Smart contracts as a new challenge for the legal system

Abstract

With the development of new technologies and the ever-galloping digital revolution, there is a sudden progression of relationships in common parlance, including contracts. New technologies are becoming an inseparable part of everyday life, but at the same time quite a legal challenge for legislators. In recent years, cutting-edge blockchain technology has been gaining popularity, and with it, smart contracts, which are a kind of computer programme that allows automatic performance or documentation according to the content of the contract. Currently, smart contracts appear as one attempt to replace traditional contracts with modern solutions based on blockchain technology as an enabler. These ‘smart contracts’ are increasingly being used in socio-economic transactions, and this inevitably involves dilemmas in the legal field. The article discusses the essence, characteristics of smart contracts and briefly reflects on their place in the legal system.