Eternity Law International News The advantages of hybrid smart contracts

The advantages of hybrid smart contracts

Published:
September 13, 2022

Contrary to common ones, smart contracts operate on blockchain-based technologies, denoting that there is no demand for a middleman to execute programmed algorithms. Allowing to avoid expensive court systems, smart contracts are much more affordable, so more P2P operations can be administrated by contractual mechanisms rather than trust deals. This is one of the main advantages of hybrid smart contracts (further mentioned as HSC) over common ones.

Overview of HSC pros

Contractual agreements between enterprises domiciled in opposite corners of the globe are often quite difficult, as applying to the separate court systems that have not a lot in common together is costly, and as a rule, the court mechanisms of one country have bounded authority over foreign entities. HSC do not feature this disadvantaging aspect; they don’t take the issue of citizenship into the consideration at all.

Implementing common contracts via the court systems does not only cost a fortune but also brings some confusion. There will always be a possibility that attorneys-at-law find some hidden way-outs that cancel the entire contract. Even when all terms are satisfactory, the parties still depend on their authority’s goοdwill to keep on guaranteeing that the contractual agreements is realized as expected.

The bright example of this use case of HSC is the mοratorium on evictiοn in the USA and other countries that recently took part. Leaseholders and tenants entered agreements under the condition that if renting fee was not repaid, the owner of the property would have the legal right to apply to the court and evict a tenant. This action undertaken by authorities around the world efficiently canceled practically all rental agreements that were in force at that moment.

This amendment didn’t only change the odds for the renters who could not repay their rents, it also canceled arrangements between dwelling owners and residents who had the payment capacity. Even those residents who could repay would not be subjected to forcing to vacate a property, meaning that some of them chose not to repay either. In this example, it is understandable that contractual agreements that can be destroyed at any time do not look beneficial in comparison with HSCs.

Shortly, common legit contracts will be changed by HSCs, as they operate more quickly, are more effective, and feature less vulnerability to legal escape clauses. Hence, the main benefits of hybrid smart contracts are that they are less costly and can reach internationally just as smoothly as at the local level.

Please contact us to get more information.

You can see our current offers in the categories “Cryptocoins and licensing of cryptocurrency operations”, “Ready-made companies”, “Banks for sale” and “Licenses for sale”.

You could be interested

Kazakhstan EMI License: overview

Given the rising market demands for electronic money and cash-free transactions across the world, an Electronic Money Institution in Kazakhstan fairly is a tremendous opportunity for businesspersons. To capture a share of the financial market of this jurisdiction, a Kazakhstan EMI License should be obtained by financial service providers. It authorizes entities to issue e-money...

ICO - Game by the rules

In the first quarter of 2018, the most popular topic in the world of cryptocurrency was the regulation of ICO. This happened in Switzerland, where in February FINMA issued its ICO guidelines. This caused a huge resonance both within the country and in the wide association of blockades. Considering the fact that we are members...

Promotional offer of the month

Promotional offer of the month. Until the end of June 2019, Eternity Law International offers the following services at promotional prices: Scottish LP, Ireland LP, Wales LP (apostilled stitching with a general power of attorney) + nominee service 1 000 Eur Scottish LP, Ireland LP, Wales LP (apostilled binding with a general power of attorney)...

ICO in Switzerland

CURRENT ACCOMMODATION OF COINS OR ICO FROM VIEW OF SWISS law The initial placement of coins, or, as it is also called ICO in Switzerland is considered an irregular method of involving an investment in a project. In essence, it is the issue of digital coins or tokens that are used to create a new...

How to get a Gibraltar gaming license in 2023

When the 2005 law was published and started to rule the sector, every aspect of the companies was reviewed and repaired. Thus, if you are attracted to running a business in this sector we recommend obtaining the gambling license in Gibraltar. Keep reading to discover more about it. Gaming license in Gibraltar in 2023 The...

Company registration in Bulgaria

Bulgaria belongs to the rapidly developing Eastern European states – not only in the cultural, but in the political and economic sense of these words. It is especially interesting in terms of building and expanding personal entrepreneurial activities. To date, special services for registering an organization in the Bulgarian state are considered to be among...
Fill the blank:

Zurich

Dreikonigstrasse, 31A, Stockerhof

Kyiv

Baseina street, 7

London

Grosvenor Gardens, 52

Edinburgh

Lochrin Square, 1

Nicosia

Jacovides Tower, 5 floor

Tallinn

Kesklinna linnaosa, Tuukri 19

Riga

Esplanade, 7 floor

Vilnius

Gediminas Avenue, 44A

New York

New Rochelle, Huguenot St, 175

Sydney

20 Martin Place

Singapore

3 Fraser Street, #08 DUO Tower

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai

Porto

2609 Avenida da Boavista

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7