Smart contract: from definition to certainty
Abstract
The purpose of the present article is to gain an understanding of the opportunities and difficulties created by the introduction and development of the practice of network (smart) contracts. Our research methodology is based on a holistic set of principles and methods of scholarly analysis employed by modern legal science. It uses a dialectical method involving both general approaches (structural system method, formal logical method, analysis and synthesis of individual elements, individual features of concepts, abstraction, generalization, etc.) and particular methods (legal technical, systematic, comparative, historical, and grammatical methods, method of the unity of theory and practice, etc.). We analyze the views of lawyers and other specialists from Russia and abroad, legislative innovations in the field of digital technologies, the practice of blockchain-based smart contracts, and the main risks (whether legal, technological, operational, or criminogenic) of smart contracts for economic activities with a study of their causes. In the present-day situation, it is necessary to move from the legal definition of the smart contract and its legal and technological characteristics, advantages and disadvantages to the implementation of startups in a wide range of areas, especially business, public regulation, and social relations. Scholarly and information support for such processes will contribute to the development of industry, public administration and digital technology applications to improve the life of individual citizens and society as a whole. The introduction of smart contracts does not require the adoption of new laws or regulations. Instead, one should adapt and, possibly, modify existing legal principles at the legislative and judicial levels to pave the way for the use of smart contracts and other new technologies. The system of contract law provides a sufficient framework for regulating transactions without the introduction of any new legal categories. We propose approaches to the legal definition of the smart contract and identify a set of problems that must be solved at the legislative and technical legal levels in order to implement smart contracts effectively in different spheres of life.
Downloads
References
Anisimov V.F., Sergevnin V.A. (2018) Robotics and automation: legal education and profession. Yuridicheskoye obrazovaniye i nauka, no 3, pp. 11–16 (in Russian)
Bashir I. (2017). Mastering blockchain. Birmingham: Packt, 531 p.
Chandler S. (2019) Smart contracts are no problem for the world’s legal systems, so long as they behave like legal contracts. Available at: https://cointelegraph.com/news/smart-contracts-are-no-problem-for-the-worlds-legal-systems-so-long-as-they-behave-like-legal-contracts(accessed: 10.06.2020)
Dolova M.O. (2019) The question of applicability of blockchain technology in the consideration of cases by courts. In: Yu. V. Truntsevsky (ed.) Legal regulation of contractual relations arising in connection with development of digital technologies (smart contracts). Round table proceedings. Moscow: Jurist, pp. 27–36 (in Russian)
Efimova L.G., Sizemova O.B. (2019) Legal nature of the smart contract. Bankovskoye pravo, no 1, pp. 23–30 (in Russian)
Gatteschi V. et al (2018) Blockchain and smart contracts for insurance: Is the technology mature enough? Future Internet, no 10, p. 20.
Golovanova N.A., Gravina A.A., Zaitsev O.A. (2019) Criminal activity in the conditions of digitalization. Moscow: Kontrakt, 212 p. (in Russian)
Grigg I. (2004) The Ricardian contract. In: Proceedings of the First IEEE International Workshop on Electronic Contracting, pр. 25–31.
Gromova E.A. (2018) Smart contracts in Russia: an attempt to determine their legal essence. Pravo i tsifrovaya ekonomika, no 2, pp. 34–37 (in Russian)
Ivanov A.Y. et al. (2017) Blockchain at the peak of HYIP: legal risks and opportunities. Moscow: Higher School of Economics Publishing House, 237 p. (in Russian)
Kalinina A.L. (2019) Issues of using smart contracts. In: Legal regulation of contractual relations arising in connection with development of digital technologies (smart contracts). Round table proceedings, pp. 37–45 (in Russian)
Kamalyan V.M. (2019) Concept and legal features of smart contracts. Yurist, no 4, pp. 20–27 (in Russian)
Khabrieva T.Y., Chernogor N.N. (2018) Law in the conditions of digital reality. Zhurnal rossiyskogo prava, no 1, pp. 85–102 (in Russian)
Khabrieva T.Y. (2018) Law before the challenge of digital reality. Zhurnal rossiyskogo prava, no 9, pp. 5–16 (in Russian)
Makarchuk N.V. (2019) Public law restrictions on the use of digital assets and technologies. Predprinimatel’skoye pravo, no 1, pp. 40–43 (in Russian)
Nagrodskaya V.B. (2019) New technologies (blockchain / artificial intelligence) at the service of law. Moscow: Prospekt, 128 p. (in Russian)
Navarro N. et al (2017) Inteligencia artificial. Valencia: Tirant, 293 p.
Nosov S.I. (2019) Law and informatization. Yurist, no 4, pp. 6–13 (in Russian)
Parfenov A.V., Shapovalov I.M., Valko D.V., Kirillov A.A. (2015) Logistics of e-commerce. Saint Petersburg: State Economic University, 79 p. (in Russian)
PerovV.A. (2017) Identification, qualification and organization of investigation of crimes committed with the use of cryptocurrency. Moscow: Yurlitinform, 177 p. (in Russian)
Popova E.M., Popov N.V. (2016) Blockchain as a driver of change in the banking sector]. Bankovskiye uslugi, no 12, pp. 9–14 (in Russian)
Rassolov I.M., Matytsina T.V., Yanenko M.B. (2006) Legal issues of Internet relations. Moscow: Yuniti, 165 p. (in Russian)
Ream J., Chu Y., Schatsky D. (2016) Upgrading blockchains: Smart contract use cases in industry. Deloitte University Press, no 4, pp. 1−11.
Savelyev A.I. (2016) Contract law 2.0: “Smart” contracts as the beginning of the end of classical contract law. Vestnik grazhdanskogo prava, no 3, pp. 32–60 (in Russian)
Savelyev A.I. (2017) Some legal aspects of using smart contracts and blockchain technologies under Russian law. Zakon, no 5, pp. 94–117 (in Russian)
Shaidullina V.K. (2019) Smart contracts on the financial market: research results. Sud’ya, no 2, pp. 21–23 (in Russian)
Sinitsyn S.A. (2019) The agreement: new aspects of legal regulation and interpretation. Zhurnal rossiyskogo prava, no 1, pp. 45–61 (in Russian)
Stark J. (2016) Making sense of blockchain smart contracts. Available at: https://www.coindesk.com/making-sense-smart-contracts/ (accessed: 20.05.2018)
Tjong Tjin Tai E. (2017) Formalizing contract law for smart contracts. Available at: https://ssrn.com/abstract=3038800 (accessed: 20.05.2018)
Volos A.A. (2018) Smart contracts and principles of civil law. Rossiyskaya yustitsiya, no 12, pp. 5–7 (in Russian)
Wattenhofer R. (2016) The science of the blockchain. Create Space Independent Publishing Platform, 131 p.
Yanenko M.B., Yanenko M.E. (2015) Methodology of elaborating marketing strategies in the conditions of using information and digital technologies. Saint Petersburg: State Economic University, pp. (in Russian)
Zemtsov A.N. (2016) Blockchain for all. Otkrytye sistemy, no 4, pp. 24–26 (in Russian)
Authors who publish with this journal agree to the Copyright Notice.
