Study Of Establishment Rules Of Smart Contract

Smart contract is a new development of contract in the era of blockchain,which has been widely applied to finance,logistics,intellectual property,government affairs and other fields in solving trust problems and improving the efficiency of contract execution.The research on the legal issues of smart contract,especially the determination rules for the establishment of smart contract is related to the reshaping of the Internet economic model and pattern of digital economy by blockchain technology,which is a key factor that can affect the new round of political and economic power game between countries.As a prominent country in developing the patents and industries of blockchain,China should actively respond to legal demands of adjusting the contract legislations arose by technical innovation,and set up a complete legal rule system of determining the establishment of smart contract with the purposes of becoming an international benchmarking in the field of smart contract and at the same time promoting the development of real economy within the scope of the legal order,To enhancing China’s digital economy capacity and reconstruct the new international political and economic order driven by blockchain technology.In addition to the introduction and conclusion,the paper contains six chapters:Chapter one introduces the “smart contracts challenge the establishment rules of traditional contracts”.By analyzing the technical,economic and theoretical basis of the emergence and development of smart contract,it is clear that the emergence of smart contract has profound motivation and social demand.The establishment of smart contracts cannot directly apply the provisions of the traditional law on the establishment of contracts,and there are mainly difficulties in legal positioning,subject identification,expression of intention judgment and form identification.By analyzing the challenges posed by smart contracts to the establishment of traditional contracts,this part aims to provide a realistic and necessary basis for the following three core issues and construction of countermeasures.Chapter two refers to “the legal definition and types of smart contract”.Compared with “smart contract” and “legal smart contract”,the appellation of smart contract is more consistent with the legal nature and technical characteristics.It is advisable to define smart contract from the legal perspective as “a contract running on the blockchain that the parties agree on the rights and obligations of transfer of digital assets for the performance of the basic contract”.According to the stipulation of Civil Code,Smart contracts meet the element demands of consensus and form.Smart contracts can be divided into different types according to the payment object issuing subject,whether the effectiveness is determined by the achievement of specific conditions,whether the contract content is predetermined by one party,and whether the consensus is completed with the help of blockchain technology.The legal definition of smart contract is the start and basis for studying the legal system of smart contract,which lays a foundation for the construction of the three core systems of smart contract establishment as follows.The third chapter introduces “subject rules for the establishment of smart contracts”.The subjects of smart contract include parties and related subjects represented by blockchain platform providers,smart contract providers and transaction validators.Based on the anonymity of the subject and for the purpose of guarding transaction security,it is suggested to take "presumption of full capacity and proof overturning" as the paradigm for the determination of subjects’ civil capacity.As far as the real identity is concerned,it is advised to regard “clear subject” as the main standard,and ordinal apply to “the controller of private key” and the other existed stipulations such as delegation and crime to facilitate transactions.Compared with traditional contract subjects,smart contract subjects have the characteristics as concealment and untraceable,and the establishment of subject identification rules lays a foundation for the identification of smart contract parties and the affirmation of relief objects.Chapter four describes “declaration of intention rules for the establishment of smart contract”.Considering of the basic theory of the expression of intention and the tension between the expression of intention in different languages,objectivism is adopted as the basic principle for the authenticity of the expression of intention in smart contracts,and "the content of the expression of intention can be clearly and specifically known to the counterpart" is taken as the basis for the determination of the certainty of the expression of intention.Offer of smart contract refers to the non-conversational expression of intention made by the counterpart,and the effective rules are divided into two different types according to whether the counterpart of the offer is specific or not,and adapt to the different standards of effective time in separate which can be described as "when the data message enters the specific system designated by the counterpart" and "when the announcement is issued" respectively.Promise of smart contract belongs to the expression of intention made in the form of express notification,which applies to the Received the Letter of Acceptance.As for as the time for the promise is completed and known to the other party is concerned.It is suggested to take the time when the other party receives the promise as the time node.This part is an important basis for judging the authenticity of the expression of intention,confirming the consensus of the smart contract and confirming the establishment of the contract.The fifth chapter refers to the “written form rules for the establishment of smart contract”.The existence form of encrypted code of smart contract conforms to the intrinsic meaning of contract form about fixing and recording consensus and the legal meaning of establishing contract rights and obligations established by Civil Code,it is a legal contract form.The existence form of the encrypted code belongs to the data message,which can show the contents in a tangible way and can be investigated and used at any time.It conforms to the requirements of the confirmation of the form of written contract,which is conducive to the confirmation of the validity and enforceability of smart contracts.Chapter six introduces the “Legal Strategies of the Establishment of Smart Contract”.In terms of the responding modes for the establishment of smart contracts,the world has formed three representative patterns which can be described as Legislation Model represented by the United States,Contract Interpretation Model represented by the United Kingdom,and Policy-Oriented Model represented by China.The establishment and determination of smart contracts in China should consist of three dimensions,which namely the transformation of responding mode from Policy-Oriented Model to Contract Interpretation Model,the establishment of three-level in parallel in the dimension of thinking,and the exploration of all-round legal application rule system in the dimension of application.The improvement of smart contract rules of establishment should start from one point and three aspects,which including the basic point of the legal status and three core rules of smart contract in aspects of establishment should be clarified of no doubt.After that,a complete and systematic rule system of smart contract will be formed.This part contributes China’s wisdom as a great power in the identification of establishment of smart contracts through the construction of a system of smart contract rules with Chinese characteristics.