The question asks if new laws or regulations are necessary to govern smart contracts that utilize such emerging technologies as AI, large language models, quantum computing, voice user interfaces, IoT, etc. Essentially, we are exploring the regulatory landscape surrounding smart contracts, particularly those incorporating new and innovative tech.
Additional aspects to consider:
- Specific emerging technologies involved and their potential implications for smart contracts.
- Existing legal frameworks in different jurisdictions and their adequacy for these scenarios.
- Balancing innovation with necessary safeguards to protect individuals and uphold ethical standards.
Dear Artem Arakcheev ,
Traditionally, a contract carries a legal basis in form of agreement/ commitment over the rights and obligations (involving transfer of goods or services) that operates between two or more parties. It may (optional) delineate the details of the scenario when there is a breach of contract.
Ideally, the legislative law dealing with contract should be kept technology independent. However, this approach may become difficult to sustain as we move towards 'smart contract' through the enhanced use of emerging technologies. A few possible reasons are as follows:-
(i) the legal instrument itself move from command and control to code form of regulation.
(ii) the definition and nature of the parties involved in the contract diversify to include virtual / technology agent and those from different jurisdiction.
(iii) the definitions of the legal terms and human value system change
(iv) [may add a few more]
Thanks for answering, Brajesh Mishra.
What are the additional possible reasons?
I started to think about a thought experiment in which 2 people have invented a completely new language (plain and/or programming) and wrote a contract in that language. While no one else can read that language, that would be a valid contract if it satisfies all the requirements such as consideration, offer and acceptance, legal purpose, capable parties, mutual assent, etc. (depending on the jurisdiction). The new language can be translated into a plain language that can be understood.
Dear Brajesh Mishra,
The definitions of the legal terms may evolve significantly when transitioning to smart contracts. Imagine, that each legal term could be defined in an Oracle (e.g., database) in the form of words or functions. Each jurisdiction may have its own Oracle, that defines the legal terms. The terms can change over time, but the oracle maintains a history of the definitions. Another Oracle could give a system of values. The Oracles have characteristics of reliability, cybersecurity, scalability, data privacy, accessibility, etc. I am curious, how would the oracles need to be regulated if they were operated by companies? What if different Oracles give different definitions of the legal terms at the same time?
Dear Artem Arakcheev ,
It is also important to differentiate and clearly define (or adopt the existing definitions of) the terms/ constructs relevant to the research interest area. For instance, policy, law, regulations, etc. in this case.
Secondly, what is under focus? (i) laws / regulations governing smart contracts that utilize emerging technologies OR (ii) laws / regulations governing contracts that deals with the complexities involving emerging technologies. The evolution of legal terms in the contracts/smart contracts may differ.
Oracle scenario - the complexity may be taken care of through technical regulation. The technical regulation may rely on Standarization approach to ensure interoperability of smart contracts among the oracles.
Dear Brajesh Mishra,
Thanks for your ideas. I focus on the scenario (i) governing smart contracts. For the main purpose of the research, I use the relevant law terms. Most of the research questions are about law and technology. A couple of the research questions are related to regulations. I am curious about a broader perspective on smart contracts to look for business opportunities.
Would you be interested in talking further on an interview?
Dear Artem Arakcheev , I would be happy to interact with you on this - Have shared the details.