Антон Назаров, Vladislav Shvedov, Vladimir Sulimin
Abstract Progressive technologies associated primarily with the use of the latest information systems are developing very quickly and are being introduced in the modern world. Recently, such phenomena as cryptocurrency and the smart contract, functioning thanks to the blockchain technology, have become very popular. The application of this technology is used in many areas: information technology, law, state, and municipal administration, etc. This article discusses the mechanisms of functioning and features of the latest Internet technologies in the context of the agro-industrial complex of Russia. Their practical significance for optimizing the relationship between the seller and the buyer has been investigated. The advantages of the blockchain for all market participants when using technology in the supply of agri-food products are justified. The research shows the possible difficulties and shortcomings of the existing content system, gives recommendations on the use of the blockchain and its evaluation for domestic producers of agricultural products. The authors propose a mechanism for using the blockchain technology in agriculture, which will change the existing practice of trade and settlement transactions between counterparties of the agricultural market.
The central institute of private international law — conflict of law — in the modern globalization and information context is evolving, which is largely due to the paradigm shifts in law, laid down and developed based on international commercial arbitration. The widely interpreted concept of «rules of law» actualizes a completely new view of conflicting arrays of rules: the law of the state and the system of non-state regulators. The medieval lex mercatoria, revived in the XX century, is modernized by cyberspace, acquires a new sound in the form of e-merchant or lex informatica, especially in the context of the parallel development of smart contracts and new decentralized forms of dispute resolution, one of which is blockchain arbitration. In particular, the issues of conflict of law, traditional for cross-border transactions, arise in relation to smart contracts, which, using blockchain technology, are inherently linked to several jurisdictions. It is important to reflect on the questions of applicability of traditional conflict-of-laws bindings to the regulation of relevant relations, including through forecasting the practice of choosing the law of a state, the substantive rules of which are adapted to the use of new technologies, or recourse to the rules of non-state regulation.
In the paper, the authors formulate a multidimensional concept of «cryptocurrency», which takes into account the technical, economic and legal nature of cryptocurrencies. In addition, the paper defines the relationship of the concepts of «cryptocurrency» with such commonly used terms as «digital currencies», «virtual currencies» and «electronic money». The authors understand cryptocurrencies as a kind of digital money, which is the result of the functioning of the corresponding computer program (digital code). Cryptocurrencies are created using the appropriate Protocol, operating in a decentralized manner, with the use of the blockchain technology. If the issue has a centralized issuer while maintaining other features inherent in these cryptocurrencies, then it is possible to talk not about cryptocurrencies, but about the issue of electronic money. The main difference between electronic money and cryptocurrencies is the presence of electronic money of the Central Issuer and the lack of it in cryptocurrencies. Another important difference between cryptocurrencies and electronic money is the way they are issued and stored. Cryptocurrencies are stored and issued in a decentralized manner, while the information about electronic money and transactions with them can be centralized on one server. There are also other differences, such as the mandatory use of asymmetric cryptographic encryption when creating cryptocurrencies, etc. Being digital money, cryptocurrencies at the same time are a kind of digital property that performs the functions of a means of payment in the society, does not have a physical form, that is, can not exist in the form of coins or banknotes. The authors support the addition of art.128 of the Civil Code of the Russian Federation with a new object of civil law (digital money) in the context of improving the draft law «On digital financial assets».
The author examines the features of the use of smart contracts in transactions in virtual property, taking into account the fact that the smart contract is a way of fulfilling those obligations in which the transfer of property provision takes place in the virtual world with the help of appropriate technical means. It should be recognized that the list of virtual property is open, at the moment it includes, for example, cryptocurrency, domain names, «game property», virtual tokens. The question of the legal nature of objects related to virtual property is relevant: are they a new independent type of property requiring special legal regimes, or are they a form of known property rights? The paper also notes that smart contracts differ in both vulnerabilities in computer code and insufficiently effective legal regulation. Smart contract, in the opinion of the author, is a kind of written (electronic) form of a contract, the peculiarity of which is that the will of the subject is expressed by means of special technical means in the form of program code. In this case, the will to conclude the contract simultaneously means the will to its execution upon the occurrence of certain conditions of the contract circumstances. In conclusion, the author shows that the automation of performance of obligations in particular and the digitization of contract law in general should not create obstacles to the implementation of the fundamental principles of good faith and contractual justice, to assess the proportionality of the distribution of rights and obligations of the parties, the equivalence of their property.
BACKGROUND: The rapid development of genetic and genomic technologies, such as next-generation sequencing and genome editing, has made disease treatment much more precise and effective. The technologies' value can only be realized by the aggregation and analysis of people's genomic and health data. However, the collection and sharing of genomic data has many obstacles, including low data quality, information islands, tampering distortions, missing records, leaking of private data, and gray data transactions. OBJECTIVE: This study aimed to prove that emerging blockchain technology provides a solution for the protection and management of sensitive personal genomic data because of its decentralization, traceability, encryption algorithms, and antitampering features. METHODS: This paper describes the case of a blockchain-based genomic big data platform, LifeCODE.ai, to illustrate the means by which blockchain enables the storage and management of genomic data from the perspectives of data ownership, data sharing, and data security. RESULTS: Blockchain opens up new avenues for dealing with data ownership, data sharing, and data security issues in genomic big data platforms and realizes the psychological empowerment of individuals in the platform. CONCLUSIONS: The blockchain platform provides new possibilities for the management and security of genetic data and can help realize the psychological empowerment of individuals in the process, and consequently, the effects of data self-governance, incentive-sharing, and security improvement can be achieved. However, there are still some problems in the blockchain that have not been solved, and which require continuous in-depth research and innovation in the future.
In order to develop the digital economy in the Russian Federation, the Program «Digital Economy of the Russian Federation» that is aimed, inter alia, at the formation of a regulatory framework for the legal regulation of new relations in the field of digital economy, was approved by the Decree of the Government of the Russian Federation No. 1632-r of July 27, 2017. Particularly relevant in this regard is the issue of cryptocurrency and bitcoin legal regulation. The article deals in detail with a special type of cryptocurrency, namely: bitcoin. The author analyzes the main problems associeted with the necessity of legal regulation of cryptocurrencies. The conclusion is made that legal regulation of cryptocurrency as a means of payment requires a complex approach and it is impossible without due regatd to the peculiarities of legal regulation of bitcoin. The paper provides for the interaction between the concept of bitcoin and other key concepts, namely: virtual currency and digital currency. The author concludes that it is necessary to create a non-governmental self-regulatory organization supported by the State in order to protect the interests of the cryptocurrency business. Since legal regulation of cryptocurrencies is global in its nature, the article examines the foreign experience of legal regulation of cryptocurrencies and their types.
The article examines the legal status of cryptocurrencies in Russia. The authors study the civil and criminal law aspects of this phenomenon. The legislation does not define the legal status of cryptocurrencies, while the theory of law and court practice have not yet worked out a unified approach to it. The authors present an overview of the existing positions regarding this issue and suggest that cryptocurrency should be regarded as other property. It is stated that whatever position is incorporated into law, in real life cryptocurrency is in global circulation and has a great potential. As for criminal law, the authors show that it is relatively independent from civil law when dealing with issues within its object. It is suggested that, for the purposes of criminal law, the available instruments should be adjusted to enable a prompt reaction to the crimes committed at the present moment. The authors analyze the possibility of recognizing cryptocurrencies as an object and instrument of committing crimes within the framework of current legislation. Using the examples different crimes, the authors demonstrate that cryptocurrency could act as an instrument of committing them. It is also stated that cryptocurrency could be recognized as an object of some crimes. To support their position, the authors present such arguments as crimes of terrorism, illegal trade in drugs and psychoactive substances, economic crimes and some others. They also discuss cryptocurrency as an object of theft. It is proven that there is a practical necessity to recognize cryptocurrency as an object of theft. Criticism of this approach by some researchers is also discussed. The authors, however, show that it is possible to solve this problem positively. They conclude that current Russian and foreign legislation should be amended and should define the legal status of cryptocurrencies; however, the goal of criminal law could and should be achieved even before these amendments are adopted.
Over the last few years, interest has emerged in blockchain, a decentralized ledger technology (DLT) created for use in cryptocurrencies, but with a great potential to be used in other application domains. One of them is supply chain management, tracking and tracing, which are key processes to the logistics industry, made difficult due to the lack of standards or trust between actors, miscommunication, fraud and bureaucratic delays, among other issues. In order to overcome some of these challenges, the solution presented in this dissertation proposes a blockchain system application created with Ethereum smart contracts technology. Its main purpose is to be used in supply chain and logistics for the tracking and tracing products, where the storage of important data is done and verified in a trustworthy, decentralized system. The technical solution presented here implements methods for tracking, certification, quality control and authentication, and integrates the communication of blockchain with IoT devices, which play an important role in monitoring products and automating these processes. This approach is validated by the development of a smart contract system and two browser-based applications to interact with it. The first application allows users to access and view their product’s tracking data, while the second bridges the communication between an Arduino UNO microcontroller collecting temperature readings and our smart contract system. The work presented here highlights the benefits of these technologies applied to logistics and validates the feasibility of this approach, ultimately giving insight into the capabilities, qualities, but also of the limitations a system like this can have.
O.S. Bolotaeva, Алла Степанова, Світлана Алексеева
This article examines the legal nature of cryptocurrency. Comprehensive analysis is conducted on the legal nature of digital currency; its correlation with the traditional money and e-money is determined. The author summarizes and systematizes the opinions of the scholars on these issues, as well as the existing legislation. The object of this research is the public relations arising process of functionality of crypto technologies and with regards to such the phenomenon of cryptocurrency in Russia. The subject of this research is the Constitution of the Russian Federation, normative legal acts that comprise the current legislation of the Russian Federation, as well as scientific works dedicated to the public relations in this sphere. The goal lies in examination and revelation of the financial legal essence of cryptocurrency, its legal nature and role among the objects of civil rights. The conclusion is made that the states will act towards the implementation of cryptocurrency into the economy. Digital currency is a promising trends of development and investment. The question of legal regulation and consolidation of the status of cryptocurrency remains important and relevant for not only Russia or any country, but the entire world community. The economy that is based on cryptocurrency has good chances to become a reality on the global scale.
The paper considers the opinions of domestic and foreign authors on the concept of cryptocurrency, the principles of its operation and the need to establish its legal status. The author’s definition of cryptocurrency is formulated and the thesis that cryptocurrency can be classified as «other property» is justified. The author analyzes the most common court decisions in criminal cases. Based on a study of foreign experience in the fight against illegal circulation of cryptocurrency, it was found that initially, before the emergence of mass demand for cryptocurrency all over the world, demand for them was observed in the criminal environment to pay for the supply of narcotic drugs and weapons, to finance terrorism and legalize (launder) income obtained in a criminal manner, in connection with which many people subsequently mistakenly assumed that transactions with cryptocurrencies are anonymous. Meanwhile, the cryptocurrency is far from being anonymous: each transaction carried out in a distributed network is permanently recorded in a public blockchain, which helps to solve crimes in this area. The adoption in the Russian Federation of a fundamental law containing the necessary terms and concepts regarding cryptocurrency activities and regulating the status of cryptocurrency in Russia will further develop measures for the criminal law protection of objects of encroachment that are currently not regulated in any way.
Developments in Blockchain, smart contract, and decentralized application (“dApps”) technology have enabled new types of software that can improve efficiency within law firms by increasing speed at which attorneys may draft and execute contracts. Smart contracts and dApps are self-executing software that reside on a blockchain. Custom smart contracts can be built in a modular manner in order to emulate contracts that are commonly generated and executed in law firms. Such contracts include those for the transfer of services, goods, and title. This article explores exactly how implementations of smart contracts for law firms may look.
Abstract Digital technologies are opening new opportunities for business. The article is devoted to the analysis of the legal nature of the cryptocurrency as an object of financial and legal regulation from the point of view of Russian legislation. The analysis of the qualification of the cryptocurrency is described as money, electronic money, foreign currency, other property, as well as the possibility of assigning crypto-loans to obligations rights. The conclusion is made about the possibility of treating the cryptocurrency as private money on a par with national currencies.
Explicit legal regulation is still lacking in many countries for cryptocurrencies like Bitcoin, Ripple, Ethereum, and others. This is not unusual for a new technology. On top of such cryptocurrencies, another new technology, so-called smart contracts, has been established. Smart contracts are specialized computer code with the aim to automate the exchange of (digital) assets. In decentralized applications (Ðapps), parts of the business logic and the data storage of traditional web applications are replaced with smart contracts. They are credited with considerable potential for commercial use, especially in FinTech but also beyond. Smart contracts mostly lack explicit legal regulation as well. Hitherto there is little experience in applying current law to them. Building a business on uncertain terrain is at least risky. We seek a clarification of smart contracts in the legal context, especially against the background of the Civil Code.
Smart Contracts, which derive from Blockchain technology, are one of the most peremptory applications of this. However, as it is a very recent technology, investors' uncertainty and fear makes their development slowly and cautiously. There are, therefore, a number of questions and legal problems that arise. The paper identifies what revolution Blockchain adds to the contractual processes, exploring its potential and analysing the main legal difficulties it is facing. It seeks the analysis of the pros and cons of this new technology, specially the questions about enforcement, nature and form, consent and (in) flexibility. The purpose of this investigation is to recognize the nature of this technology and its impact on the Contract Law. And because of this, the impact and challenges that it brings to the Governance of a nation as well as on private companies and individuals. Therefore this study is based mostly in the review of already existing embryonic laws about Blockchain technology or similar, authors that wrote about Smart Contracts and also some recent news to show the social and economic impact in the world. In short, the subject that this paper presents is the beginning of a true technological, social and economic revolution that must be anticipated and prepared by the law and those who work with it.
As we have seen, one of the major advantages of distributed ledger technology that is touted by promoters is the enhanced level of privacy that accompanies the product. In its earliest application as envisaged by Nakamoto, one of the features behind the technology was its use of public key cryptography that would help to conceal the identity of a sender of Bitcoin. 1 Under this regime, only an individual’s public key is available for viewing by third parties who can see that funds have been sent from one party to another on the Blockchain but without any identifying information that would allow a third party to discover the identities of the participants. Moreover, this is seen as a means of safeguarding the personal privacy of users who will have personal details made increasingly available on the Blockchain as the technology increases in prominence.
Having set out in the last chapter some of the basics that underlie the Blockchain, this chapter will further develop some of the concepts described previously. In particular, the concept of the Blockchain will be expanded upon to encompass different versions of the Blockchain currently in operation. The reader will be introduced to some of the technical refinements in the Ethereum Blockchain that have given rise to what has been termed ‘smart contracts’ that allow the automatic execution of code to ensure that certain actions take place once a stipulated set of conditions is found to exist. From here, the discussion will move to consider how Blockchain proponents seek to resolve some of the conventional consumer protection issues that tend to emerge from a doctrinal perspective in consumer sales contracts.
П. С. Ложников, Alexey Е. Sulavko, Samal S. Zhumazhanova
The paper presents a study on the possibility of using distributed ledger technologies in managing various business processes based on electronic document management systems. In the finance and trade sphere, the type of distributed ledger technology, blockchain, is already presented as a real alternative to the existing infrastructure, however, the experience of developing and implementing such solutions in electronic document management systems is currently insufficient. The model of hybrid workflow proposed earlier by the authors of the article has a number of advantages over usual scheme of information exchange, and combines equal document protection in paper and digital form using cryptographic and biometric methods. The described distributed ledger-based hybrid workflow scheme also provides decentralized information storage, a fixed size of data blocks stored and transmitted by users, generation of cryptographic keys using biometric images of authorized users, and identification of subjects that performed various actions on document regardless of its type format. The authors also considered possible problems that might be encountered in the development and implementation of such an information interaction scheme.
Sergey Ivantsov, E. L. Sidorenko, Борис Спасенников, Yuri Berezkin · 5 authors
The authors have analyzed crimes connected with the use of virtual currency in the regional and international aspects. They introduce a new category of «cryptocrime» understood as the aggregate of publically dangerous acts, united by their common systemic characteristics, committed against or using the products of distributed registries (cryptocurrency, tokens and other forms of digital financial assets). They analyze each of the cryptocrime segments separately: illegal trade in psychoactive substances (narcotics, psychoactive substances, precursors), pornography and other prohibited content (including illegal services); laundering of criminal proceeds; theft of cryptocurrency and tokens. Using the scientific research methods (comparative, sociological, statistical analysis and extrapolation of data, building a trend line, etc.) the authors identify regularities in the dynamics of each type of cryptocrime as well as key factors facilitating them. The goal of the authors is to conduct a systemic examination of crimes committed against and using cryptocurrency and to determine the prospects of developing different segments of cryptocrime. To achieve this goal, they analyze qualitative and quantitative characteristics of illegal trade in narcotics and pornography, legalization of criminal proceeds and theft of digital assets. They name the anonymity of cryptocurrency as a factor facilitating illegal trade in drugs, while the growing scope of the legalization of criminal proceeds and theft is facilitated by the fact that cryptocurrency and tokens do not have a legal status as objects of civil law and objects of encroachments on property. The analysis allows the authors to conclude that without effective criminological measures the level of such crimes will continue to grow and may double by the end of 2019. According to the authors, the priority directions of international criminal policy in the sphere of cryptocrime prevention include determining cryptocurrencies’ legal status, licensing cryptocurrency trade (stock exchange services, exchange platforms, companies issuing tokens), setting international standards of counteracting the legalization of criminal proceeds and the financing of terrorism, creating a cryptocrime database.
This article argues that there are many questions that lawyers might ask, and conversations that they might have, about smart contracts; that some questions that are asked are more important than others; and that there are some questions that are not asked but which should be asked. First, it is argued that the question that preoccupies ‘coherentists’ (concerning the application of the law of contract to smart contracts, and the fit between smart contracts and the paradigmatic ‘fiat contracts’ that are recognised by the law of contract) is neither as puzzling nor as important as might be supposed. Secondly, it is argued that, if there are concerns about the acceptability of smart contracts, then the conversation that needs to be had is of a ‘regulatory-instrumentalist’ nature; in particular, if the question is one of public policy restrictions on the use of smart contracts, then the appropriate balance of interests needs to be made by an institution that has both the necessary mandate and the appropriate mind-set. Thirdly, it is argued that there are conversations that we currently do not have but which urgently need to be had. Blockchain is a potentially transformative technology and it is important to have more fundamental conversations about the kind of community that we want to be.