Smart contracts and the development of regulatory framework for the digital economy ecosystem in the Russian Federation

Introduction: rapid development of blockchain technologies led to the emergence and introduction of smart contracts - automated protocols of transactions which can independently fulfil agreement terms. Purpose: the article aims to develop the fundamentals of the civil theory of smart contracts, which is a task of particular importance for Russian civil law. The theory is supposed to include the concept of the smart contract, its qualifying features, functions, and special aspects of its execution. Based on the theory, it will be possible to practically use these constructions, possessing inestimable economic potential, to develop uniform practice in applying the law in this sphere, which will ultimately add to increasing the investment attractiveness of the Russian legal and economic system, to sanitizing the economic climate of modern economy, to improving the efficiency of the civil turnover in the Russian Federation. Methods: the methodological framework of the research is based on the dialectic-materialistic method of the legal reality perception. This method allows studying smart contracts as well as other institutions of digital economy in their interrelations and interdependence, and makes it possible to research the problems associated with digitalization of Russian law of obligations in view of the changed socio-economic conditions and in conjunction with other adjacent institutions of civil law existing in the Russian Federation and being relevant to the needs of digitalization. Such universal scientific methods as analysis and synthesis of doctrinal, normative and law enforcement materials were also employed. The use of the structural and functional method allowed us to identify the functions of smart contracts through the prism of their specific features and place in the country’s digital economy. The comparative legal method was applied to identify the similarities and differences in the options of Russian and foreign regulatory frameworks of the law of obligations with regard to the smart-contract implementation in the context of Russia’s digital economy. Results: the article examines the regulatory framework of the digital economy in the Russian Federation, discusses legalization of smart contracts in Russian civil law on the basis of foreign experience, presents the concepts that explain the nature of the smart contract; identifies the qualifying features and functions of the smart contract. Particular attention is given to the role of blockchain technology in execution of smart contracts. The paper highlights the specific features of the smart contract that should be considered by the Russian legislator while developing the appropriate set of norms. Conclusions: the conclusions of the paper reflect the author's conceptual view of the smart contract and represent the fundamentals of the civil theory of smart contracts. The author proposes a palliative solution to the problem of the smart contract statute definition in Russian civil law through legalizing Article ‘327.2. Fulfillment of Obligations by Means of Special Information Technologies (Smart Contract)’.