The Minimum Hybrid Contract (MHC): Combining legal and blockchain smart
contracts
- URL: http://arxiv.org/abs/2002.06850v1
- Date: Mon, 17 Feb 2020 09:19:20 GMT
- Title: The Minimum Hybrid Contract (MHC): Combining legal and blockchain smart
contracts
- Authors: J{\o}rgen Svennevik Notland, Jakob Svennevik Notland, Donn Morrison
- Abstract summary: Corruption through contract fraud is often conducted by withholding and/or altering financial information.
We propose the Minimum Hybrid Contract (MHC), with the aim of 1) auditability, 2) transparency, and 3) immutability to the contract's financial transactions.
Secure peer-to-peer financial transactions, transparency, and cost accounting are automated by the smart contract, and legal issues or disputes are carried out by civil courts.
- Score: 0.0
- License: http://arxiv.org/licenses/nonexclusive-distrib/1.0/
- Abstract: Corruption is a major global financial problem with billions of dollars
rendered lost or unaccountable annually. Corruption through contract fraud is
often conducted by withholding and/or altering financial information. When such
scandals are investigated by authorities, financial and legal documents are
usually altered to conceal the paper trail.
Smart contracts have emerged in recent years and appear promising for
applications such as legal contracts where transparency is critical and of
public interest. Transparency and auditability are inherent because smart
contracts execute operations on the blockchain, a distributed public ledger.
In this paper, we propose the Minimum Hybrid Contract (MHC), with the aim of
introducing 1) auditability, 2) transparency, and 3) immutability to the
contract's financial transactions. The MHC comprises an online smart contract
and an offline traditional legal contract. where the two are immutably linked.
Secure peer-to-peer financial transactions, transparency, and cost accounting
are automated by the smart contract, and legal issues or disputes are carried
out by civil courts. The reliance on established legal processes facilitates an
appropriate adoption of smart contracts in traditional contracts.
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