Smart contracts are computer programs that facilitate, verify, or enforce the
negotiation or performance of an agreement. Smart contracts can manage the
creation and transfer of value, including currency, shares in a company or real
estate without the need for third parties. They are self-executing contracts
that run on distributed ledgers and generate automated compliance or enforcement
Smart contracts are akin to the vending machine, where a user places his/her
money and gets some products in return.
The machines are self-executing and can be used for anything from sending money,
shares or property; to exchanging goods and services.
Smart contracts have been around since 2009 when Nick Szabo first described them
as "a set of promises between parties that are enforceable by law" (1). In order
to understand how smart contracts work you need knowledge about two things:
firstly, what they mean when we say something is "smart" or not; secondly how
they work using code which runs on computers called "nodes".
The smart contract is self-executing but only after certain conditions have
been fulfilled by the members of a blockchain network.
The smart contract is a computer protocol intended to digitally facilitate,
verify, or enforce the negotiation or performance of a contract. A smart
contract has two essential components: code and data. The code contains
instructions for performing various tasks such as transferring funds between two
parties; storing data about payments; and making decisions based on prior
The data includes information such as who owns what assets and when they were
created (the state of those assets at any moment in time). This enables the
execution of transactions without having to trust third parties like banks or
governments with maintaining records about these transactions.
With the technology evolving at the rate of knots, there has been an
increasing buzz about smart contracts with Artificial Intelligence (AI).
AI has been used to generate smart contracts that are legally binding and
The legal questions about the use of AI in this way are being answered by
lawyers, who are looking at how to ensure that the contract can be used properly
is a law firm that uses AI to process data. The firm's
system, called AI-assisted legal research, allows clients to directly email the
firm website and get an automated response based on keywords in their query. The
system analyzes large volumes of court documents, case law and other relevant
information about specific topics. This means that if you have a question about
your legal rights or obligations under certain laws or regulations, Dua
Associates can provide you with an answer within seconds.
Advani & Co
is a law firm in India and they are working on a system where
people can upload their legal documents to receive automated responses based on
a keyword search within that document. This is an example of how AI is being
used in law firms in India.
AI for smart contracts is a new concept that will be challenging for many
reasons. First, it's not clear how the law will treat AI-based smart contracts
in the future.
Legal Status of Smart Contracts In India
- could a court force an attacker to pay out damages if they broke their
- Second, there are technical challenges to building these kinds of
systems�for example, how do you get all the data needed from various sources
and make sure it all fits together correctly?
- Thirdly and most importantly: ethical issues surrounding such technology
as well as legal ones must be considered before building any type of system
like this one (or any other!).
Smart contracts are legal in India and the United States. They can be used for
many different purposes, but one of the most common is to create a legally
binding agreement between two parties.
In India, smart contracts have been used since 2008 when they were first
implemented by Jyoti Andrade's company SmartKiosk Software Pvt Ltd who created
an e-commerce platform called Kiosk Solutions Pvt Ltd that uses a smart contract
system called "VestedEthereum" which uses Ethereum as its blockchain platform.
Since then, there have been several other implementations of this technology
globally including an Indian startup called Cappasity (which recently raised $15
million USD through an ICO).
Information Technology (Amendment) act 2008 has made provisions for recognition
of the electronic documents, contracts and other legal instruments. Under the
amended act, "Electronic Record" may be produced as evidence before any court,
tribunal or authority.
The Information Technology Act, 2000 and the amended Act have made provisions
for recognition of the electronic documents, contracts and other legal
instruments. Under the amended act, "Electronic Record" may be produced as
evidence before any court, tribunal or authority.
In India, an electronic record is a document or data that has been created by an
electronic device such as a computer or mobile phone with an information system
such as email software (with attachments), word processing applications etc.,
which includes all types of digital records including videos recorded on video
cameras etc. A digital certificate is also considered as an electronic record
since it contains information about its owner(s) identity/rights over something
like property deeds signed between two parties before they exchanged keys in
order to protect themselves against fraudsters who might try stealing assets
after getting hold of their names/IDs etc.
Information technology act, 2000 made provisions for recognition of the
electronic documents, contracts and other legal instruments. Under the amended
act, "Electronic Record" may be produced as evidence before any court, tribunal
or authority. In India, an electronic record is a document or data that has been
created by an electronic device such as a computer or mobile phone with an
information system such as email software (with attachments), word processing
applications etc., which includes all types of digital records including videos
AI for Smart Contracts in India
In this article, we will discuss AI for smart contracts. We will look at how AI
can be used to generate smart contracts on the blockchain and what benefits it
has to offer.
AI-Generated Smart Contracts in India
The first step in using AI for smart contracts is getting access to data. This
can be done by using a tool like OpenCog which has been developed by DeepMind as
part of their research project called "OpenCog Labs" (OCL). OCL allows you to
create simple programs which access your own data source or any external source
that you want; it also comes with a web interface so that anyone from anywhere
can be involved in creating these programs.
This article has discussed the legal status of AI in India. The law pertaining
to the use of AI and smart contracts is only going to change over time, but at
present there are no clear guidelines. The overarching principle is that all AI
should be treated as personal data, which means that you will need to obtain
consent from each individual before using it for any purpose.