Chantal Bomprezzi, ‘From Trust in the Contracting Party to Trust in the Code in Contract Performance’

Smart contracts take advantage of the decentralised and immutable nature of blockchain technology. When block-chain-based smart contracts are used to automate the performance of contracts, it is affirmed that the obliged party cannot influence the execution of the contract. There is a shift from trust in the other party to trust in the code. Therefore, it is wondered whether blockchain technology may foster consumers’ trust in the right performance of B2C contracts and enhance consumers’ protection towards businesses. The work tries to answer this research question. It aims to verify if blockchain-based smart contracts exclude non-performance and prevent businesses from exercising a kind of control over the performance of the contract. To this end, it takes into consideration some hypothetical scenarios of use of smart contracts and the blockchain for the automatic performance of B2C contracts.

Chantal Bomprezzi, From Trust in the Contracting Party to Trust in the Code in Contract Performance, Journal of European Consumer and Market Law, volume 10, issue 4 (2021) pp 148-159.

First posted 2021-08-31 18:00:16

Leave a Reply