Analysis On Legal Regulation Of Smart Contract

Since China banned ICO(Initial Coin Offering)in 2017,Blockchain technology 1.0 represented by Bitcoin,has been on the wane in China,while Blockchain technology 2.0 represented by Smart Contract,is in a heated discussion.In 2019,The Hangzhou Court of the Internet officially applied Smart Contract to create an automated judicial process from signing the contract,performing the contract,registering the case for breaching of the contract to trial and execution of breaching the contract.By comparing and studying the legislative practice of Smart Contract in the United States,the relevant legal statements or report of Smart Contract in the UK and the European Union,this paper aims to analyze the legal attributes,potential problems,legal remedies and supervision of Smart Contract and put forward problems and give suggestions relatively.Through research and analysis,this paper believes that Smart Contract is an automatic execution program that writes the rights and obligations of the parties through programming,which would be released on the blockchain after the parties signing electronically.Smart Contract can be regarded as a valid contract,while it can also be regarded as a mean of execution.The role of the Smart Contract depends on whether it meets the constitutive elements of the valid contract,namely,persons with capacity for civil conduct reach a consensus on the offer and acceptance,which is not in violation of the legal or mandatory provisions as well as public order and good custom.Because of its automatic execution,what if Smart Contract leads to the situation that is difficult to be remedied in the case of force majeure and change of circumstances,which his paper proposes to set up a special reset process in programming to solve.Whether it can still be accord with the parties’ true representation of meaning when it is translated from natural language into code.This article holds that the textual ambiguity of code is less likely to be caused by the code when compared to the natural language.To clarify the legal responsibility of it,the industry rules of translation service providers is needed.The regulation of Smart Contract on the one hand can be built by improving the legislative and judicial interpretation of the nature,effectiveness,remedies or limitation of Smart Contract,on the other hand the establishment of legal block chain would also help.