Why blockchain and smart contracts can improve public contracts

Technological innovation produces continuous and direct effects on the organization of work, on social relations and on the system of industrial relations, so that, as a consequence, it is necessary to rethink the traditional legal categories in the field of labor law. In the era of digitization of work, in which the need to guarantee security, confidentiality in data processing and certainty and speed in transactions is increasingly felt, it is necessary to critically redefine all the administrative management techniques of the employment relationship. Let’s see how.

What is meant by blockchain and smart contracts

The blockchain represents a technological tool with great potential in the business innovation process, able to offer transparency, security and traceability of transactions and falls within the so-called distributed ledger technologies (DLT), architectures in which the ‘register’ of transactions is placed on a peer-to-peer network. Transactions are not recorded individually but in blocks. Each block represents the link in the chain which, once validated and completed with the information received, is made immutable. This technology can also be used in the exchange of goods and rights in legal traffic, as it provides a programmable computing environment for the use of applications called smart contracts.

When smart contracts are legally binding contracts Smart contracts are therefore not in themselves sources of obligations but these sequences of execution codes allow the insertion of contractual clauses in the software, used in a specific contractual relationship, to make it impossible to breach it. This therefore allows smart contracts in the abstract to constitute all or part of a legally binding contract since, under certain conditions, they can comply with the requirements of the contract. In this case, the sequence of codes would recognize the obligation of the agreement causing the sanctions to arise, in order, therefore, to enforce the result- Both the precepts that the parties have voluntarily established and the commands imposed by law should therefore be inserted .

Among smart contracts, a distinction can be made between ‘external model’ and ‘internal model’ contracts.