NEWSLETTER-2020-metin

235 ARBITRATION LAW Smart Contracts Smart contracts can be simply described as “self-executing elec- tronic instructions drafted in computer code” 4 . Blockchain arbitra- tion aims to be an efficient decision-making process, especially in relatively small disputes arising from smart contracts 5 . As explained above, smart contracts are executed with the re- alization of predetermined conditions. In other words, they can be expressed as “coded instructions that perform an act once an event occurs” 6 . Smart contracts may also be referred to as self-executing contracts, and only specific parts of contracts that can be conditioned and automated can be enforceable 7 . For example, insurance contracts are considered eligible to be issued as smart contracts, because the payment will be made automatically with the realization of the risk determined by the smart contract 8 . However, there are questions about the scope of the application of smart contracts, because all contracts cannot be designed as if-then statements. Indeed, most contract clauses are interpreted by the prin- ciples of contracts law, such as the principle of good faith 9 . Currently, only the obligations of smart contracts that can be executed digitally are binding. blockchain-a-suitable-tool-for-arbitration/ (Access date: 28.05.2020). 4 R. O’Shields , ‘Smart Contracts: Legal Agreements for the Blockchain’ (2017) 21 NC Bank. Inst. 177 at 179. 5 “ Blockchain – A Suitable Tool for Arbitration? ” https://iot.taylorwessing.com/ blockchain-a-suitable-tool-for-arbitration/ (Access date: 28.05.2020). 6 “ The Rise of Blockchain Arbitration?” https://www.acerislaw.com/the-rise-of- blockchain-arbitration/ (Access date: 23.05.2020. 7 “ The impact of blockchain technologies and smart contracts on dispute resolu- tion: arbitration and court litigation at the crossroads, ” Uniform Law Review, Volume 24, Issue 2, June, 2019, pp. 430–448. 8 “ Blockchain – A Suitable Tool for Arbitration? ” https://iot.taylorwessing.com/ blockchain-a-suitable-tool-for-arbitration/ (Access date: 28.05.2020). 9 “ The impact of blockchain technologies and smart contracts on dispute resolu- tion: arbitration and court litigation at the crossroads, ” Uniform Law Review, Volume 24, Issue 2, June, 2019, ss. 430–448.