This chapter addresses the emerging challenges of consumer protection in the context of non-fungible tokens (NFTs). Although NFTs are generally excluded from financial regulation under instruments such as the Markets in Crypto-Assets Regulation (MiCAR), they are increasingly marketed and sold to consumers as speculative digital assets. Many of these transactions rely on techniques that obscure key information, such as price, scarcity, or value, or employ design strategies that steer user behaviour. The chapter examines how the Unfair Commercial Practices Directive (UCPD) can apply to such cases, with a focus on misleading actions and omissions, aggressive practices, and interface-driven manipulation. While NFTs are not expressly recognized as consumer products, they fall within the material scope of EU consumer law when offered in a business-to-consumer setting. The analysis reveals that the UCPD remains a relevant, albeit under-enforced, tool for addressing deceptive and exploitative practices in NFT markets. However, enforcement is hindered by the novelty of the technology and the opacity of many digital marketplaces. The chapter calls for more precise regulatory guidance, greater awareness among enforcement authorities, and renewed attention to the structural risks posed by token-based commerce.
This chapter investigates the complex contractual dynamics that underpin the transfer of non-fungible tokens (NFTs) within online marketplaces. Particularly, it offers a critical assessment of the impact that platform terms of service (ToS) have on shaping rights and obligations in NFT transactions. Case studies from prominent NFT online marketplaces illustrate that, while these marketplaces claim to act as third-party intermediaries, their ToS significantly dictate the enforceability of IP rights, the extent of user protections, and the procedural rules surrounding NFT transactions. The chapter then examines the relevance and application of the EU Digital Services Act (DSA) to NFT marketplaces, pressing NFT marketplaces to reassess and align their ToS towards the goals of transparency and fairness. Ultimately, the discussion aims to provide insights into the intersection of contract law, NFTs, and the EU DSA, offering an initial understanding of the enforcement challenges and opportunities presented by the EU’s platform governance approach in the evolving NFT marketplace ecosystem.
This Research paper attempts to examine and analyse the legal nature and law which govern virtual property, covering the concept of ownership, transfer, and regulatory challenges within the metaverse. This Research paper aims to set-out the struggles of traditional legal framework to adapt to the new digital environment consisting of technologies such as blockchain, artificial intelligence (AI), augmented and virtual reality (AR/VR), 3D modelling, and edge computing converge to form the metaverse. The study explains blockchain technology, as it reinforces non-fungible tokens (NFTs) which is the key standard for virtual ownership. It also attempts to analyse how existing legal framework in India for property laws, such as the Transfer of Property Act 1882[1] and the Sale of Goods Act 1930[2], could bring virtual assets under its legal parameters. A comparative analysis of the UK, US, EU, and Indian legal frameworks shows how different legal approaches helps in classification of digital assets. The UK Law Commission’s recommendation demonstrates a progressive shift toward recognising virtual property rights by introducing a new category of “digital objects”.[3] The Research paper highlights the inadequacy of existing property laws for resolving the exclusive cross-jurisdictional and ownership challenges posed by digital environments, concluding that just providing conceptual foundation is not enough. It advocates for a harmonised global governance framework integrating statutory law, soft law principles like the UNIDROIT Principles of International Commercial Contracts[4], and platform-specific regulation to ensure certainty, accountability, and protection of digital ownership.
Rad analizira digitalnu transformaciju u industriji osiguranja s posebnim naglaskom na primjenu blockchain tehnologije i pametnih ugovora. Istražuje kako telemetrija i oracle tehnologija omogućuju prikupljanje i korištenje podataka iz stvarnog svijeta za dinamično oblikovanje ugovora o osiguranju, što vodi razvoju novih modela poput mikroosiguranja, peer-to-peer osiguranja i osiguranja temeljenog na stvarnoj uporabi. Rad također razmatra pravne aspekte pametnih ugovora, njihovu pravnu valjanost, ograničenja u interpretaciji, te izazove u zaštiti privatnosti i regulatorne izazove koje donosi njihova primjena unutar EU i Republike Hrvatske. Poseban naglasak stavlja se na važnost stvaranja jasnih i prilagodljivih pravnih rješenja koja će omogućiti odgovornu i učinkovitu integraciju novih tehnologija u osigurateljnu praksu.
This study aims to provide a comprehensive analysis of tools and methods for ensuring smart contract security.The research employs a systematic review of static analysis, dynamic testing, and formal verification approaches.Static analysis tools, including Oyente, Mythril, and Slither, are systematically evaluated regarding their effectiveness in identifying vulnerabilities at early development stages, highlighting strengths in detecting known vulnerability patterns as well as limitations such as false positives.Dynamic analysis methodologies, such as fuzz testing (e.g., Echidna, Harvey) and symbolic execution (e.g., MAIAN, teEther), are assessed for their capability to identify complex logical vulnerabilities that are typically missed by static methods, examining their accuracy, scalability, and real-world applicability.Formal verification approaches employing K-framework, Why3, and Coq are thoroughly examined for their ability to deliver rigorous mathematical guarantees of smart contract correctness, along with their practical applicability, complexity, and integration into typical smart contract development workflows.The study reveals that an integrated security strategy, combining static analysis, dynamic testing, and formal verification methods, is essential for comprehensive and robust smart contract protection, effectively mitigating diverse vulnerabilities across the entire contract lifecycle.The research contributes to the field by offering a comparative analysis of current tools, identifying their strengths and limitations, and proposing future research directions, including automated specification generation and AI-driven vulnerability prediction.
The profound digital transformations currently shaping the world—particularly in the field of contracting—have given rise to a new type of legal relationship known as self-executing smart contracts. These contracts are characterized by their autonomous conclusion and execution through blockchain technology, without the need for continuous human intervention. This poses a significant challenge to traditional legal frameworks, foremost among them the conflict-of-law rules in private international law. These rules presume the existence of certain criteria that allow for the determination of the law applicable to the legal relationship in dispute, whether based on the place of contract formation, the place of performance, or the nature of the contested relationship. However, the decentralized technical nature of self-executing contracts undermines these assumptions and weakens the ability of the adjudicator to apply traditional legal tools in understanding the relationship and attributing it to the appropriate legal system.
This research aims to examine the regulatory compliance aspects of smart contracts within the Indonesian legal system using a Systematic Literature Review (SLR) approach. The review focuses on how smart contracts are recognized and regulated within Indonesia’s legal framework, the challenges related to consumer protection, their compatibility with traditional contract principles, and comparisons with international regulatory standards. From a total of 158 relevant studies, 50 articles were selected based on multi-layered search strategies, citation chaining, and relevance scoring. The findings reveal that while Indonesia has established a normative legal basis for recognizing electronic contracts, significant gaps persist in enforcement, legal clarity, and consumer protection. The implications of this review highlight the need for regulatory reform, the standardization of legal frameworks, and the integration of interdisciplinary approaches to secure the application of smart contracts within Indonesia’s growing digital economy.
Widespread reuse of open-source code in smart contract development boosts programming efficiency but significantly amplifies bug propagation across contracts, while dedicated methods for detecting similar smart contract functions remain very limited. Conventional abstract-syntax-tree (AST) based methods for smart contract similarity detection face challenges in handling intricate tree structures, which impedes detailed semantic comparison of code. Recent deep-learning based approaches tend to overlook code syntax and detection interpretability, resulting in suboptimal performance. To fill this research gap, we introduce SmartDetector, a novel approach for computing similarity between smart contract functions, explainable at the fine-grained statement level. Technically, SmartDetector decomposes the AST of a smart contract function into a series of smaller statement trees, each reflecting a structural element of the source code. Then, SmartDetector uses a classifier to compute the similarity score of two functions by comparing each pair of their statement trees. To address the infinite hyperparameter space of the classifier, we mathematically derive a cosine-wise diffusion process to efficiently search optimal hyperparameters. Extensive experiments conducted on three large real-world datasets demonstrate that SmartDetector outperforms current state-of-the-art methods by an average improvement of 14.01% in F1-score, achieving an overall average F1-score of 95.88%.
From oral agreement to paper to digital format, the contract, which encapsulates and defines the relationships between those who compose it, has undergone multiple revolutions. These days, it's the smart contracts that are interfering between technology and law. A new generation of contracts known as intelligent contracts (smart contracts) has emerged as a result of the remarkable advancements in artificial intelligence coupled with the development of blockchain technology and crypto money. Furthermore, this intelligent contractual model is no longer limited to the creation of traditional agreements alone. Because it can be created and executed automatically, often without external intervention, it tends to expand to other types of legal acts and a wide range of electronic transactions.
The swift advancement of blockchain technology has introduced a transformative innovation known as smart contracts, which are self-enforcing, unchangeable computer programs for agreements. While these contracts offer benefits like efficiency and openness, their inherent qualities present major hurdles for protecting consumers, especially from the risk of inequitable terms being included. This study aims to deeply investigate the strengths and weaknesses of current Indonesian law in offering legal safeguards to consumers who use smart contracts for their transactions. Utilizing a normative juridical methodology with a statutory and conceptual framework, the research reveals several key findings. First, the essential features of smart contracts, most notably their unchangeable and self-enforcing nature, are in direct opposition to the adaptable and justice-focused principles of Indonesian contract law, like the doctrine of good faith. Second, although a foundational level of protection is offered by the Indonesian Civil Code (KUHPerdata), the Consumer Protection Law (UUPK), and the Law on Information and Electronic Transactions (UU ITE), substantial legal vacuums and difficult enforcement problems persist. Third, the research pinpoints specific ways unfair clauses appear as functions within the code and confirms that applying a purposeful interpretation of current legislation can help lessen their negative effects. In conclusion, this paper asserts the pressing requirement for creating specific legal rules and bolstering institutional supervision, especially by the Financial Services Authority (OJK), to ensure that consumer rights remain protected amidst the evolution of contractual technology.
This article proposes a hybrid framework that integrates technological and legal solutions to automate compliance and dispute resolution in international personal data transfers. The approach leverages smart contracts built on blockchain technology, incorporating standardized contractual clauses (SCC/MCC) and non-fungible tokens (NFTs) to trigger complaint procedures. By involving supervisory authorities as escrow agents, the system ensures transparency, efficiency, and regulatory compliance, thereby overcoming the limitations of traditional methods. Through comparative analysis and a case study, the article demonstrates the viability of a scalable and interoperable solution that enhances data subjects’ rights while aligning with the GDPR and other international regulatory frameworks.
This paper presents an analysis of the legal regulation of smart contracts in Switzerland and the United King-dom — two leading countries in the field of digital technologies. The study examines the key approaches to the formation and execution of smart contracts, their place within the law and legislation, as well as their in-fluence on the development of IT technologies. The central issue in regulating smart contract-related relations lies in the ambiguity of their legal nature and the lack of regulatory provisions in legislation, particularly in the Civil Code of the Republic of Kazakhstan. Special attention is given to legislative initiatives in both coun-tries. The research shows that Switzerland has successfully integrated blockchain technologies into its legal system through the adoption of specialized legal frameworks. In contrast, the United Kingdom emphasizes the adaptation of common law to the challenges of the emerging digital economy. The article compares the two countries’ approaches in the definition and application of smart contracts, their legal status, taxation is-sues and data protection. In Switzerland, this is the Law on Distributed Registries (DLT Act), and in the UK, the recommendations of the Law Commission of England and Wales. The paper also focuses on security is-sues (cyber threats and data protection), potential risks and the cross-border use of smart contracts. A com-parative analysis of both jurisdictions’ approaches is presented, along with their potential for further devel-opment, including participation in global standardization initiatives. In conclusion, the authors underscore the necessity of establishing international legal standards for the effective and secure use of smart contracts.
This article evaluates the regulatory legal landscape of smart contracts within the EU and examines a few essential legal challenges related to the need to harmonize smart contract regulations across the EU. It starts with analysis of some legal and technical aspects of the smart contract term form and arrives at the conclusion that there is no universal and unified term that contains technical aspects of the smart contract. This creates legal uncertainty, as the currently existing legal frameworks in many EU member states are not equipped to address these characteristics of smart contracts.Another issue of importance is the varied approaches to smart contract regulation across the EU member states. The paper reveals that, currently, there is a spectrum of regulatory strategies from pioneering to conservative, and identifies the main obstacles to regulatory harmonization within the EU. Without a common legal framework, a smart contract deemed valid and enforceable in one state may not be recognized in another member state.Finally, the current EU legislation is not specifically designed for smart contracts. However, it impacts their regulation by addressing critical aspects of digital operations like data ownership, access and control. Thus, successful integration of smart contracts into the EU’s regulatory environment will require a concerted effort to address these complex challenges.
The 1980 Vienna Convention on Contracts for the International Sale of Goods (CISG) is currently the law of ninety-seven countries around the world. Part II (Formation of the Contracts) deals with the conclusion of the contract by way of the meeting of minds through offer and acceptance. CISG has been able to adapt to modern electronic means of communication such as email, despite the fact that the means of communication mentioned in the CISG are the ancient telegram and telex.When dealing with the electronic contract of sale, we are referring to those in which the offer and acceptance are made by electronic means, as derived from the rules of the offer and the acceptance under the CISG.In short, we are thinking about computers—today also mobile phones—connected to a network (internet). From this perspective, every purchase and sale contract under the CISG is capable of being concluded by electronic means following the classic and universal parameter (we find it in all legal systems in the world) of consent through the two declarations of will that give life to the contract, the offer and the acceptance. The offer and acceptance as a mechanism well present in the life of the contract and not only in its formation since other issues such as its modification or termination are observed under those parameters.The Vienna Convention has demonstrated its flexibility by adapting and applying without problems to electronic contracting. Technologies are evolving rapidly and we no longer question the validity of contracts concluded through electronic means but new and interesting perspectives emerge, as well as various legal problems that can be associated with the era of the digital economy, from the use of platforms as an intermediary in the contracting of goods or services—or simply as a meeting place or recreational or social exchange—when not as part of the commercial contracts themselves, the use of computer programs in the formation and performance of the contract, legal transactions on data, or the use of artificial intelligence in contracting.From a legal perspective, the question is whether the CISG, which is a traditional instrument of contract law, is sufficient to respond to the problems posed by the digital economy, specifically in the rise of the so-called SmartCcontracts, and the use of Artificial Intelligence (AI) in the formation of the contract.
The study investigates how smart contracts work with artificial intelligence to modernize business process automation systems and describes their complex operational structures for creating independent automation systems.The paper explores architectural components that allow AI models to merge properly with smart contracts while focusing on how machine learning functions enhance smart contracts for complex decisions, predictive abilities, and environment-responsive features.The study investigates technical applications of decorated smart contracts across stock and healthcare industries together with financial services and decentralized autonomous systems.Artificial intelligence-integrated smart contracts lead businesses toward a new future by automatically handling business operations while providing users with stronger capabilities for enhanced operations efficiency improvements and better decision outcomes.The blockchain deployment of self-executing electronic agreements written in code as smart contracts transform business operations by holding automated processes and maintaining clear operations and secure computing environments.The main drawback of traditional smart contracts exists in their restricted ability to handle intricate operations along with their inability to adjust to new situations.These limitations in traditional smart contracts become obsolete when AI technology integrates with smart contracts because the result is an analytical system able to forecast and gain wisdom through experience.AI continues to automate business decision-making functions across multiple industries because it enhances both human and workplace operations.
In the context of the boom in blockchain technology since 2008, the range of applications for smart contracts, which were first introduced in 1995, has been expanding. Their development, however, has been hampered by legal issues. The legal research on smart contracts is of great significance. Theoretically, it challenges and enriches the traditional contract theory and legal system. From a practical point of view, it helps regulate its application and protect the rights of parties in various fields such as finance and supply chain. This article delves into the legal nature of smart contracts, analyzing their relevance to traditional contract elements such as offers and acceptance. It also discusses the protection difficulties such as the difficulty of contract modification, the difficulty of contract rescission and the difficulty of contract validity. Suggested solutions include incorporating it into the existing legal system and using soft law for regulation. In summary, although smart contracts face challenges, with the development of technology and the improvement of laws, their intelligent development prospects are broad, and will drive social innovation.
This paper provides a brief history and status of securities legislation in Switzerland. The focus is on the «taken into account effects», which are classified by Swiss law and doctrine as sui generis objects, since by their legal nature they do not relate to things or to claims. The author also evaluates changes in legislation related to the regulation of the use of distributed ledger technology in the area of assignment and circulation of rights. Swiss private law provides issuers with a wide range of alternative forms of issuing securities, which over time creates problems with the formulation of concepts that reflect the essence of new objects. The author draws parallels with Russian dematerialized securities and concludes that Swiss approaches to the dematerialization of securities are not a panacea and cannot provide answers to pressing questions in the domestic doctrine, including what subjective right arises for paperless securities.
In recent years, the development of Solidity smart contracts has been increasing rapidly in popularity. Code cloning is a common coding practice, and many prior studies have revealed that code clones could negatively impact software maintenance and quality. However, there is little work systematically analyzing the nature and impacts of code clones in solidity smart contracts. To bridge this gap, we investigate the prevalence, evolution, and bug-proneness of code clones in solidity smart contracts, and further identify the possible reasons for these clones' occurrences. With our evaluation of 26,294 smart contracts with 97,877 functions, we have found that code clones are highly prevalent in smart contracts. Additionally, on average, 32.01% of clones co-evolve, indicating the need for careful management to avoid consistency issues. Surprisingly, unlike in traditional software development, code clones in smart contracts are rarely involved in bug fixes. Finally, we identify three main factors that affect the occurrences of clones. We believe our study can provide valuable insights for developers to understand and manage code clones in solidity smart contracts.
Background: The rise of blockchain technology has led to the development of smart contracts, which are self-executing contracts with the terms of the agreement directly written into code. While they promise enhanced efficiency, security, and automation, the legal implications of smart contracts on conventional contract law remain largely underexplored. The advent of these digital contracts challenges traditional legal frameworks and calls for a reassessment of existing contract law principles. Objective: This study aims to analyze the implications of smart contracts for conventional contract law, focusing on the legal, ethical, and practical challenges they present. The research seeks to evaluate how smart contracts align with or diverge from traditional contract principles such as offer, acceptance, and enforceability. Method: A qualitative research approach was employed, utilizing a comprehensive literature review and case law analysis to explore the intersection of smart contracts and conventional contract law. Interviews with legal experts and blockchain developers were also conducted to gather insights on real-world applications. Results: The findings reveal that while smart contracts offer substantial benefits in terms of automation and security, they also raise issues related to ambiguity, legal recognition, and the need for updated regulations. The study identifies a gap in existing legal frameworks regarding the enforceability of smart contracts. Conclusion: Smart contracts have significant potential to revolutionize contract law, but their integration into conventional legal systems requires substantial legal reform and adaptation. Further research is needed to establish clear regulatory standards.
The emergence of the Metaverse as a decentralized digital ecosystem has transformed traditional contract enforcement by introducing smart contracts, self-executing agreements embedded in blockchain systems. This study conducts a comparative legal analysis of the regulatory frameworks governing smart contracts within Metaverse operations in Nigeria and Uganda. Employing a doctrinal legal method, the research critically examines primary legal sources such as statutory laws and case law, alongside scholarly literature, to assess legal recognition, enforceability, and institutional preparedness. The study reveals a significant regulatory gap in Nigeria, where the absence of a comprehensive legal framework creates uncertainty in the enforceability of smart contracts, despite growing blockchain policy initiatives. In contrast, Uganda has established more definitive legal provisions, particularly through its Electronic Transactions and Signature Acts, which explicitly validate digital contracts. The novelty of this study lies in its regional comparative focus on emerging economies and its analysis of how traditional contract principles interact with decentralized digital platforms. The urgency of this inquiry is underscored by the rapid digitalization of commerce, which necessitates timely legal adaptation to prevent regulatory obsolescence and safeguard stakeholders. This research contributes to the discourse on digital governance by proposing a legal reform agenda for Nigeria, advocating for the adoption of a smart contract-enabling framework modeled after Uganda’s approach. Ultimately, it calls for regional and international harmonization to ensure legal certainty, consumer protection, and dispute resolution within Metaverse-driven economies.