smart contract ЕСЕ

Smart contracts as an innovative legal tool

Manzar Mammadova, 111i, KNEU


A smart contract is an agreement between people or organizations, which is in a form of a program code that runs automatically and receives all the necessary data through so-called “oracles” – programs that provide communication between the real and the digital world.

Rather, smart contracts should be referred to as a blockchain because today, such contracts are implemented through blockchain, and if you go into detail, perhaps 99% of smart contracts should be called ethereum contracts, since they are created on the air (ether- cryptocurrency).

business law smart contract

Smart contracts. Pros and cons.

Yelyzaveta Naumova, ME-110i, KNEU

In the age of high technology, the trend of smart is very relevant. Smart contracts are a very contested topic.

A smart contract has huge advantages over the usual one. First of all, it’s his defense. The system is structured in such a way that the parties to the treaty and their resources are controlled and protected. Participants in this process may not be concerned about the correctness of the obligations, as if the conditions are not met, the contract will be cancelled. In addition, the use of smart contracts can eliminate the need for intermediaries, significantly reducing operating costs. This is a huge advantage of this type of contract. A smart contract can be defined as a tool that formalizes and protects computer networks by combining protocols with the user interface.

Judith Rirearson is not sure that such contracts will someday replace the usual ones, but everything is interchangeable, especially it can help optimize the state system. The information is more secure and more accurate, thanks to automatic input. In addition, smart contracts allow you to execute transactions without additional persons, i.e. intermediaries. All documents are encrypted and stored in the registry, which excludes forgery or loss of these documents.