Smart Contracts: Legal Agreements for the Block Chain

Smart contracts are a new kind of electronic contract concluded in the public ledger Block Chain and benefiting from digital cryptocurrencies (bitcoin). The conclusion of these contracts should be in accordance with the requirements of the conclusion of the traditional contracts and the absence of barriers to the conclusion of those contracts. These contracts are ratificated in writing form and are signed using the encryption technology, then they are presented in Block Chain Ledger. One of the most important features of smart contracts is the self-execution of the implementation of the contract without human intervention, transparency in the supplying of contract clauses in the Block Chain for public viewing, the impossibility of a change with the abuses of the terms of the contract in the Block Chain and the prevention of financial crimes such as Money Laundering. They may present special challenges in such enforcement, including evidentiary issues, enforceability of waivers of defenses, and jurisdictional and choice-of-law questions, in addition to the fact that, despite the existence of self-execution, human intervention must be needed to resolve the disputes arising from these contracts. Due to the new technology of these contracts, there are still no specific laws regarding them in the legal systems, and their adopted countries apply traditional rules and principles to justify their legitimacy with customary laws.