FEATURES OF THE FORMATION AND IMPLEMENTATION OF SMART CONTRACTS IN UKRAINE

Abstract

The emergence of cryptocurrencies and blockchain technology, the development of information technologies and international electronic commerce have led to the formation of a new type of civil law contracts, namely smart contracts. The use of mathematical algorithms in the implementation of smart contracts contributes to reducing the costs of organizing business relations, speeding up the implementation of agreements between business partners and increasing the level of security in the process of their cooperation. Investigating the issue of conclusion and implementation of smart contracts, its key elements are given, namely: the parties to the contract, who, on the basis of an electronic digital signature, agree or reject previous agreements; the subject of the contract and the availability of tools necessary for its implementation; an algorithm that accurately describes the conditions for executing a smart contract; a decentralized platform in which the algorithm of the smart contract itself is written, the algorithm in which the specific conditions for the execution of the smart contract are described. The article highlights the program-coordinating, protective, guarantee and security functions of smart contracts. The comparative characteristics of a smart contract with a civil law contract are given. The main advantages and disadvantages of the formation and implementation of smart contracts in Ukraine are grouped. The conclusion of smart contracts in Ukraine entails certain risks associated with the legal regulation of such contracts, in particular when determining their legal status. A technology for the development and signing of a smart contract as an innovative tool for contractual relations has been formed, which provides for the implementation of the following stages: determining business conditions and requirements for a smart contract, choosing a blockchain platform, selecting tools for developing a smart contract, developing a smart contract and auditing smart contract, deploying and signing a smart contract. Smart contracts are successfully used in various fields, such as: international settlements, securities transactions, banking, real estate, international e-commerce, recruiting, insurance, marketing and logistics, public and administrative services, agricultural sector, energy, medicine, etc.