Bridging the Gap between Denotational Semantics and Operational Semantics in Smart Contract

Abstract

In this era of increasing cyber dependency in business dealings there is huge potential in the adoption of Distributed Ledger Technologies (DLT) particularly in the context of smart contract in the commercial world. The phenomenon of smart contract operates independently without the cumbersome need to engage any intermediary. It has been argued that there is too much dependency on the programming aspect in the creation of smart contracts by programmers and computer scientists. Smart contract are more like an Apps which is capable of executing specific task but it fails to observe the fundamental understanding and agreement between the negotiating parties which is the core essence in traditional commercial contract. The objectives of this paper are to first, demonstrate the semantic discrepancies between traditional contract and smart contracts and the implication of the latter. Secondly, to support the proposition that programmers and computer scientists lack the required legal knowledge and logic in appreciating the various legal terms and effects of a concluded contract, there is a need to include lawyers and regulators to enhance the drafting of the corresponding denotational semantics in programming smart contract. This paper contends that the operational semantics which deals with the execution of the contract on technical platform should be consistent with and correspond with the denotational semantics.