The concept and specifics of smart contracts

Abstract

This article discusses the role of smart contracts in civil law relations and issues of legal regulation of their application. A smart contract is an innovative tool based on blockchain technology that automates agreements between the parties. The study discussed the advantages of smart contracts, including decentralization, reliability and transparency, as well as the limitations of their full-fledged legal recognition in the Republic of Kazakhstan. In addition, the international experience and potential of using smart contracts in Kazakhstan were reviewed, and recommendations were given on their integration into the legal system. It was noted that amendments should be made to national legislation to recognize a Smart contract on a legal basis, in particular, the adaptation of the Civil Code of the Republic of Kazakhstan and other legislative acts. This study shows that smart contracts require a combination of legal, economic, and technological changes to facilitate their wider use in civil law relations.