective rights and legal obligations of legal entities, carried out using self-executing program code that exists in the digital environment, which allows, first, to record and transmit certain legal information (in this case, a smart contract is considered as a type of written contract form), as well as to automate the fulfillment of obligations when certain conditions are met (in this case, a smart contract is understood as an automated technical method for fulfilling obligations).</ns2:p>
Evidence management is crucial in the field of forensic science. Evidences obtained from a crime scene are important in solving the case and delivering justice to the parties involved. Hence, protecting these evidences from any form of alteration is of utmost important. Chain of Custody is the process which maintains the integrity of evidence. Inability to maintain the chain of custody will make the evidence inadmissible in court, eventually leading to the case dismissal. Digitalization of forensic evidence management system is a need of time as it is an environment friendly model. Blockchains are digitally distributed ledgers of transactions signed cryptographically in chronological order that are sorted into blocks and is completely open to anyone in the blockchain network. Hyperledger Fabric is a consortium blockchain framework created by the Linux foundation and is mainly used for enterprise use. Based on the concept of Hyperledger Fabric, present study aimed to create a framework and further propose an algorithm to implement Blockchain Technology to digitalize forensic evidence management system and maintain Chain of Custody.
Blockchain and distributed ledger technologies are widely regarded as regulatory technologies. Their core regulatory devices are so-called smart contracts, that is, self-executing agreements that are usually written in code on the blockchain. The relationship between smart contracts and contract law, however, is much more subtle. It is currently the subject of intensive academic debate. Legal jurisdictions, therefore, need to define rules that solve these conflicts of laws and codes, either by rules of recognition or by rules subjecting the substance of blockchain-based rules to legal scrutiny. Individual economic freedom is exercised by market transactions, and contracts are a key instrument enabling such transactions to be carried out. Contracts thus provide a tool for individuals to exercise their individual freedom, in order to shape their legal relationships according to their own will. The formation of contracts via smart contracts is also associated with a second pillar of freedom of contracts, namely the freedom to choose a particular contractual partner.
La irrupción de los smart contracts o contratos inteligentes basados en la cadena de bloques plantea importantes desafíos para el Derecho contractual y el Derecho internacional privado. Estos contratos tienen, además, la capacidad de operar, en gran medida, al margen del ordenamiento jurídico y, con ello, de poner en jaque al tradicional monopolio legislativo del Estado. Algunos ya vaticinan que los algoritmos terminarán por desplazar a la Ley y a jueces y tribunales, una vez se consolide lo que se denomina la Lex Cryptographia. Ante esta situación, el presente trabajo aborda tres cuestiones principales: Primero, analiza la ley aplicable a los smart contracts bajo el régimen del Reglamento Roma I. Segundo, estudia el fenómeno de la Lex Cryptographia y su interacción con el ordenamiento jurídico estatal. Finalmente, examina el papel del Derecho internacional privado para garantizar la seguridad jurídica en la contratación inteligente, así como el adecuado equilibrio entre regulación e innovación tecnológica.
Статья посвящена зарубежному опыту законодательного регулирования внедрения цифровых технологий, которые самым непосредственным образом связаны с текущими процессами развития экономики и общества. Авторы рассматривают опыт регулирования цифровых активов на примере законодательства Республики Мальта и Княжества Лихтенштейн. Правительство Мальты в 2018 году заявило, что готово к цифровой трансформации своей экономики, тем самым претендуя на роль первой страны в мире, создавшей целостную законодательную базу для применения технологии блокчейн и токенизации активов. Одним из последних законодательных актов в этой области является Закон Княжества Лихтенштейн, посвященный технологии распределенных реестров, который представляет собой технологически нейтральную и всеобъемлющую систему, призванную охватить все аспекты токенизации. Исследуется возможность отнесения криптовалюты к объекту правового регулирования, что позволяет упорядочить и систематизировать правила, которые будут применяться в отношении оборота цифровых активов. The article is devoted to the foreign experience of legislative regulation of the introduction of digital technologies, which are most directly related to the current processes of economic and social development. The authors consider the experience of regulating digital assets on the example of the legislation of the Republic of Malta and the Principality of Liechtenstein. In 2018, the Government of Malta announced that it is ready for the digital transformation of its economy, thereby claiming the role of the first country in the world to create an integral legislative framework for the use of blockchain technology and asset tokenization. One of the most recent pieces of legislation in this area is the Principality of Liechtenstein Act on distributed ledger technology, which is a technologically neutral and comprehensive system designed to cover all aspects of tokenization. The possibility of classifying cryptocurrency as an object of legal regulation is being investigated, which makes it possible to streamline and systematize the rules that will be applied in relation to the circulation of digital assets.
Babak Mafakheri, Andreas Heider-Aviet, Roberto Riggio, Leonardo Goratti
The rollout of fifth generation (5G) cellular network technology has generated a new surge of interest in the potential of blockchain to automate various use cases involving cellular networks. 5G is indeed expected to offer new market opportunities for small and large enterprises alike. In this article, we introduce a new roaming network architecture for 5G based on a permissioned blockchain platform with smart contracts. The proposed solution improves the visibility for mobile network operators of their subscribers' activities in the visited network, as well as enabling quick payment reconciliation and reducing fraudulent transactions. The article further reports on the methodology and architecture of the proposed blockchain-based roaming solution using the Hyperledger platform.
This paper aims to show that computer software known as ‘smart contract' can help achieve various goals. First, the software can be used as a means of executing a traditional contract. Second, smart contracts may help enforce the law. Third, the software can act as a means of concluding and executing a contract. In this case, a smart contract can replace a written one. Consequently, the entire contractual practice moves into cyberspace, and we observe total ‘dematerialisation' of contractual relations. Fourth, a smart contract can be used to enforce a court decision. Since the paper focuses on the contractual aspect of this technological innovation, the authors believe that a smart contract should be understood as a computer program serving as an external form for any type of contract. Such a contract can only be blockchain-based, because the blockchain technology ensures commencement, automatic execution, and termination of civil obligations in cyberspace. Based on the authors’ concept of a smart contract, this paper offers recommendations to eliminate legal and operational risks that arise when users of digital financial services conclude and execute smart contracts. The paper suggests ways to improve customer supervision of activities performed by operators and administrators of operating platforms.
The article examines the concepts, legal nature of smart contracts, as well as the advantages and disadvantages of smart contracts as a basis for ownership. The technical and legal aspect of the concept of smart contract is considered. Models of using smart contracts are described. Approaches to determining the legal nature of smart contracts are presented. It is concluded that two models must be considered when using smart contracts. The first model is external, when the program code does not replace the agreement, but only automates its execution. The second model is internal, when the code completely or partially replaces the terms of the agreement. Among the advantages of smart contracts as grounds for the emergence of property rights can be identified, first of all, the inability to change the terms of the contract and interference in its work. However, at the same time, this feature is a disadvantage of the smart contract, as it does not allow to take into account the objective circumstances that may affect the implementation of the agreement. The problem of oracles when using smart contracts is also considered. It is noted that the use of oracles actually means the involvement of a third party in the transaction with all the risks that arise from it. The problem of involving notaries and state registrars in transactions on acquisition of property rights on the basis of a smart contract is analyzed. The problems of lack of legal regulation of smart contracts, in particular, related to its transnational nature, is investigated. The problem of protection of the rights of the parties to the smart contract is analyzed, in particular, related to technical errors and outside interference. Temporary solutions regarding the use of smart contracts and general recommendations on the legislative definition of smart contracts are proposed.
A legal foundation to smart contracts is essential if smart contracts are to become mainstream. Investors will need to be able to be able to invoke legal remedies in appropriate circumstances so as to avoid foul play and ensure a dependable market. The smart contract also has the potential for built-in dispute resolution. The Delivery Panel&s;s findings were that confidence in smart contracts&s; legal position can be grown through legal developments and increasing standardisation. Smart contracts have been described as the "ultimate automation of trust". Trust is informed by a wide range of factors and derived from a variety of different sources. The moves towards standardisation in smart contracts emphasis the importance of how they are written, how they are enforced and how to ensure that the automated performance of a smart contract is faithful to the meaning of any relevant contractual documentation.
On the issue of cryptocurrency as other property in civil law This article analyzes the current civil legislation of the Russian Federation, the practice of its application in the regulation of property relations. The authors consider cryptocurrency as another property in civil circulation and the features of its legal regime. The attribution of cryptocurrency to other property is possible within the framework of the current legislation, without creating new objects of civil rights with conflicts and disputes regarding their legal regime.
The emergence of cryptocurrencies has become a major challenge for the regulation of civil and public law. Cryptocurrency is a new object of civil law, and its legal regime is just being formed. However, cryptocurrencies have already started appearing in court cases. The Ninth Arbitration Court of Appeal agreed with the financial manager's arguments and decided to include bitcoins in the bankruptcy estate. According to the arguments of the court of second instance, with the correct application of the principles of civil law, cryptocurrency cannot be interpreted differently than “other property”. Refusal to include it in the bankruptcy estate violates the rights of creditors. The decision of the first instance court serves as a vivid example of literalism in the interpretation of the laws prevailing in Russian justice. At the same time, the decision of the Court of Appeal shows that in certain situations related to economic disputes and the protection of creditors' rights, this literalism can be overcome within the judicial branch of government. Moreover, this can be achieved even in the absence in the written law of norms that are directly applicable to the case in question. The interpretation by the Court of Appeal of cryptocurrency as other property (from the point of view of the Civil Code) is consistent with the concept of federal law dated July 31, 2020 N 259-FZ «On digital financial assets, digital currency and on amendments to certain legislative acts of the Russian Federation».
The main carrier of the cryptocurrency system is blockchain. The paper will explain the differences between tokens and coins, the role of miners in the cryptocurrency system, forks, how a consensus mechanism is achieved. The protocols in use will also be discussed. Due to technical similarities, a blockchain was compared with Bitcoin, which provides an excellent reference point. The paper also presents the practical application of blockchain in the form of smart contracts. The paper will propose the stages of development of own cryptocurrency, from the very beginning, where the purpose of existence is defined, through the selection of technical solutions, until the finalization where marketing and commercial aspects play a crucial role for success, with guidelines for legal aspects.
Розглядається процес безпечного укладання договорів соціального страхування від нещасних випадків на виробництві та професійних захворювань, який полягає у надійному укладанні і веденні договорів за допомогою технології смарт-контрактів.
The article defines the theoretical and legal content of the category of "reasonable contracts", outlines the concepts and basic forms of implementation of contractual obligations without enforcement. Based on the modern global paradigm of legal development, smart contracts are defined as contracts that are technologically secured in such a way that allows the parties to guarantee bilateral performance of contractual obligations without recourse to enforcement means, including judicial protection of violated right. It is noted that such a definition requires inclusion in the current civil and economic legislation, taking into account the actual existence in public relations of such contracts in the form of vending machines and other technically possible practical forms and models, as well as taking into account the real possibility of reducing the hypothetical costs of the parties to the contract for judicial consideration of the case. It is determined that in the context of modern social processes, self-help is not a fundamentally new phenomenon, since people regularly act independently before referring to the official legal system. So, over the past few years, a group of innovators have begun to develop computer technologies that have led to the emergence of a fundamentally new area of legal regulation in contract law, such as so-called "reasonable contracts" or smart contracts. From a teleological point of view, their purpose is to allow the parties to such a contract to ensure that they have reached an agreement to increase the cost of any violation by an appropriate amount. Smart contracts are defined as agreements in which conditions are executed automatically, usually using computers. Such contracts are intended to ensure execution without going to court. Automation ensures productivity by eliminating the human factor from contract execution. One example of a smart contract is a vending machine. If the machine is working properly and money is inserted into the machine, this will automatically execute the purchase and sale agreement. It is noted that such a contract does not create any legal problems if the machine will issue soda or coffee, but legal issues arise if the machine can issue, for example, narcotic drugs. So, there is a problematic question of the legality and expediency of legislative prohibition of such automatic means due to the theoretical possibility of their use for illegal purposes, or, conversely, their legalization and normalization by the requirements of current civil legislation.