(Luận văn thạc sĩ) smart contract – achievement of blockchain application, loopholes and recommendation for vietnam

MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY MASTER THESIS SMART CONTRACT – ACHIEVEMENT OF BLOCKCHAIN APPLICATION, LOOPHOLES AND RECOMMENDATION FOR VIETNAM Specialization: Master of International Trade Law and Policy HO MINH KHUE Hanoi - 2020 Luan van MINISTRY OF EDUCATION AND TRAINING FOREIGN TRADE UNIVERSITY MASTER THESIS SMART CONTRACT – ACHIEVEMENT OF BLOCKCHAIN APPLICATION, LOOPHOLES AND RECOMMENDATION FOR VIETNAM Major: International economics Specialization: Master of International Trade Law and Policy Code: 8310106 Full name: Ho Minh Khue Supervisor: Dr Nguyen Ngoc Ha Hanoi- 2020 Luan van i STATEMENT OF ORIGINAL AUTHORSHIP I, Ho Minh Khue, confirm that this Master thesis has been written solely by the undersigned and contains the work of no other person or people except where explicitly identified to the contrary I also state that said Master thesis has not been submitted elsewhere for the fulfillment of any other qualification I make this statement in full knowledge of and understanding that, should it be found to be false, I will not receive a grade and many face disciplinary proceedings Signature: Date: 23rd March 2020 Luan van ii ACKNOWLEDGEMENTS I would like to express my special thanks of gratitude to my supervisor Dr Nguyen Ngoc Ha as well as our principal, Faculty of Graduate Studies and all professors of Foreign Trade University who game the golden opportunity to this wonderful projects on the topic “Smart contract – Achievement of Blockchain application, loopholes and recommendation for Vietnam”, which also helped me in doing a lot of research and I came to know about so many new things I am really thankful to them Secondly, I would also like to thank my parents and friends who helped me a lot in finalizing this project within the limited time frame Luan van iii CONTENTS STATEMENT OF ORIGINAL AUTHORSHIP i ACKNOWLEDGEMENTS ii LIST OF ABBREVIATIONS iv LIST OF TABLE SUMMARY OF THESIS RESEARCH RESULTS v INTRODUCTION .1 CHAPTER 1: UNDERSTANDING OF BLOCKCHAIN APPLICATION AND SMART CONTRACTS 1.1 Definition of Blockchain and how it works 1.1.1 History, definition and types of Blockchain 1.1.2 Development of Blockchain recently .13 1.2 Fundamental of Smart contracts 16 1.2.1 Definition, characteristics and mechanisms of Smart contract 16 1.2.2 Benefit and potential application of Smart contract in realistic 23 1.2.3 Overview about challenges of Smart contracts 32 1.3 Detailed challenges .33 CHAPTER 2: SITUATIONS OF SMART CONTRACTS WITHIN CURRENT FRAMEWORKS 36 2.1 Overview framework and policy of Smart contract in some countries 36 2.1.1 Current legal frameworks in some countries 39 2.1.2 Evaluation .48 2.2 Problematic aspects that arise with Smart contracts 49 2.2.1 Technically difficulty posed by smart contract development 49 2.2.2 Smart contracts and contract law 50 CHAPTER 3: RECOMMENDATION FOR VIETNAM 64 3.1 Actual situation of Blockchain application in Vietnam 64 3.2 Contracts and Smart contracts regulation in Vietnam 67 3.3 Lessons from framework and policy of Smart contracts for Vietnam 71 3.3.1 Principles for the Blockchain Act 73 3.3.2 Issues relate to the law and blockchain 84 3.3.2 Issues relate to smart legal contracts .86 CONCLUSION 89 LIST OF REFERENCES .91 Luan van iv LIST OF ABBREVIATIONS No Abbreviation Description IoT Internet of Things P2P Peer to Peer TCP Transmission Control Protocol PoW Proof of Work DLT Distributed ledger technology PGP Pretty Good Privacy ICO Initial Coin Offering ID Identification DAO Decentralized organizations 10 dApp Decentralized applications 11 GDPR General Data Protection Regulation Luan van (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam v LIST OF TABLE Table 1.1: Public Permissionless and Private permitted Blockchain Table 1.2: Traditional and smart contracts 23 Chart 1.1: How smart contracts work .19 Luan van (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam vi SUMMARY OF THESIS RESEARCH RESULTS The birth of "smart contracts" have based on developments in the emerging field of Blockchain application: computerized transaction protocols which autonomously execute the terms of a contract With a lot of advantages which I will analyze below, Smart contracts are really offering the promise of increased commercial efficiency, lower transaction and legal costs, and anonymous transacting However, beside of benefits they bring into, there are equally significant concerns that smart contracts will encounter considerable difficulty adapting to current legal frameworks regulating contracts across jurisdictions This thesis hopes considers the potential issues, loopholes within legal and practical enforceability that arise from the use of smart contracts and gives recommendation for Vietnam Luan van (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam 85 Territoriality: The nature of blockchains may render it difficult to determine in what country damage occurs as a result of conduct on blockchains For this reason, we might need to revisit aspects of European private international law To achieve certainty as to the precise nature and scope of legal relationships on blockchains, a potential approach could be to develop existing legal tools further This makes cross-jurisdictional harmonization important That, in turn, requires regulators and lawmakers to collaborate across national borders to harmonize legal and regulatory regimes, while managing potential risks, including issues of monopolies and market manipulation Addressing these would require significant legal and organizational changes and a mechanism for collaboration to ensure alignment Enforceability: Again, the primary concern of blockchain is always surrounding anonymity However, the report provided a clear explanation that blockchain could be anonymous in real-time during the transaction, but it is not entirely non-detectable It is not an issue for enterprise blockchain solutions (i.e., permissioned blockchain) because it is mainly designed for identifiable and accountable actors to engage in the network As for permissionless blockchain, it is not true that users who violate the law on a blockchain are not identifiable or traceable This is because the entries in the ledgers are immutable, providing an audit trail and evidence of wrongdoing While not always identifiable real-time of the transaction, given enough time and effort, many parties to a transaction can be unmasked Therefore, at this point, there is no question of total impunity for blockchain actors It is important to note that the most popular platforms not support anonymity completely: Bitcoin and Ethereum Importantly, consumers typically purchase and trade their cryptocurrency on the crypto exchanges (e.g., Coinbase and Binance), where such crypto intermediaries require users to provide real identity during the registration process to adhere to AML and other regulations In this sense, the intermediaries can be handy regulatory access points, as with any regulatory intervention Luan van (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam 86 Liability Two aspects of liability should be addressed: (1) liability of core software developers and (2) liability of network participants generally Based on the report, it suggested that it does not seem appropriate to charge core software developers with responsibility for any unlawful use of an open-source program merely because they are the creators of the tool Blockchain open-source software, similar to all other products, can be used to achieve good and evil goals It is important to note that imposing extended responsibilities on core software developers may drive some of them to escape into anonymity or discourage them from trying to innovate Although it is possible to identify the actors in the permissionless blockchain network, this does require time and effort and is therefore not always practical This can, in turn, be an obstacle in enforcing liability (compensation) on actors in blockchain-based networks generally As such, by creating an insurance system in the permissionless blockchain network (as a party to liable to injured party) would make the whole system more expensive during the audit trail process Data protection Apart from anonymity concern, as explained before, other considerations are worth to examine For instance, the data provider‘s right to control the data on the blockchain network can be problematic, including rights to the rectification of personal data, to know if one‘s data is being processed and—an issue with smart contracts—the right to be protected from decisions made only on the basis of automated data processing Inspire of these challenges, the findings of the report remain a positive view on solving these thorny issues in the near future 3.3.2 Issues relate to smart legal contracts According to the report, a smart contract could represent a digital asset (i.e., payment, investment, and utility tokens) or an organization (i.e., DAOs), and act as an autonomous agent (e.g., a smart contract with AI features) However, when it comes to the legality of smart contracts, here are some of the issues that arise: Luan van (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam 87 Formal requirements Perhaps in a given jurisdiction, a contract needs to be on paper or be notarized, or maybe not As an example, Swedish law normally accepts oral agreements as valid, but only paper contracts when it comes to real estate At the same time, unlike other countries, Swedish law does not require the use of notaries Similarly, there may be requirements that a contract is in a language that both parties can understand (although English is universally accepted, we cannot assume that all non-English speakers can understand English perfectly) Can computer code be considered such a language? And if so, would we then require ―translations‖ of this language into others, like ordinary human language, and thereby also need rules for what constitutes a legally binding translation of a smart contract to say Finnish, German, French or Italian? Signing requirements Another question affecting whether a smart contract is legally binding has to with who ―signed‖ it, and how this signature has been carried out To be legally valid in Europe under the eIDAS, digital signatures on a blockchain must be verified by a trusted service provider An automated smart legal contract requiring such digital signatures will need to be able to ascertain if the signature is valid, if it refers to the correct person and, if so, if that person has the authority to sign In commercial settings, this could mean being able to access company databases or some other reliable oracle These, in turn, would need some legal standing Immutability of smart contracts The more ―automated‖ a smart contract is, the trickier the legal issues can become The advantage is that they will execute as written no matter what— holding, in theory, the parties to their commitments through the inexorable might of code Yet in such cases, what happens from a legal perspective if off-chain conditions change? There might be changes in the law, applicable regulations, in the business environment, or other relevant spheres that would necessitate a change in the smart contract What legal recourse would the parties have if the smart contract Luan van (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam 88 they have deployed cannot be accessed and modified? If appropriate functionality is not included in the code to allow for the adoption of the changes in the legal contract, the smart contract could perform non-valid legal actions Smart contract audits/quality assurance A smart contract might execute as written and yet still behave in ways not foreseen by its writers For this reason, smart contract ―audits‖—often complex, highly technical processes to check for the validity and viability of smart contract code become important That raises the question of whether such audits have to become requirements, or also need legal recognition of some kind to make a smart contract valid? This has yet to be decided Legal status, effect and enforceability of smart contracts generally The act of transacting, even if devoid of requiring any element of trust, must result in an enforceable change over rights attaching to or deriving from the asset concerned, whether this is a token or is represented by a token For the assets transacted on blockchains to exist in the real world, they should be vested with rights in rem In conclusion, the advancement of the current blockchain technology becomes more widely used in support of new types of decentralized applications and platforms, lawmakers and regulators should increasingly find themselves faced with challenging questions However, these challenges are healthy and will be welcomed as part of the natural processes of change in society for the betterment Luan van (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam 89 CONCLUSION A smart contract, as for what has been argued, complies with the essential elements - consent, object and cause- and form Vietnam Law requires and, therefore, fits under the principals of Contract Law Nevertheless, it is still a new technology and we have a lot to learn That is why it is worth encouraging public authorities and jurists to embrace and adapt to the changes and needs of the blockchain technology and smart contracts, taking into account its particularities, which are not few, in the stages of formation and perfection, performance and breach Most solutions come in comparison to traditional contracts, but it is not always possible due to the nature of smart contracts Yet any type of contract is an agreement that can be enforced, there are differences regarding the type of contract In a conventional contract, when breached, the aggrieved party takes legal action going to court to demand restitution, a specific performance or pay for caused damages; But when it comes to smart contracts, due to its conditional and selfenforceability nature, the contract would have already been executed or in the process of execution, so the aggrieved party will have to go to court after an improper compliance or unjust enrichment Nevertheless, the breach is a possibility when a code cannot correctly execute due to a missing input, yet smart contracts pretend to avoid these problems For legal security, it is important that legislators and jurists intervene clarifying the consequences ex-ante In the fact that a large part of the population uses these technologies in this type of transactions, such as the use of smart contracts, many legislations not yet stipulate a legal framework that regulates commercial matters carried out in this means that allow legal certainty by assuming that those with whom it is treated will respect their commitments as in conventional agreements Although no doubt that this type of instruments have multiple advantages such as cost reduction, the elimination of intermediaries and the protection of data by being in an encrypted code, we cannot ignore that being a legitimate tool, necessarily in its creation, as throughout its validity and at the end of it must have legal supervision that allows Luan van (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam 90 users to have full certainty that the agreed agreement will have compliance and otherwise must trust that there will be mechanisms to restore arbitrariness As one of the products of Industry 4.0, Blockchain in general and smart contracts in particular is one big step of digital technology in transactions With many advantages, smart contracts can make the world become a better place without profit commissions It is true that blockchain and smart contracts pretend to change the way we use contracts Now, many companies and governments are working on these technologies due to all the benefits it provides, like lowering costs, being more secure, faster and, of course, with certainty However, the main downsides to consider is related to the early stage of development and, in particular, if they can work with the existing laws or need an additional regulation For now, the applications will not grab the attention of individuals and be focused on specific business areas, such as banking and insurance We not believe smart contracts will replace conventional contracts It is an alternative in specific areas that provides considerable advantages It can contribute to reducing fraud, delays and overall cost of things So, many experts predict smart contracts will become an important role in the future for most of the business and management sectors However, nothing is perfect, Smart contracts still have limitations, especially when the current laws not have enough time and data to control its limitations On the other hand, with Vietnams‘ abundant human resources, Smart Contracts also makes a lot of people lose their jobs By looking specifically, I hope we can find a right path for this technology in the Vietnamese environment Luan van (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam 91 LIST OF REFERENCES (1) Riccardo de Caria, A Digital Revolution in International Trade, The International Legal Framework for Blockchain Technologies, Virtual Currencies and Smart Contracts: Challenges and Opportunity (2) Aaron Wright & Primavera De Filippi Decentralized, Blockchain Technology and The Rise of Lex Cryptographia (3) E Allan Farnsworth, ‗Comparative Contract Law‘ in Mathias Reimann and Reinhard Zimmermann (eds), The Oxford Handbook of Comparative Law (OUP 2016) 901; Arthur von Mehren, ‗A General View on Contract‘, International Encyclopedia of Comparative Law: Contract in General, vol VII/1 (Mohr Siebeck 2008) 19ff.; Caroline Bradley, ‗Private International Law-Making for the Financial Markets‘ (2005) 29 Fordham Int'l L.J 127, 158f A Tapscott and D Tapscott, ―How blockchain is changing finance,‖ (4) Harvard Business Review, vol 1, no 9, 2017 A Tapscott and D Tapscott, ―How blockchain is changing finance,‖ (5) Harvard Business Review, vol 1, no 9, 2017 (6) Nakamoto, S., Bitcoin: A Peer-to-Peer Electronic Cash System, (2008), available at: https://bitcoin.org/bitcoin.pdf (7) Ametrano, F M., Hayek Money: The Cryptocurrency Price Stability Solution, (August 13, 2016) Available at SSRN: https://ssrn.com/abstract=2425270 or http://dx.doi.org/10.2139/ssrn.2425270 (8) Digital Transformation in Government and Blockchain Technology, speech delivered by Minister for Cabinet Office Matt Hancock at D Digital Catapult, Kings Cross, London on the 26th April 2016 Available at: https://www.gov.uk/government/speeches/digital-transformationingovernment-and-blockchain-technology (9) Perugini, M L & Dal Checco, P., Smart Contracts: A Preliminary Evaluation, December 2015 Available at: https://ssrn.com/abstract=2729548 Luan van (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam (Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam(Luan.van.thac.si).smart.contract.–.achievement.of.blockchain.application loopholes.and.recommendation.for.vietnam