Creating markets in no-trust environments: The law and economics of smart contracts

Eenmaa, Helen; Schmidt-Kessen, María José

doi:10.1016/j.clsr.2018.09.003

Cited by 51 publications

(23 citation statements)

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“…With smart contracts, stakeholders' liabilities can be defined clearly and transparently. The legal nature and reliability of smart contracts and argue that they offer a much better solution than traditional contract law for facilitating trade [130]. A blockchain-enabled smart-contracts-based framework can derive the possible benefits of the supply chain process design [131].…”

Section: Smart Contractsmentioning

confidence: 99%

Blockchain Technology for Sustainable Supply Chain Management: A Systematic Literature Review and a Classification Framework

Paliwal¹,

Chandra²,

Sharma³

2020

Sustainability

180

190

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Through a systematic review of publications in reputed peer-reviewed journals, this paper investigates the role of blockchain technology in sustainable supply chain management. It uses the What, Who, Where, When, How, and Why (5W+1H) pattern to formulate research objectives and questions. The review considers publications since 2015, and it includes 187 papers published in 2017, 2018, 2019, and the early part of 2020, since no significant publications were found in the year 2015 or 2016 on this subject. It proposes a reusable classification framework—emerging technology literature classification level (ETLCL) framework—based on grounded theory and the technology readiness level for conducting literature reviews in various focus areas of an emerging technology. Subsequently, the study uses ETLCL to classify the literature on our focus area. The results show traceability and transparency as the key benefits of applying blockchain technology. They also indicate a heightened interest in blockchain-based information systems for sustainable supply chain management starting since 2017. This paper offers invaluable insights for managers and leaders who envision sustainability as an essential component of their business. The findings demonstrate the disruptive power and role of blockchain-based information systems. Given the relative novelty of the topic and its scattered literature, the paper helps practitioners examining its various aspects by directing them to the right information sources.

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Section: Smart Contractsmentioning

confidence: 99%

Blockchain Technology for Sustainable Supply Chain Management: A Systematic Literature Review and a Classification Framework

Paliwal¹,

Chandra²,

Sharma³

2020

Sustainability

180

190

View full text Add to dashboard Cite

show abstract

“…The issue of privacy has been at the center of efforts from both industry players and academic researchers. For instance, to cater to the specific enterprise needs of large financial institutions (c3) , the bank JP Morgan has developed an enterprise layer on top of the Ethereum protocol, named Quorum (Eenmaa-Dimitrieva and Schmidt-Kessen, 2019). The standard was open-sourced to the public in November 2016, to encourage widespread adoption with a growing community of other financial institutions.…”

Section: Discussion Of Remedies and Implicationsmentioning

confidence: 99%

“…First, economic issues have been raised by various references; for instance, Levy (2017) puts an emphasis on the expected social implications, while Cong and He (2019) and Hans et al (2017) expect considerable changes in the market structure. One central concept is the notion of trust and the related question how to create market economies in an anonymous, no-trust environment (Eenmaa-Dimitrieva and Schmidt-Kessen, 2019).…”

Section: It Background On Smart Contractsmentioning

confidence: 99%

Is code law? Current legal and technical adoption issues and remedies for blockchain-enabled smart contracts

Drummer

Neumann

2020

Journal of Information Technology

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Blockchain technology has enabled so-called smart contracts between different parties on a decentralized network. These self-enforceable and self-executable computerized contracts could initiate a fundamental paradigm shift in the understanding and functioning of our legal practices. Opportunities for their application are increasingly understood, and numerous tests of feasibility have been completed. However, only very few use cases have yet been implemented at scale. This article—as the first of its kind—comprehensively analyzes the underlying challenges and locates a key reason for the slow adoption in the discrepancy between legal requirements and IT capabilities. Our work combines a wide range of academic sources and interviews with 30 domain experts from IT, the legal domain and private industry. First, we establish that smart contracts still fall within the boundaries of the general legal framework. We then systematically dissect current shortcomings of smart contracts on three distinct levels, namely, (1) how smart contracts are likely to cause conflicts with existing laws, (2) how smart contracts are intrinsically limited on an individual contract level and (3) how they are impeded by their current technical design. Across those levels, we dissect 20 distinct issues concerning the current implementation of smart contracts for which we derive potential remedies. We further outline implications for policy-makers as well as IT management, and examine how information systems research can play an important role in advancing smart contracts. Finally, we show how managerial and organizational issues might represent an ongoing challenge for the widespread adoption of smart contracts.

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“…Smart contracts are defined by Werbach and Cornell as 'self-executing digital transactions using decentralized cryptographic mechanisms for enforcement' 2 . By automating performance of parties' obligations upon the fulfillment of specific technical conditions, smart contracts have been said to 'create trust in no-trust environments' 3 , since parties are literally bound and may not renege on their promises. The same principles of contract law apply to smart contracts 4it is trite law that contracts do not need to be written to be enforceable, they are valid as long as they contain the essential elements of contract formation.…”

mentioning

confidence: 99%

502 Bad Gateway: Rebooting Smart Contracts

Lim¹

2020

Legal Information Management

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Creating markets in no-trust environments: The law and economics of smart contracts

Cited by 51 publications

References 0 publications

Blockchain Technology for Sustainable Supply Chain Management: A Systematic Literature Review and a Classification Framework

Blockchain Technology for Sustainable Supply Chain Management: A Systematic Literature Review and a Classification Framework

Is code law? Current legal and technical adoption issues and remedies for blockchain-enabled smart contracts

502 Bad Gateway: Rebooting Smart Contracts

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