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Towards Standardized Regulations for Block Chain Smart Contracts: Insights from Delphi and SWARA Analysis

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arXiv:2403.19051v1 Announce Type: new
Abstract: The rise of digital currency and the public ledger Block Chain has led to the development of a new type of electronic contract known as "smart contracts." For these contracts to be considered valid, they must adhere to traditional contract rules and be concluded without any impediments. Once written, encrypted, and signed, smart contracts are recorded in the Block Chain Ledger, providing transparent and secure record-keeping. Smart contracts offer several benefits, including their ability to execute automatically without requiring human intervention, their provision of public visibility of contract provisions on the Block Chain, their avoidance of financial crimes like Money Laundering, and their prevention of contract abuses. However, disputes arising from smart contracts still require human intervention, presenting unique challenges in enforcing these contracts, such as evidentiary issues, enforceability of waivers of defenses, and jurisdictional and choice-of-law considerations. Due to the novel nature of smart contracts, there are currently no standardized regulations that apply to them. Countries that have approved them have turned to customary law to legitimize their use. The Delphi method was used to identify critical success factors for applying blockchain transactions in a manufacturing company. Stepwise Weight Assessment Ratio Analysis (SWARA) was then utilized to determine the most influential factors. The proposed methodology was implemented, and results show that the most influential factors for the successful application of blockchain transactions as smart contracts in a manufacturing company are: turnover, the counter argument, vision, components for building, and system outcome quality. Conversely, connections with government entities and subcontractors, and the guarantee of quality have the least influence on successful implementation.

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