Smart contracts

Smart contracts are a concept that has been around for more than 20 years. This concept, which has been used to explain the working logic of vending machines, has again begun to be discussed with the emergence and widespread of blockchain technology. The fact that smart contracts established over the blockchain are not subjected to any central power and that the system executes provisions of contract have brought profound innovations to the law of contracts. Hence it needs to be examined. Although the legal nature of smart contracts is controversial, they should be considered as contracts. Because, according to the Article 1 of the Turkish Code of Obligations Act Number 6098, mutual and compatible declarations of will are sufficient for establishing a contract. All smart contracts that meet this requirement must be legally considered as contracts. Smart contracts can be used in any field and industry where code and digitalization take place. Smart contracts, which perform the coded actions precisely and without any intermediary, are used or steps have been taken to start using them in many areas, given the advantages they provide. Smart contracts, which destroy many points that create doubt for the parties of the contract, will soon enter our daily lives and their importance will increase in parallel with this. Based on this foresight, it is crucial to examine where smart contracts stand in the legal plane. Keywords: Blockchain, smart contracts, execution, legal intervention