Analysis of Contracts in Various Formats of Blockchain

Hegadekatti, Kartik (2016): Analysis of Contracts in Various Formats of Blockchain. Published in: Contracts & Commercial Law eJournal , Vol. 18, No. 12 (1 March 2017)

Abstract

One of the important features of Blockchain is that it allows the hosting and execution of contracts. Such a contract in the digital world is known as a Smart Contract. But the process and consequences of a contract vary radically from one format of Blockchain to another. One of the formats (and the most common at present) is the Unregulated Blockchain (like Bitcoin and Ethereum) with no government supervision whatsoever. Another format is the Controlled Blockchain which is managed and guaranteed by the Government. It is this difference that is vital in understanding the impacts and consequences of entering into and abiding by Smart Contracts.

Firstly, the concept of cryptocurrencies (also referred to as cryptocoins in this paper) is explained. Then the concept of Regulated and Sovereign Backed Cryptocurrencies (RSBCs) is discussed. Later on, I explain how contracts vary between the two Blockchain formats. Finally, the paper concludes as to how smart contracts can be best executed and on which format of Blockchain.

• Item Type: MPRA Paper
• Language: English
• Keywords: blockchain, bitcoin, cryptocurrency, RSBC, nationcoins, K-Y Protocol
• Subjects: D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D86 - Economics of Contract: Theory; J - Labor and Demographic Economics > J5 - Labor-Management Relations, Trade Unions, and Collective Bargaining > J52 - Dispute Resolution: Strikes, Arbitration, and Mediation ; Collective Bargaining; K - Law and Economics > K1 - Basic Areas of Law > K12 - Contract Law; L - Industrial Organization > L1 - Market Structure, Firm Strategy, and Market Performance > L14 - Transactional Relationships ; Contracts and Reputation ; Networks; L - Industrial Organization > L2 - Firm Objectives, Organization, and Behavior > L24 - Contracting Out ; Joint Ventures ; Technology Licensing; L - Industrial Organization > L3 - Nonprofit Organizations and Public Enterprise > L33 - Comparison of Public and Private Enterprises and Nonprofit Institutions ; Privatization ; Contracting Out

References

[1] Hegadekatti, Kartik and S G, Yatish, The K-Y Protocol: The First Protocol for the Regulation of Crypto Currencies (E.G.-Bitcoin) (February 13, 2016).

[2] Hegadekatti, Kartik and S G, Yatish, Roadmap for a Controlled Block Chain Architecture (August 13, 2016).

[3] Enabling Blockchain Innovations with Pegged Sidechains- Adam Back, Matt Corallo, Luke Dashjr, Mark Friedenbach, Gregory Maxwell, Andrew Miller, Andrew Poelstra, Jorge Timón, and Pieter Wuille. 2014-10-22 (commit 5620e43)