Russian legislation can translate into blockchain

Within the framework of the “Digital Economy” program, officials proposed to gradually transfer Russian legislation to digital rails. More specifically, to the blockchain platform with the function of smart contracts. One of the proposals, which is contained in the plan of measures for the regulatory framework of the Digital Economy program, provides for the implementation of legal norms automatically. The main tool in this case is blockchain and smart contracts, write Vedomosti.

The Digital Economy program was approved at the end of July 2017. Its main goal is to increase the efficiency of all sectors of the economy through the use of information technologies. The program consists of five areas, one of which is the optimization of legislation. This direction is led by two organizations: the Skolkovo Foundation and MTS. The responsible ministry in this case is the Ministry of Economic Development. The ministry should offer its plan for the implementation of an automatic enforcement system.

In particular, it will be the Ministry of Economic Development that will determine the scope of application of smart contracts, as well as determine the limits of the impact of such decisions on citizens and on business. Representatives of the ministry have already stated that the agency fully supports the proposals contained in the draft plan. However, its specific points can be discussed only after the document is finally approved.
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Smart contracts are a technology that involves, in particular, conducting a transaction in automatic mode upon the occurrence of certain conditions. For example, it may be the purchase of a product or service, the imposition of a fine on a motorist who has exceeded the speed. Smart contracts are gradually being introduced more and more actively in many countries; both commercial organizations and governmental structures of different countries are working with this technology.

As for the legislation, the execution of laws can be automated using blockchain technology. This will reduce the amount of paperwork and increase overall system efficiency. Tools for the implementation of such a task already exist; you just need to implement them in everyday practice.

According to Nikita Kulikov, a member of the expert council on digital economics of the State Duma, neural networks can be used to carry out this project. In particular, with the help of algorithms, it is possible to analyze Russian legislation by determining the places where legislative norms are duplicated or even contradict each other. In general, the legislation needs to be made mathematically precise, so that the implementation of the norms of the law can be carried out without human intervention.

True, there are several shortcomings in this system, which are not so easy to eliminate at the state level. For example, in order to conclude a smart contract, all parties must sign it. If we are talking about legislation, then there must be a system of identification of citizens, but just there is no blockchain infrastructure in it. In addition, if the signing was incorrect, then it will be very difficult to challenge it. In order to realize our plans, it is necessary not only to improve legislation, but also to increase the transparency and speed of interaction between government agencies, departments and financial organizations.

According to lawyers, the instant transfer of ownership is not always the best way to conclude a deal. PwC legal practice partner Maxim Kandyba believes that the existing rights transfer mechanism is rather long, but it helps to counteract abuses and fraud. Therefore, it is not worth talking about a complete transfer of the legal framework for smart contracts, you need to use the blockchain in specific areas where the same smart contracts are most needed.

A pilot project of this kind will soon be launched in Moscow to use the blockchain to monitor the accuracy of information from the Unified State Register of Real Estate. It was decided to conduct the experiment for six months, from January to July 2018. Test results Rosreestr, Federal Tax Service and the Government of Moscow will evaluate until August 1, and then the departments will form a report for the government. The project itself is designed to increase the availability of real estate registry information, guarantee property rights protection and trust in real estate turnover.