The Nature of Electronic Contracts Using Blockchain Technology – Currency Bitcoin as an Example

Abstract

Purpose: This study aimed to assess the extent of the use and the safety of dealing withBitcoin through blockchain technology. Method/approach: Bitcoin model applied for electronic contracts. The method of functional-cost analysis for technical and economic analysis of system development for NFT creation is used in work. Theoretical framework: Bitcoin is a currency that depends on modern technological techniques with many advantages because they are used to send and receive money over the Internet and can be used in legitimate and illegal businesses. Therefore, quick international measures must be taken to regulate them legally through unified international conventions that regulate the ways of legal dealing with them. Results and Conclusions: International laws must govern and regulate the use of Bitcoin, as it is a currency traded over the Internet and can be used in legitimate and illegal businesses. And that the smart contract, which is executable code that runs on top of the blockchain to facilitate, execute and enforce an agreement between untrusted parties without the involvement of a trusted third party, can be used, especially since the International legislation lacks a legal regulation of virtual currencies. Research implications: The findings indicated the importance of stipulating special laws that regulate the use of Bitcoin. Originality/value: This work can provide possible solutions to reduce the risks of using Bitcoin, such as stipulating laws and regulations to regulate their use internationally.