Smart contracts. Part 3. The Basis of Digital Jurisdiction

Smart contracts. Part 1. When paper knows what you told it and does it.
Smart contracts. Part 2. From HYIP to reality

Ray Kurzweil , a well-known investor, philosopher and futurist, whose predictions about the development of technologies and social trends are listened to by the business community and the political elite, predicts the imminent end of the era of nation-states, as we know them. He believes that the fundamental particles of classical systems will soon be transformed, because technology contributes to the blurring of national borders. According to Kurzweil , we are moving towards the global world community:

“We are moving towards a world without borders, a global culture, a global legal system. National states are still strong, but they are gradually losing their strength. ”

* Last year's study of the analytical center Globalscan reports that for the first time in 15 years, the number of people who consider themselves citizens of the world, rather than a single country, has reached 49%.

Meanwhile, examples of public associations that do not fit into the boundaries of state formations are already emerging in the virtual space: free digital unions, decentralized communities, virtual cities and virtual states making the first attempts to establish new types of legal paradigms. Signs of the formation of digital jurisdiction are evident everywhere.

Against the background of globalization and digitization, the corporate environment stands out in particular, which, first of all, requires a legal framework to ensure guarantees of its functioning in the digital space. However, in the absence of a central responsibility guarantor, in the person of the state, in a decentralized environment, trust in the system should be automated, and the conditions of interactions and their consequences should be written at the code level.

What does it have to do with smart contracts?

What smart contracts are, why they are smart and good, is already widely known today: the invariance of transactions, the automation of business processes, trusting relationships without personal connections, transparency (and, if desired, privacy), the absence of intermediaries, high speed of implementation ... there are many of them. Read more about this in our previous articles:

Smart contracts. Part 1. When paper knows what you told it and does it.
Smart contracts. Part 2. From HYIP to reality

What prevents companies and public organizations from immediately introducing these useful innovations into their business processes and feeling their benefits?

1. Uncertainty about the perfect code: cases of previous hacks;
2. Conservatism, traditionalism, prejudices;
3. Lack of consistency with existing legislation.

The last obstacle, perhaps, is the most global problem voiced: the code can be improved, it is possible to work with prejudices. However, it is hardly worth waiting for the moment when the governments of all countries can come to a common understanding and regulatory policy regarding blockchain and smart contracts. In Russia, there is not even a definition of the concepts “blockchain” and “cryptocurrency” fixed at the official level. The lack of regulation at the state level is the main obstacle for the work of business with new technologies.

Gradually, the program code becomes a universal language and the basis for a new legal paradigm, the appearance of which is due to the need for participants to be able to resolve disputes, hedge risks and establish legal relations in the blockchain space. This is a reflection of blockchain community members on the subject of digitalization of reality.
A progressive society, if it wants to further develop technologies, must independently develop a new foundation and reach a public consensus confirming that the code is the law according to which it will be regulated.

For the full functioning of the cryptoeconomics of the future, a digital legal environment is needed, free from fraud, devoid of a centralized judicial system, the execution of judicial decisions in which is automated using smart contracts. In such an environment, the corporate sector is particularly in need, where risks are higher, responsibility is greater, and procedures are more complicated.

The basic element of the blockchain-jurisdiction is quite logical to become smart contracts - code fragments stored in the blockchain, with which you can exchange money, property, shares or other assets without resorting to the services of intermediaries.

Smart contracts have all chances to become the basis of all legal relations within the limits of digital jurisdiction, as well as the relationship of an individual with state institutions.

Smart Contracts in the Jincor Ecosystem

It all starts with ideas that are replaced by experiments. If the results of experiments demonstrate the viability of solutions, then the developments become market products with specific characteristics. The last stage is the formation around innovation of the legislative environment and regulatory procedures.

How to build regulation? Within the digital jurisdiction of Jincor, smart contracting will be available exclusively to identified users.

* Digital identification assigns to the system participant a unique code that stores some critical information about the user in an encrypted form, and allows you to identify the correspondence of the digital user with the real world.

In the blockchain world, as well as in the space of material reality, a spoiled reputation will be able to close many doors and harm the future development of unscrupulous counterparties.

The Jincor blockchain ecosystem is already experimenting and building digital jurisdiction for business, in which participating organizations can make secure cryptocurrency transactions, enter into smart contracts, use decentralized arbitration services and insure their cryptoactive assets and transactions without special technical knowledge. In one of the previous articles, we described in detail what a decentralized arbitration system might look like; now we will tell you more about the basic types of smart contracts in Jincor that are available to participants:

Jincor ico

On August 21 at 12:00 Moscow time, Jincor announces the launch of a pre-ICO campaign, under which investors will be able to purchase JCR tokens at a 50% discount on the price that will be available at the ICO stage. To not miss this event, subscribe to the newsletter with a notice on the website

* JCR tokens in the future will be needed by participants to make full use of the platform. Despite the fact that the basic functionality of the Jincor ecosystem will be free, some options, including opening enterprise cryptocurrency accounts, entering into smart contracts, financial instruments (letters of credit, collections, overdrafts, factoring), as well as arbitration, will be available to participants for tokens JCR.


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