Smart contracts - what legal gaps affect them?

in bitcoin •  last year 

Smart contract based on blockchain technology allows you to save contractual terms in the form of a code. Terminology is a noteworthy issue - is the smart contract really smart? Intelligent technologies are technologies that use artificial intelligence, able to learn - to process data and use it in the future in a creative way. In the case of smart contracts, we refer to a set of conditional statements stored in the form of an algorithm.

However, it is worth considering how civil law is applicable to this type of construction.
The network (usually Ethereum) allows you to write in a decentralized database. The contract will be concluded after meeting certain conditions and also performed automatically. By coding contractual terms, the parties are deprived of the ability to decide for themselves of the mutual benefits of the parties. Execution proceedings are unnecessary. Here, the website decides to decide whether it wants to execute the contract at all. Perhaps in the case of classically concluded contracts, the party would decide not to perform the contract for strategic reasons under the circumstances, only to pay a contractual penalty. It seems that the parties' just agreeing to conclude a contract that will be encoded in the form of a smart contract is tantamount to clauses that can be used to simplify the enforcement of due benefits.

Smart contract, based on blockchain technology, allows you to enter into a form of a code. Terminology is a noteworthy issue - is the smart contract really smart? Intelligent technologies are technologies that can be used in the future in a creative way. In the case of smart contracts, we shall provide information on the algorithm.

However, it is worth considering the type of construction.
The network (usually Ethereum) allows you to write in a decentralized database. The contract will be completed. To coding contractual terms, the parties are deprived of the ability to decide for themselves. Execution proceedings are unnecessary. Here, the website decides to decide whether it wants to execute the contract at all. Perhaps in the case of the classically removable contract, the party would decide on the contract for the strategic reasons under the circumstances. It seems to be a part of the contract.

When analyzing the private aspects of smart contracts, the issue of jurisdiction - private international law plays an important role. The place of the contract and the place of its execution may determine the jurisdiction - the law applicable to the contract. A smart contract is based on a record in a decentralized database. Decentralization means being in many places at the same time. The lack of determination of jurisdiction in the initial phase of concluding the contract, preceding the encoding in the form of a smart contract, may pose a threat to the determination of jurisdiction. Being "everywhere" can mean "nowhere". The doctrine has already made considerations related to the establishment of jurisdiction - whether a smart contract is a being outside the law (alegality), or is associated with the entity responsible for blockchain. Another proposed solution is to treat smart contracts as computer programs - maybe this license will lead us to the applicable law?

Declarations of will of the parties when concluding the contract can be submitted freely. Perhaps the use of a smart contract is the phase of concluding a contract. As in the case of ICO issues, we are dealing with the description in the "white paper" conditions that investors agree to. Joining the contract may mean consent to a specific jurisdiction. The declaration of will may be submitted in any form so as to reflect the intention to shape the parties' mutual rights and obligations (Article 60 of the CC). Undoubtedly, you can place a contract in the blockchain space as a consensus of entities equipped with legal capacity. Far-reaching postulates of giving legal personality to algorithms or computers can wait long for the legislator's response.

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