Civil liability in smart contracts

Challenges for the definition of those responsible in case of technical failures

Authors

DOI:

https://doi.org/10.23925/ddem.v.1.n.13.68665

Keywords:

Civil liability, Smart contracts, Technical failures, Coding security, Digital legislation

Abstract

This article addresses civil liability in smart contracts, highlighting the challenges that arise from technical failures or coding errors. Using the inductive method and an analysis of up-to-date literature, the study explores the differences between traditional concepts of civil liability and the new challenges posed by smart contract technology. The research is based on theories of civil liability, particularly those that discuss faults and risk, adapting them to the digital context. The article seeks to answer two central questions: (1) How does the immutability of smart contracts affect the possibility of damage reparations in the event of technical failures? (2) What technological and legal mechanisms can be implemented to prevent technical failures in smart contracts, and how can these mechanisms be integrated into existing legislation? To address these issues, the study proposes the creation of new legal models that include guidelines to ensure secure coding, shared responsibility between developers and platforms, and the introduction of specific mechanisms for conflict resolution. The conclusion is that current legislation is insufficient to adequately address the particularities of smart contracts, especially regarding the definition of liability in the event of technical failures.

Author Biography

Wellington Jose Campos, Faculdades Milton Campos - FMC, Belo Horizonte, MG

Master in Economic and Social Relations Law from Faculdades Milton Campos. Graduated in Law from Centro Universitário Metodista Izabela Hendrix. Specialist in Information Technology Management. Specialist in History and Political Cultures from Universidade Federal de Minas Gerais (2008). Bachelor's and Licentiate's Degree in History from Faculdade ASA de Brumadinho (2006). Currently dedicated to legal research with interfaces with computer science. Holds debates in the Theory and History of Law, with studies on Hanna Arendt and Carl Shimtt and Military Dictatorship in Brazil. Member of the research group: Digitalization, artificial intelligence and legal research in times of pandemic (DGP/CNPq), from Faculdades Milton Campos, led by Carlos Alberto Rohrmann. Member of the Interdisciplinary Center for Law and Culture (NIDC) - Advanced Studies Workshop Axis: Law Course at Faculdades Milton Campos - Member of the Study Group on Herman Dooyeweerd at the Federal University of Minas Gerais.

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Published

2025-04-30

How to Cite

Campos, W. J. (2025). Civil liability in smart contracts: Challenges for the definition of those responsible in case of technical failures. Democratic Rights & Modern State, 1(13), 82–105. https://doi.org/10.23925/ddem.v.1.n.13.68665