Smart contracts, self-executing programs stored and activated by predefined conditions in a distributed registry, secure contractual obligations. They ensure compliance with commitments in
preprogrammed terms, linking digital assets and allowing transfers or guarantees according to the terms of the contract.
These contracts enable the collateralization of digital assets, blocking their availability on the platform that executes the collateralization. After predefined events, the smart contract is executed as scheduled, returning control to the holder in case of compliance or transferring it to the successful tenderer in case of non-compliance, as stipulated.
The execution follows programmed terms, but from the legal perspective, questions arise:
– Is controlling the digital asset equivalent to the possession necessary for the creation of a garment (art. 1863 CC)?
– Is the timestamp of the DLT on the DeFi platform equivalent to the requirement of a public instrument for effectiveness against third parties (art. 1865 CC)?
– Is execution according to the terms agreed sufficient for the transfer of ownership to the acquirer?
Implementation under the established agreements raises the fundamental question: is it sufficient for the transfer of ownership to the acquirer? These legal challenges underline the need for an updated and specific regulatory framework to address the complexity of smart contracts and their application in the legal environment, thus ensuring consistency and certainty in these digital transactions.
