English
17 სექტემბერი, 2026
ფიზიკური და ონლაინCourse Lecturer/Instructor: Irakli Giviashvili, PhD (Nottingham Trent University, Law School), LLM (University of Heidelberg, Faculty of Law)
Language of Instruction (teaching language): English
Fees: 650 GEL
- Start date: 17 September, 2026
- End date: 5 October, 2026
- Lecture days:
Mondays 19.00 – 20.30
Thursdays 19.00 – 20.30
- Lecture duration: 1.5 hour
- Lectures per week: 2 (3 hours)
- Total number of lectures: 6 (9 hours)
Course Format: HyFlex (Hybrid-Frexible). HyFlex teaching combines face-to-face and online learning. Each lecture of the course is offered in-person, synchronously online via Zoom, and asynchronously online (through video recordings in Google Drive) i.e. for students who may not be able to connect to Zoom on a given day
Certificates: Certificates will be awarded upon completion of the course
Course Prerequisite:
Prerequisite knowledge (for example, in legal science or computer science) not required
Adequate skills of the English language required (however, no exams/tests for admission will be held)
Venue: Sustainability Science Academy, 5 Marjanishvili Street, Tbilisi, 0102, Georgia
Contact Details:
+995577508487
Introduction
Smart contract law is about how traditional legal principles adapt to automated, blockchain-based agreements, balancing technological efficiency with legal accountability. For example, jurisdictions like the U.S., U.K., and Singapore generally treat smart contracts as valid and binding as long as they satisfy traditional legal requirements.
Smart contract law is a rapidly evolving field where traditional legal principles—such as offer, acceptance, and consideration—are being adapted to automated, code-based agreements.
Smart contract law represents a significant evolution in the relationship between law and digital technology. It seeks to reconcile traditional legal doctrines with automated blockchain-based transactions while addressing novel issues of governance, liability, and enforcement. As blockchain adoption continues to expand across industries, smart contract law will play an increasingly important role in ensuring that technological innovation remains consistent with legal certainty, commercial fairness, and the rule of law.
Governments and international organizations are increasingly adapting legal frameworks to accommodate blockchain-based transactions. Some jurisdictions have explicitly recognized the legal validity of smart contracts and electronic records, while others continue to rely on existing contract law principles.
While the technology aims for "code as law," most jurisdictions currently view smart contracts as tools for performance rather than a full replacement for legal frameworks. Legal scholars generally argue that smart contracts should complement rather than replace traditional legal contracts.
Blockchain
Blockchain is a decentralized and shared digital database where no single entity controls the data. The decentralized nature of data storage across a network of computers is a core principle of blockchain technology, ensuring that no single entity controls or stores all the data.
Digital Ledger
Nodes (computers/servers)
Blockchain as a distributed digital ledger system maintains an open record of transactions across different nodes (or servers). Nodes are individual computers or devices that participate in the blockchain network and store copies of the ledger. Nodes validate transactions, store data, and maintain the blockchain. Blockchain nodes save data by each maintaining a copy of the distributed ledger, which contains all validated transactions. Each node has a copy of the entire blockchain.
Blocks (records of transactions)
In a blockchain, data is stored in a decentralized manner across a network of computers or nodes where blocks are chained together. Blocks are immutable data containers holding records of transaction and forming the "chain". Transactions are basic units of data that represent the transfer of assets or information on the blockchain. Records of transactions are grouped into blocks and added to the blockchain after validation. Blockchain ensures that transactions are validated through a consensus mechanism, ensuring agreement across the network of computers.
“Chain”
Each block stores transactions, and when a block is full, a new block is created and linked to the previous one, forming a chain. Each block contains data, and the blocks are linked in a chronological "chain”.
Cryptography
Blockchain stores data in “blocks” linked together via cryptography. Blocks hold a timestamp and a cryptographic hash (unique digital fingerprints for data) of the preceding block, forming the "chain".
Cryptocurrencies and Crypto Tokens
Every cryptocurrency is either a crypto coin, or a crypto token. A crypto coin is the native cryptocurrency of own blockchain. A crypto token is created on top of another blockchain, using a smart contract. However, there are there are crypto tokens that are not cryptocurrencies.
Cryptocurrency (coin or token) is a digital asset based on a blockchain network that is distributed across a large number of computers. It is a decentralized digital money system that operates as virtual coins or tokens. Cryptocurrency is a form of digital currency that can be used for internet-based electronic payments or as a store of value. Cryptocurrencies enable secure online payments without the use of third-party intermediaries.
Cryptocurrencies (Crypto Coins and Crypto Tokens)
Cryptocurrency, sometimes called crypto, is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrency received its name because it uses encryption (the unique software code underpinning a virtual currency) to verify transactions. Cryptography makes it nearly impossible to counterfeit or double-spend.
Cryptocurrencies are rooted in blockchain technology. Cryptocurrencies run on a distributed ledger, enabling peer-to-peer transfer and storage of value without requiring a central authority. The blockchain's decentralized structure allows cryptocurrencies to exist outside the direct control of governments and central authorities.
The first cryptocurrency was Bitcoin, which was founded in 2009 and remains the best-known today. Much of the interest in cryptocurrencies is to trade for profit, with speculators at times driving prices skyward. There are around17,000 actively treaded cryptocurrencies in the world.
A crypto coin is the native cryptocurrency of its own blockchain. It is an integral part of the blockchain protocol and is typically used to: pay transaction fees; reward validators or miners; secure the network; serve as a medium of exchange; store value. Examples of crypto coins are: Bitcoin (the native coin of the Bitcoin blockchain), Ether (the native coin of the Ethereum blockchain), ADA (the native coin of the Cardano blockchain).
A crypto token is created on top of an existing blockchain, usually through a smart contract. The following are examples of crypto tokens that are categorized as cryptocurrencies because they are designed primarily to function as money or a medium of exchange: Payment tokens (currency tokens), used to transfer and store value, for example: Tether (USDT); USD Coin (USDC); Dai (DAI); Wrapped Bitcoin (WBTC). Stablecoins (a subtype of payment token whose value is pegged to a fiat currency or another asset), although technically tokens on a blockchain such as Ethereum, they function as cryptocurrencies because they are used for payments and value transfer.
Crypto Tokens (that are not cryptocurrencies)
There are crypto tokens that are not cryptocurrencies. The following crypto tokens are generally not considered cryptocurrencies, even though they are cryptographic tokens on a blockchain:
- Utility tokens – provide access to a product or service, examples: Chainlink (LINK), Basic Attention Token (BAT);
- Governance tokens – grant voting rights in decentralized protocols, examples: Uniswap (UNI), Maker (MKR);
- Security tokens – represent digital assets representing ownership rights or asset value transferred to a blockchain. They are intended to be used similarly to traditional investment instruments like stocks or bonds.;
- Asset-backed (or Real-World Asset RWA) tokens - are digital representations of traditional financial or physical assets (like real estate, gold, or government bonds) recorded on a blockchain;
- Non-fungible tokens (NFTs) – represent ownership of digital or physical assets such as artwork, collectibles, music, or real estate. NFT is a digital deed of ownership or authenticity recorded on a blockchain (like Ethereum). A smart contract is the underlying code that makes an NFT work.
- DeFi tokens (decentralized finance tokens are used for lending, borrowing, decentralized exchanges, governance, and payments). DeFi tokens as blockchain-based digital assets are created by smart contracts, usually on platforms such as Ethereum, Solana, or BNB Chain.
Fungible tokens and NFTs (Non-Fungible Tokens)
Fungible tokens and NFTs (Non-Fungible Tokens) are two major categories of crypto tokens issued on blockchains. Both fungible tokens and NFTs are crypto tokens because they are blockchain-based digital representations. They differ mainly in whether each unit is interchangeable with another. Fungible tokens are the category most commonly associated with cryptocurrencies because they function as money, payment assets, or exchangeable digital assets. NFTs are generally not considered cryptocurrencies because they are unique assets rather than interchangeable monetary units.
Tokenization
Tokenization is the process of converting a real-world asset or existing right into a blockchain token: Asset → Tokenization → Crypto token. As a result of tokenization real assets are digitally represented using the blockchain technology, including rights and obligations linked to the associated value. Tokenization refers to creating any token on an already existing blockchain using a smart contract. Tokenization does not include the creation of a native cryptocurrency. Tokenization produces crypto tokens, not native cryptocurrencies - crypto coins. Tokenization can produce many different types of crypto tokens, some of which are classified as cryptocurrencies and others that are not. Thus, not every crypto token is a cryptocurrency, and not every cryptocurrency is created through tokenization.
Tokenization is the securitization of assets via blockchain. Tokenization is the process of issuing a digital, unique, and anonymous representation of a real thing. Crypto tokens can represent assets, including physical assets like real estate or art, financial assets like equities or bonds, intangible assets like intellectual property, or even identity and data. Tokenization creates assets on a blockchain for financial transactions that market participants can trust and share access to.
Tokens created through tokenization are crypto tokens (also called blockchain tokens) that digitally represent something—whether an asset, a right, a utility, or another form of value. Crypto tokens are created through tokenization by deploying a smart contract on an existing blockchain.
Tokenization can produce many different types of crypto tokens (both cryptocurrency and not cryptocurrency). Thus, tokenization can produce many different types of crypto tokens, some of which are classified as cryptocurrencies and others that are not. Examples of tokenized crypto tokens are utility tokens, governance tokens, stablecoins, security tokens, NFTs, DeFi tokens, and real-world asset (RWA) tokens.
Tokenization creates tokens on existing blockchain networks whereas native cryptocurrencies (crypto coins) are created by the blockchain protocol itself rather than through a tokenization process. Crypto token is created by a smart contract on an existing blockchain whereas native cryptocurrency is created directly by the blockchain protocol and exists independently of smart contracts.
Smart Contracts
Smart contracts are self-executing agreements stored on the blockchain, where the terms are written in code and automatically executed when predefined conditions are met. Smart contracts mark a significant shift in how agreements are formed, executed, and enforced in the digital era. Smart contracts are closely linked to cryptocurrencies.
The principal roles of smart contracts include:
- automating transactions (execute transactions automatically when contractual conditions are satisfied);
- enforcing agreements (ensure that contractual obligations are performed exactly as programmed);
- creating and managing crypto tokens (issue and manage fungible tokens (e.g., ERC-20 tokens) and create NFTs (e.g., ERC-721 or ERC-1155 tokens);
- defining the token's rules, including its creation (minting), transfer, ownership, and, if applicable, destruction (burning);
- enabling tokenization (represent real-world assets (real estate, securities, commodities, artwork) as blockchain-based digital tokens);
- supporting decentralized applications (dApps) (serve as the backend logic for blockchain applications);
- powering decentralized finance (DeFi) (enable decentralized lending, borrowing, exchanges, derivatives, staking, and liquidity pools);
- facilitating Decentralized Autonomous Organizations (DAOs) (automate governance rules, execute voting outcomes. Manage treasury funds).
Smart contracts have emerged as a revolutionary technology that is transforming the way we understand agreements. Smart contracts are a revolutionary aspect of blockchain technology, designed to automate and secure transactions without the need for intermediaries. Smart contracts represent the future of how agreements and transactions will be handled, offering an efficient solution for various digital processes.
Powered by blockchain, smart contracts offer an automated, transparent, and tamper proof alternative to traditional contracts, eliminating the need for third party intermediaries. By automating these processes, smart contracts speed up transactions, reduce the need for intermediaries (like a lawyer, bank, or broker) and therefore reduce costs and increase efficiency. Thus, they are not only self-executing and self-enforcing, but also simplify and speed up transactions. Therefore, benefits of smart contracts include: i) efficiency: automated processes save time by eliminating manual tasks; ii) security: Blockchain technology ensures data is immutable and transparent and iii) cost Reduction: No intermediaries mean lower costs for users.
Nick Szabo and Ethereum
The term “smart contract” was coined by computer scientist and legal theorist Nick Szabo. In 1994, he published a book, titled “Smart Contracts: Building Blocks for Digital Free Markets”, where he introduced the notion of smart contracts. At the time blockchain technology did not exist, so his ideas were not tested. In his book, Szabo described Smart Contracts as tools that “automate the execution of agreements, and ensure that all participants can view the outcome as quickly as possible, without the involvement of an intermediary.”
Smart contracts are commonly associated with cryptocurrencies. With the development of platforms like Ethereum in 2015, blockchain began to support smart contracts—digital contracts stored on a blockchain that are automatically executed when predetermined terms and conditions are met. Generally, smart contracts are simple, and function on an “if-this-then-that” basis. The smart contracts introduced by Ethereum are generally considered a fundamental building block for decentralized finance (DeFi) and non-fungible token (NFT) applications.
Digital Transactions
One of the most popular inventions today is the smart contract. Smart contracts are a game-changer for digital transactions. Smart contracts are just like contracts in the real world; the only difference is that they are completely digital.
Terms Written in Code
Smart contracts is a term used to describe computer code that automatically executes all or parts of an agreement and is stored on a blockchain-based platform. A smart contract is a digital contract where the terms of the agreement are written directly into lines of code. This code, stored on a blockchain, ensures that the contract’s conditions are met before it triggers any action. Smart contracts eliminate the need for third parties, to oversee transactions, which saves time and reduces costs. In fact, smart contract is a tiny computer program that is stored inside of the blockchain.
Self-executing Agreements
Smart contracts are self-executing agreements with terms directly encoded into software. They automatically enforce and execute these terms when predefined conditions are met. In the contemporary world (the early blockchain era), smart contracts are self-executing agreements with terms directly written into software. Smart contracts are self-executing software programs that automatically enforce agreed-upon terms once predefined conditions are met.
“if…then…”
Smart contracts are automatically executed when predetermined terms and conditions are met. This means that if a certain condition is met, then a specific action will take place automatically. Smart contracts work by the following simple “if…then…” statements, that are written into code on a blockchain. A network of computers executes the actions when predetermined conditions are met and verified. They automate agreements, executing conditions without human involvement. Generally, smart contracts are simple, and function on an “if-this-then-that” basis. This means that if a certain condition is met, then a specific action will take place automatically. This automation brings several advantages, including improved efficiency, lower costs, and the removal of third-party involvement.
Examples
A good example is how smart contracts can be used to buy goods from a vending machine. Imagine a vending machine that uses cryptocurrency instead of cash. When a person makes a payment using cryptocurrency, the smart contract gets a signal through the blockchain that the payment has been made. The machine checks if the right amount has been paid. Once this condition is confirmed, the smart contract automatically instructs the vending machine to release the item to the buyer. In this situation, the smart contract is working on the rule: “If payment is received, then release the goods.” Everything happens digitally without needing a cashier, seller, or third party
For example, in a simple real estate transaction, a smart contract could be designed to transfer digital ownership of a property token once payment is confirmed — all without human intervention. All of this happens automatically, based on how the code was written.
Significance and role of Smart Contracts
Today, smart contracts are widely used in decentralized finance (DeFi), digital asset transfers, supply chain management, insurance, tokenization, and decentralized autonomous organizations (DAOs).
Smart contracts are increasingly used in: a) real estate: automating rent payments or holding escrow; b) digital finance: triggering repayments or interest calculations; c) insurance: automating claims processing based on verified events; d) supply chain: releasing payments upon delivery confirmation; e) dispute resolution: enforcing digital settlement agreements or penalties.
Smart contracts have found use in various industries, from supply chain management and real estate to insurance and decentralized finance (DeFi) and non-fungible token (NFT) applications. They help streamline operations by reducing paperwork, cutting transaction fees, and enabling faster, more reliable transactions.
Smart contracts are one of the core innovations of blockchain technology. They enable blockchain networks to execute agreements and transactions automatically, without relying on a centralized intermediary. Their role extends far beyond simple payments, making them the technological foundation of decentralized finance (DeFi), tokenization, digital identity, and many other blockchain-based services.
Some experts believe blockchain and related technologies will disrupt many industries, including finance and law.
Law
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