Eternity Law International News The advantages of hybrid smart contracts

The advantages of hybrid smart contracts

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

Ready-made company in USA

Starting a business in the United States is a dream for many aspiring foreign entrepreneurs worldwide. The USA offers a thriving market, a stable economy, and a plethora of opportunities. However, setting up a new company from scratch can be a daunting task. This is where the concept of buying a ready-made company comes into...

ISO 39001: Road Safety

Fleet workers, heads of transport departments at enterprises, road construction and repair teams, road maintenance organizations, design organizations, driver schools and traffic police officers in their daily professional activities influence road safety (RTS), and measures to control their activities are outlined in the relevant regulation. The ISO 39001 standard can be used internally and externally,...

PSD3: Challenge for EMI and PI

The ever-evolving field of monetary technology, often referred to as FinTech, has been a driving force behind the transformation of PI and EMI. Against this backdrop, Payment Service Directive 3 (PSD3) is set to become a significant milestone, ushering in a new era of rules and standards. Within this evolving framework, electronic money institution authorization...

Malaysia DAX - digital asset exchange in Malaysia

In recent years, the global monetary landscape has witnessed the rapid emergence and growth of crypto and digital investments. As these digital currencies gain mainstream acceptance, the demand for secure and reliable programs to trade and interchange them has surged. Malaysia, a vibrant Southeast Asian nation, has stepped into the digital asset arena with the...

Ready-made company in Portugal

The option to buy shelf companies in Portugal is ideal solution for businessmen who intend to establish a firm abroad and enter global market-space. In the territory of this jurisdiction, entrepreneurs often choose firms that are created under the Trespasse scheme. Below we will take a closer look at what this scheme is and what...

Company registration in Namibia

Namibia is considered one of the richest and most influential countries in the African continent. That is why many foreign entrepreneurs strive to set up businesses there. Organizational forms for businesses in Namibia You can register a commercial structure in Namibia in one of the following forms: a company with limited liability of its participants...
Fill the blank:


Dreikonigstrasse, 31A, Stockerhof


Baseina street, 7


Grosvenor Gardens, 52

New York

1178 Broadway, 3rd Floor #3353 New York, NY 10001


Gediminas Avenue, 44A


Kesklinna linnaosa, Tuukri 19


Lochrin Square, 1


Jacovides Tower, 5 floor


Esplanade, 7 floor

Hong Kong

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


Level 42, Suntec Tower Three, 8 Temasek Boulevard


20 Martin Place


2609 Avenida da Boavista


Revaz Tabukashvili Str., N 45, area N 7