Smart contracts and their impact on modern transactions: Horizons of digital transformation and legal regulation

Abstract

This article examines smart contracts as one of the most prominent manifestations of digital transformation affecting legal and economic transactions. This transformation has given rise to a new contractual model based on the automated execution of contractual terms through advanced digital technologies, foremost among them blockchain technology. The study aims to clarify the technical and legal foundations of smart contracts and to analyze the extent of their integration within the general rules of contract law under the Algerian Civil Code, while highlighting their main practical applications and the legal challenges they raise. The study adopts a descriptive-analytical approach by presenting the technical concepts related to smart contracts, followed by an analysis of Algerian legal texts governing electronic transactions. This approach enables an assessment of the position of this contractual model within the national legal system. The study concludes that, despite the advantages smart contracts offer in accelerating transactions and enhancing transparency and trust, they still face a legislative vacuum that requires legal intervention capable of keeping pace with technological developments and ensuring legal security for modern transactions.