Transparency and accountability are important aspects to any technological endeavor and are popular topics of research as many everyday items have become ‘smart’ and interact with user data on a regular basis. Recent technologies such as blockchain tout these traits through the design of their infrastructure and their ability as recordkeeping mechanisms. This project analyzes and compares records produced by non-fungible tokens (NFTs), an increasingly popular blockchain application for recording and trading digital assets, and compares them to ‘document standards,’ an interdisciplinary method of contract law, diplomatics, document/interface theory, and evidentiary proof, to see if they live up to the bar that has been set by a body of literature concerned with authentic documents. Through a close reading of the current policies on transparency (i.e., CCPA, GDPR), compliance and recordkeeping (i.e., FCPA, SOX, UETA), and the consideration of blockchain records as user-facing interfaces, this study draws the conclusion that without an effort to design these records with these various concerns in mind and from the perspectives of all three stakeholders (Users, Firms, and Regulators), any transparency will only be illusory and could serve the opposite purpose for bad actors if not resolved.
Abstract The history of Islam is inextricably connected to a celebrated history of trade and commerce which distinguishes it amongst monotheistic faiths. The modern incarnation of Islamic trade finance, however, bears only rudimentary similarity to the trade practices of old. Modern Islamic trade finance is devised to replicate conventional trade practices so that the barter-like immediacy of the Islamic contract of sale has been replaced with promissory attributes (wa’d). Yet Islamic law (sharia) has shown itself to be fully capable of adapting to modern trade practices so long as its major principles remain intact. The introduction of blockchain and smart contracts for Islamic trade finance does not change this basic calculus and yet these technologies promise to revolutionise Islamic trade practices in a way that compels the industry to operate in closer keeping with its commercial principles. Paradoxically, these technologies require substantive changes in the way in which Islamic trade finance is practiced, helping the industry to overcome its attachment to legal artifice (hiyal). Using comparative law methodology, this chapter briefly examines a short history of trade and commerce in the Islamic tradition, followed by the development of modern Islamic finance. It addresses the principles of Islamic commercial law as the basis for understanding the murabaha contract for trade finance, followed by an analysis of the legal and sharia-related issues that English courts have dealt with in the practice of Islamic trade finance. Finally, the chapter considers the transformative capacity of blockchain and smart contracts for Islamic trade finance, highlighting prominent legal and sharia-related issues that compel the industry to transform its trade practices markedly.
There is an increasing commercial imperative to automate various <br/>components of the construction contract administration process, including <br/>technologies such as sensors, common data environments, machine learning <br/>frameworks and smart contracts. These technologies of automation augment <br/>the role of the superintendent that administers construction contracts and <br/>impact how the superintendent exercises discretion in relation to legal <br/>obligations captured in the construction contract. This article analyses the <br/>discretionary aspects of a superintendent’s legal obligations as articulated in <br/>Australian standard form construction contracts. It argues that the exercise of <br/>superintendent discretion in a fair and reasonable manner signals <br/>trustworthiness to the construction industry and positions the superintendent <br/>as a trusted intermediary on the construction contract. Consequently, the <br/>augmentation of the trusted role of a superintendent requires a deeper <br/>understanding of how automation of contract administration processes can <br/>support the signalling of trustworthiness. To do so, this article adopts a <br/>conceptual framework of trustworthiness to examine how the exercise of <br/>superintendent discretion signals trustworthiness in three ways: ability, integrity <br/>and benevolence. The article concludes that care must be taken when <br/>deploying technologies of automation in the contract administration process in <br/>order to ensure that superintendent discretion is exercised fairly, reasonably, <br/>and in good faith
The unique characteristics of sovereign debt finance provide fertile ground for opportunistic behavior and intractable disputes among states and their creditors. Lacking reliable contractual enforcement mechanisms and formal bankruptcy procedures, the sovereign debt restructuring process is hampered by fragmentation, costly standoffs, and unpredictable outcomes. The result is a non-system of ad hoc, decentralized negotiations and litigation that some fear is perpetually at risk of falling apart. To address these concerns, recent years have seen renewed efforts to fix sovereign debt through soft law, public-private collaboration, and informal governance mechanisms, which this Article collectively refers to as sovereign debt governance. This Article focuses on one of the most prominent proposed reforms in sovereign debt governance: the use of creditor committees to facilitate engagement between a sovereign debtor and its private external creditors. Notwithstanding the uniqueness of sovereign debt in international law and financial regulation, we explain how the debtor-creditor relationship reflects a fundamental governance challenge amidst individual distrust and collective disorder. This challenge suggests that the sovereign debt restructuring process can be improved by reforming the procedural rules and institutional frameworks that govern debtor-creditor engagement. To assess this proposition, we examine the use of creditor committees in the current era of sovereign debt, focusing on factors that influence the conduct of debtors and their creditors vis-a-vis each other. Drawing on our observations, we consider the potential value and limitations of creditor committees in the context of sovereign debt governance.
La blockchain constitue l'un des développements technologiques majeurs de ces dix dernières années en matière de sécurisation des échanges. Ses applications sont très variées, allant des crypto-monnaies, en passant par les smart contracts ou les initial coin offerings (ICOs), jusqu'à la création de decentralized autonomous organizations (DAOs). L'ensemble de ces applications, de même que celles qui restent à venir, présente la particularité d'évoluer dans un environnement détaché de toute assise territoriale. Cette situation spécifique rend à l'évidence complexe la confrontation de la blockchain aux techniques du droit international privé. Pour autant, il n'est pas certain que l'on puisse s'en dispenser car à travers celles-ci, c'est la possibilité pour les droits étatiques d'encadrer les relations juridiques fondées sur cette technologie nouvelle qui est en jeu.
This chapter draws together few studies examining the views and perceptions of construction industry professionals. It aims to portray a sense of the underlying attitudes and the range of understanding towards smart contracts and information technology more generally. Smart contracts are deemed desirable because they will save cost and time in automating certain aspects of construction project performance while saving cost and time in transaction arrangements. The knowledge gap identified will necessitate a lengthy and costly education to ensure people fully understand the technology and its potential before considering adoption. The study is akin to taking the temperature of a patient during a health check. The responses captured a reflection of the industry. The importance of definitions in legal scholarship and contract writing is of great importance. The last reference to the application to manufacturing processes echoes the constraint about the vast scope of variables that would be experienced on a wider construction project.
Blockchain technology is provoking significant transformations in the logistics industry, creating a complex environment that challenges business change. This study endeavors to advance the research regarding blockchain-based logistics management by identifying tensions and paradoxes accompanying blockchain adoption for handling digital freight information. Addressing the gap of scarce empirical research on adopting this technology, we conducted 12 expert interviews in the German logistics industry. While confirming and advancing previous research, we found several incompatibilities between the technology and its application, as practitioners tend to adopt blockchain features selectively instead of full acceptance of the respective privacy model. Our analysis reveals that the automation of several functionalities on a platform is among the features of blockchains with the greatest potential to create change in handling digital freight information when related governance mechanisms are in place. Building on these findings, the study proposes main strategies to manage the observed tensions, particularly separation, differentiation, and integration strategies. Thereby, our research contributes to the understanding of digital transformations based on immutability and disintermediation when logistics service providers are engaged in blockchain projects.
This report is the first of a series of brief papers relating to the main legal aspects of non-fungible tokens (NFTs). The aim is to highlight NFT characteristics and provide an extensive but not exhaustive overview of the legal classification and frameworks across the globe. The report places a special focus on EU laws, but it is not limited to this.
Roman Beck, Mikkel Boding Kildetoft, Nebojsa Radonic
This paper investigates how blockchain technology can improve information flows on empty container repositioning at an inter-organizational level in the shipping industry. By adopting a theory-generating design science research approach, we develop and evaluate an industry-wide blockchain artefact, named Greenbox Platform, where container owners can register, trade and share containers. It brings efficiency for shipping companies via cost reduction through minimizing the need for empty container repositioning, and effectiveness for leasing companies via container proof of ownership. The paper contributes to its application domain by a practical, theory-driven and novel application of blockchain technology to the shipping industry. Theorizing on its development and evaluation, the paper provides preliminary groundwork for two nascent design principles: 1) Explicitly define a structure of incentives for interorganizational and cross-industrial blockchain applications where stakeholders’ interests are not necessarily aligned; and 2) Consider environmental sustainability as a non-functional requirement in the development of a blockchain artefact.
Smart contracts promise to materialize a lifelong dream as they purport to be self-executing, cost-efficient, free of human error and other inefficiencies commonly attributed to traditional contracts. Nevertheless, the fact that smart contracts originate from and embody human interactions also makes them imperfect and prone to be affected by the shortcomings of the relationships that they regulate. This chapter explores some of the most important questions raised by the idea of smart contracts, including their contours and substance, whether they should be regarded as contracts or not, their relationship with the legal system (both domestic and international) and the comparison between smart contracts and traditional contracts. The rigidity, tamper-proof nature, self-sufficiency and completeness of smart contracts are generally viewed as important features, which make them particularly attractive for international commercial transactions where language, culture, different legal standards and other differences are usually the source of tension besides raising transaction costs. Smart legal contracts, however, are not a complete replacement either for traditional contracts, or for all human involvement in commerce.
The paper analyzes the potential impact of blockchain technology and smart contracts on the shipping industry. As the shipping industry represents a complex system of various actions that have to be controlled and registered, blockchain technology could serve as a tool to allow the streamlining of numerous processes, whilst at the same time taking the human factor out of multiple elements where trust between involved parties is an issue. The authors therefore first present how blockchain technology works and what smart contracts are, in order to give an insight into their applicability in the shipping sector. After a general overview of the technological and legal characteristics of blockchain technology and smart contracts, the authors present examples of relevant subjects, relations, and contracts in the shipping industry. Based on the charter party, a key contract in the shipping industry, the authors present the existing problems which could potentially be solved using blockchain technology. Besides the benefits of blockchain technologies, the authors furthermore point out the existing deficiencies that still make blockchain technology hard to apply in legal relations within the shipping industry. Based on these insights, the authors highlight the current developments in this area and present the existing and expected regulatory reforms of blockchain solutions and smart contracts within the European Union.
The purpose of this exploratory research is to investigate the adoption tendencies of the Internet of Things, Big Data, Augmented Reality and Distributed Ledger technologies applied for Bills of Lading, along with the tendencies to adopt Cyber Safe environments for fleets, governing the future of onboard technology adoption in the Greek maritime shipping industry. The final goal is to determine the overall attitude regarding technology adoption of the Greek maritime industry, and henceforward, create an initial framework for further research for those who wish to examine future information technology adoptions within the Greek maritime shipping industry, or any other industry of traditional nature.
In this work author compares smart-contract to letter of credit. Discovering technological and law aspects of smart-contract. The author underlines indivisibility of these aspects, which consolidate in unique symbiosis of digital solutions and law constructions. Moreover, technical and law nature are to be discovered in this paper, particularly, program and law mechanism of smart-contract. Comparing smart-contract to letter of credit, author concludes that smart-contract is one of types of letter of credit as a payment instrument.
Kriptovaluta je digitalna ili virtualna valuta koja je osigurana kriptografijom, čineći je gotovo nemogućim za krivotvoriti. Mnoge kriptovalute temelje svoju mrežu na decentraliziranoj blockchain tehnologiji. Osnovna značajka kriptovaluta je da ih ne izdaje nijedno središnje tijelo, što ih čini teoretski imunima na uplitanje i manipulacije od strane vlade ili drugih interesnih skupina. Kriptovalute su sustavi koji omogućuju sigurno plaćanje putem Interneta i u unosima u sustavu su predstavljeni u tipu virtualnih „tokena“. „Kripto“ se odnosi na različite algoritme šifriranja i kriptografske tehnike koje se unose da bi se zaštitila privatnost korisnika.
Pamateni ugovori kao vrsta digitalnog i računalnog izvršavanja neke njemu specificirane programske logike mogu poslužiti u raznim primjenama gdje sudionici ne vjeruju jedan drugome i potreban im je posrednik ili decentralizirani medij kao blockchain gdje nitko neće imati kontrolu, a pametni ugovor će se svejedno moći izvršiti. Pametni ugovori imaju usku funkcionalnost ako se samo bave onim što se događa na blockchainu, ali ako ih želimo povezati sa vanjskim svijetom potreban je entitet imena Oracle, koji služi kao poveznica sa informacijama iz vanjskog svijeta i operacijama koje se jedino mogu izvršavati izvan blockchaina (npr. slanje novca preko bankarskog sustava itd.). Mi smo koristili Chainlink decentraliziranu Oracle mrežu i njihovu tehnologiju da bi povezali pametne ugovore sa vanjskim svijetom. Kreirali smo mobilnu i web aplikaciju te ih povezali sa pametnim ugovorom kreiranim na testnom Kovan Ethereum blockchainu. Funkcionalnost tog pametnog ugovora je bila a registrirani korisnici mogu prelaziti zadane rute te biti sigurni da će njihovi lokacijski podaci nastali prilikom izvršavanja rute na siguran način obraditi i biti upisani na blockchain pomoću Chainlink čvorova tj. operatora koji su uz pomoć dodatkovnog programa (eng. Data Adapter) procesirali i obradili te lokacijske podatke.
Abstract How should the doctrine of unilateral mistake apply when a programming error results in a buyer's algorithmic trading programme accepting an offer generated by the seller's trading programme to exchange cryptocurrencies at 250 times the current market rate? How should the knowledge element be adapted given that algorithmic trading necessarily means that the traders’ minds were not engaged at the moment the contract was formed? These novel issues came before the Singapore Court of Appeal in Quoine Pte Ltd v B2C2 Ltd . The decision further cautions customers of cryptocurrency exchanges not to assume that they have property rights in the cryptocurrencies held by the exchange and to examine carefully the nature of asset holding arrangement found in the documentation.
The paper bill of lading remains pervasive despite numerous problems associated with its form. Blockchain heralds change as it allows unique tokens to be possessed and traded peer-to-peer instantaneously over the internet without the need for a trusted central administrator. Blockchain furthermore promises to ease processes thanks to its applicability in smart contracting procedures. The Model Law on Electronic Transferable Records (MLETR), passed by UNCITRAL in 2017, provides the relevant legal framework for legal protection of the blockchain bill of lading. This paper proposes Ethereum as a viable smart contract-enabled blockchain platform for a bill of lading system and examines said system’s compatibility with the MLETR. The analysis also shows that blockchain technology may have significant consequences for the ‘control’ approach for establishing possession of an electronic transferable record.
Lawrence Henesey, Y. Lizneva, Robert Philipp, Christopher Meyer · 5 authors
Ports are vital to the global economy, as up to 90% of goods are transferred through seaports. With increasing vessel sizes, cargo volumes and higher demand for supply-chain optimization, seaports are required to be more efficient and competitive. In the present study, a proposed solution incorporating IoT and Blockchain is considered into automating many of the activities in the load planning process, which is then evaluated via simulation. Real data is collected concerning different types of cargo for RoPax vessels with the intended goal of reducing planning time in a seaport. The results contribute as one piece of the mosaic on the avenue towards becoming a “Smart Port”, which deploys various digitalization technologies in order to become a fully automated port. The suggested approach to be integrated, builds upon IoT sensors in combination with the lightweight version of a Blockchain to improve balance indicators on a trim of a vessel. A developed simulation tool was used for evaluating a number of scenarios, with each scenario run set to 2500 times. The simulation results indicate an improvement of 50-160% from the current load planning operations for RoPax vessels.
The paper will focus on the latest changes of the transport sector due to the challenge of globalisation and to the advent of the digital age, that have offered new opportunities to the international maritime business, thus facilitating the development of more secure and streamlined services and data transactions. in such a perspective, this study provides an overview of the recent technological advancements and of the attempts, at the regulatory level, of settingup a system based on information and communication technologies (ICTS) in order to provide for electronic alternatives regarded as perfectly interchangeable with the paper transport documents. Particular attention is focused on the examination of the blockchain technology, whose influence on the logistics and transportation industry is going to keep growing. the research analyses the implications of the use of electronic documents and related to the development of smart contracts in the international trade and their substantial benefits, both in terms of transaction speed, efficiency and simplicity and in terms of cost reduction for transportation and logistics companies.