The article is devoted to the study of legal nature of smart contracts. Smart contracts definitions are analyzed, the data in the project of the Federal law «About digital financial assets» № 419059-7 (passed by the Gosudarstvennaya Duma in the first reading 20.05.2018), and in the technical, legal and economic literature, and outlines the main approaches to defining the legal nature thereof. The author comes to the conclusion that nowadays smart contracts should be qualified as technical means of contract performance, and that the statutory rules applicable to electronic contracts cannot apply to smart contracts.
The current article deals with a performance of obligations arising from a smart contract. Author considers the possibility of legal definition of such a performance and application of a previously expressed consent in these circumstances. It is proved that the performance of obligations from a smart contract has its own legal characteristics that differ from what is described in the Civil Code of the Russian Federation as for performance of obligations, and is automated. Using the category «automated performance» the author refers to Russian bills and foreign acts on smart contracts. The author is to offer the following definition for practical use of smart contracts: «performance of obligations as well as using, modifying and ending of rights can be done automatically on the basis of electronic algorithm confirmed by parties by previously expressed consent with the provisions of a contract». The author also analyses the newest Russian and foreign practice as for performance of obligations from a smart contract, and courts positions if there is an omission in a smart contract.
Iria Giuffrida, Fredric I. Lederer, Nicolas Vermeys
first met when we, along with Ed Imwinkelried and Fran Gilligan, were colleagues on the faculty of what today is The Judge Advocate General's School and Legal Center.We
Smart contracts are computer programs executed on virtual machines, which are used to regulate relationships between the subjects of law. They allow parties to foresee, with a high degree of certainty, how will the contractual relationship develop and by the use of blockchain technology they provide a high degree of certainty. It has been conjured that smart contracts will offer significantly lower transaction costs in relation to traditional contracts. The paper analyzes this proposition and finds that not only are the gains doubtful, but also that in some cases transaction costs may be significantly higher.
O Blockchain é uma tecnologia emergente recentemente generalizada para muitas áreas de atividade. O seu modo de operação descentralizado enquadra-se perfeitamente em vários cenários onde o principal desafio reside na melhoria da comunicação máquina-máquina e na possibilidade de realizar transferências seguras com serviços de valor acrescentado. As redes IoT são uma das áreas possíveis de aplicação da tecnologia Blockchain, uma vez que, para poder satisfazer os requisitos da indústria, a arquitetura atual das redes IoT tem limitações, que podem ser superadas através da melhoria das comunicações entre dispositivos e do acesso a formas evoluídas de agregação e consumo dos dados recolhidos. Este trabalho procura avaliar a combinação desses dois paradigmas - IoT e Blockchain -, procurando entender como o IoT pode beneficiar das funcionalidades que o Blockchain oferece: um sistema de armazenamento mais económico, descentralização e verdadeira redundância, confiança sem autoridade central - privacidade - e segurança reforçada. Por outro lado, o Blockchain como infraestrutura financeira para o IoT é também um aspeto fundamental desse trabalho. Na prova de conceito construída, este cenário é implementado, pois os dados de um sensor podem ser transacionados com uma entidade que os solicite. São igualmente realizadas análises estatísticas e de desempenho relativamente à arquitetura implementada, sendo também apontados alguns pontos de melhoria para alavancar o uso do sistema em situações reais.
This paper presents an introduction to the current state of art of the Blockchain and Smart Contract technologies. Blockchain is a fast-disruptive technology becoming a key instrument in share economy. The Blockchain-based Smart Contract aim to automatically and securely execute the needed responsibilities of a contract without the support of a centralized execution authority. The Smart Contract runs on top of the Blockchain to facilitate, execute and enforce an agreement between un-trusted parties without the interfere of third party to trust it as this Smart Contract is an executable code that runs with rules on the Blockchain. Smart Contracts have some features that serve the goals of social justice and fairness. The paper presents the basic important information about the structures of the Blockchain and Smart Contract technologies and conduct a comparison between the different methodologies used in the Smart Contracts. The issues faced within the Smart Contract technology are surveyed. The four key issues are identified as: codifying, security, privacy and performance issues. We survey case cases of usage of the Blockchain in various business sectors like real estate, voting system and supply chain. The paper aims to assist a developer to grasp the big picture of the Blockchain technology and to further assist in the decision process of suitability of the technology to a specific application area.
The analysis of using so-called smart contracts, which have become widespread in recent years. The definition of the term “smart contract” is given, some classification is offered for them. A comparative analysis of traditional and smart contracts in the part of legal regulation of their application was conducted. The article formulates legal problems of the theoretical and practical direction, which are a significant barrier to the use of smart contracts in the context of widespread use of Internet of Things, some solutions have been suggested for them.
INTRODUCTION Much has been said about the effect of disruptive technology on business. In this contribution, an attempt is made to consider, in general terms, the implications of ‘disruptive technology’ for the law, particularly contract law. The particular disruptive technology focused on in this contribution is more of a ‘disruptive development’: the so-called digital revolution, and the new business opportunities and production methods which have emerged from the increasing digitalisation of so many activities, not least by utilising the potential of the Internet combined with smart-technology. These developments undoubtedly pose interesting challenges for contract law, particularly established paradigms forming the basis of many legal rules. This analysis begins by exploring the notion of disruptive technology, before considering the general challenges for, and possible responses by, the law as a result of new developments in technology or business practice. It will then highlight the main novelties of the digital revolution and turn to some of the specific legal issues which the digital revolution seems to create and consider potential legal responses. The key argument of this contribution is that there is a danger of rushing towards introducing new legal rules in response to new developments without rigorous consideration of the specific issues for both businesses and consumers which are created by things such as the digital revolution. Once these issues have been fully scoped, any legal responses need to be calibrated carefully so as to deal with these issues in a focused manner – there is a risk that, in the rush to provide a legal response, more problems might be created than solved. DISRUPTIVE TECHNOLOGY Before considering the impact of the digital revolution on contract law, a few words should be said about the meaning of ‘disruptive technology’, a term used frequently in this context. This notion has gained prominence in the writings of Clayton Christensen, and focuses on the way technological developments can affect the way existing business models operate. In brief, Christensen distinguishes between two types of technological evolution: first, there is ‘sustaining technology’, by which he means technology which is evolving gradually or simply improving established technologies, particularly their performance. In contrast, ‘disruptive technology’ is a new type of technology, which, when first introduced, might be less reliable than established technologies, but will become reliable rapidly.
Smart contracts are technically defined as an event-driven programs, with state, that run on a distributed, decentralized, shared and replicated ledger (blockchain) and that can take custody over and transfer assets on the ledger. This new invention enables declarations of will to be expressed as self-executing computer code. The fact that smart contracts can transfer assets without the need for judicial system creates many questions about their place in the civil law. Also, it raises a question about their legality. This paper explores some basic concepts related to smart contracts and tries to set boundaries to their legality in the framework of civil law in scope of form and interpretation.
The article explores the problem of the legal regulations of cryptocurrencies, considering socio-economic factors and changes in the modern globalized world.
The article deals with the certain aspects of the criminal law measures appliedto legal entities, the phenomenon of electronic legal entities (Decentralized Autonomous Organization or Decentralized Autonomous Corporation), the possibility of applying criminal law measures to electronic legal entities.
This chapter looks beyond the novelty of self-executing ‘smart contracts’ in blockchain networks and explores developments against the background fact that commercial parties have, for centuries, used documentary credit to simulate autonomous performance. Blockchain-based smart contracts and documentary credit share three core functionalities which are essential to any effective autonomous performance, analogue or digital—they both (i) act through internalized media of exchange; (ii) operate as closed systems; and (iii) provide means of securing sufficient resources to guarantee contractual performance. Using these three functionalities as a framework, this chapter conducts a comparative analysis of mechanisms for effecting autonomous contractual performance in a commercial setting. From this comparison, a few hypotheses are drawn regarding the potential areas where smart contract technology is more likely to find fruitful application. In particular, the chapter considers potential limitations to applying smart contracts to scenarios beyond digital asset transfers, how dispute resolution mechanisms should be designed to complement (rather impair) the autonomous nature of contractual performance under smart contracts, and potential capital cost implications which might arise in some cases when parties seek to replace human intermediaries with smart contracts.
An emergent use of the blockchain technology is to enable the transfer of digital assets between two parties. An extension to this is the Smart Property in which physical assets could be transferred too. Another extension is the exchange of services of all kinds in form of digitally executed contracts. In this paper, the problems with existing attempts to implement an all-inclusive smart contract platform were identified and a new framework proposed. In this framework, the technical and legal terms of any contract could be executed digitally if prepared with appropriate legal prose and required parameters for each of the terms of the contract. The cores of the framework are the technical, business and legal models, which are connected to each other. The technical model adapts block chain technology while ensuring granularity in implementing the terms of the contract as presented by the legal model using legal prose and necessary parameters. Using the proposed framework, some questions that have persisted with current implementation of Smart contracts that involves the blockchain were answered. The framework improves the efficiency and practicability of using smart contract for physical assets and non-financial services with emphasis. The contribution is mainly on ensuring an adoptable and practicable smart contract platform.