Increasing standardization for smart(er) contracts

Abstract

Legal standardization traditionally played an important role in contractual relations. With technological and commercial development and expansion of trade from the individual and collective levels to internationalization, it became necessary to create a set of standards to keep pace with this development and facilitate the contractual process. Although smart contracts are considered a leap in the contractual relationship, it cannot be overlooked that these contracts share many characteristics with traditional contracts. To gain a greater position in the global market, smart contracts also need to be well functioning and efficient. In this context, the article tackles the phenomenon of legal standardization and identifies the main weaknesses of smart contracts—to answer two crucial questions: how can these contracts be smarter, and how should we employ standardization to ensure their efficiency?