Smart Contracts and International Law
The increasingly connected and digitally complex world brings a new reality to international contracts, the so-called international smart contracts .
These contracts are self-executing, they follow a programming logic, if the parties choose an option X, the contract self-executes at Y.
With the creation of Blockchain, this type of contract has become the subject of speculation regarding the future of contracts.
Blockchain technology supposedly could eliminate trust in a third party. The Blockchain generates several encrypted keys(Hash) that are shared with a large number of users who automatically verify the legitimacy of the contract ( lockstep system).
In this way, Blockchain could supposedly create a kind of "digital institutional security", totally autonomous and decentralised. There are several criticisms of this model, and those who say that the model will not replace the written model, but only complement it.
A kind of "hybrid contract". The complexity and "conflicts" in the countries' legislation make the creation of international smart contracts a challenge for legislators and IT professionals.
Translating these complex international contracts into programming code is a complex task. However, increasingly advanced machinelearning technologies have created greater possibilities in the creation of more complex smart contracts , for example: to serve sectors such as oil and gas.
The pandemic of the new coronavirus, accelerated the process of migration to digital services. Thus, digital legislative tools, digital legislation and adaptation of legislation to a technological reality, were widely discussed issues in this period.
Smart contracts can be optimised by software that guarantees the quality and fulfilment of the contract (its contractual performance).
We do not know for sure if smart contracts will replace traditional contracts, nor do we know if Blockchain technology can really deliver what it promises with primacy.
But, we know that smart contracts are a reality and, even if they do not supplant traditional contracts, they are going to be widely used in hybrid form.
Internationalists and legislators will have to be increasingly integrated with new information technologies.
Luiz Leandro Garcia
Monitor of the Postgraduate Course in International Law at CEDIN
Sources:
https://revistas.pucsp.br/DIGE/article/view/44018/29208
https://www.scielo.br/scielo.php?script=sci_arttext&pid=S1415-65552018000600903
https://www.mantralabsglobal.com/blog/smart-contracts-in-india/