Legal Status and Effects of Smart Contracts

Abstract

Smart Contracts are a technology derived from the ramification of the Internet, whose impact on Law through its use alongside blockchain, is to constitute an alternative to the traditional mechanisms of formalizing relationships. Incorporating all the main objectives of contract design, but reducing their transactional costs.

Considering that its protocols fulfill with all the elements for an obligation to exist. Its practical usages consist of hosting and self-executing the encoding of the rendering of a legal act that generates obligations, whose conditions have an algorithmically determinable solution. And where the object of these renderings, will handle digital assets.

The capacity of the institution to serve as a tool, for the embodiment of declarations of will aimed at producing legal effects, needs for its legal status to be classified withing a broad concept, being that of consensus mechanisms the most suitable for this purpose.