Polysubject Jurisdictional Blockchain: Electronic Registration of Facts to Reduce Economic Conflicts

Abstract

The article was prepared for the purpose of scientific substantiation of the need for a systemic reduction of conflict among economic agents through a preventive-prophylactic approach. To achieve this target, the authors, developing the content of the article, methodologically rely on the materialistic, positivistic world outlook, apply a number of general scientific, special scientific and special methods. The conflict nature of economic activity, expressed in legal disputes of economic entities, adversely affects the economic dynamics in general, forever breaks the established economic and contractual relations between them, in particular. Quite often, litigations arise between business entities due to the unequal understanding by the parties of the sequence, timing and amount of fulfillment of their obligations regarding the supply of goods, the performance of work, the provision of services, and the exercise of property rights. And also because of the different interpretations of those documents that the parties draw up in the execution of transactions. Huge material and time resources are spent on proving one or another circumstance, on upholding one or another position arising from the interpretation by the party of its specific obligations under the transaction. The preventive-prophylactic approach provides for the initial reduction of potentially conflicting points in the implementation of bilateral relations through electronic registration of the facts of the activities of economic entities themselves, which after such registration are considered identically understood and recognized by the parties, are considered proven and cannot be disputed. It is discussed that it is necessary to do this, both at the stage of concluding a bilateral agreement and further, successively in the stages of the fulfillment of obligations by each party. As a result, the number of potentially conflicting moments that could arise in economic contractual relations decreases in the process of interaction between the parties and tends to zero by the deadline for the transaction. Technically preventive-prophylactic approach to reducing the conflict of economic activities involves the continuous maintenance of a distributed register of electronic registration of facts of economic and contractual relations by several public entities and the parties themselves. The specified distributed registry is legally valid at the national level, the database on registration of facts of economic and contractual relations is duplicated and stored on servers of a number of judicial and executive authorities. The facts of economic and contractual relations for specific transactions that are electronically registered in the specified distributed registry are not subject to dispute. As a result, business entities initially have an extremely narrow field for mutual misunderstanding and for litigation on certain issues of economic activity, the potential for conflict in their contractual relationships is reduced.