The use of smart contracts based on blockchain in the business environment affected by the distrust caused by sanctions

Most of the disruption in law comes from other business sectors, the computer engineers or business people who use legal services and want to change the industry. One track in these changes belongs to the opportunities created by disintermediation. Smart contracts, one of the applications of distributed computing, provide an opportunity to use technology for ensuring a consistent application of rules and agreements. Thanks to automated performance, they are expected to re-duce the need to resort to legal or relational contract enforcement mechanisms e.g. seeking protection from legal institutions (courts, bailiffs) or social circles (family, community). The underlying technology makes it possible for parties to preserve their anonymity to a certain extent while contracting with each other and smart contracts seem to be able to function in precisely such contracting environments where parties, in the absence of reliable legal or social enforcement mechanisms, could engage in economic exchange anonymously. We claimed that this feature sets them apart as new modes of contracting governance particularly because they have the capacity to create trust in what we term no-trust contracting environments. We explained how these environments differ from legal or relational contracting environments and why using them in such environments is the path to un -leash the full potential of smart contracts. In essence, for contracting in no-trust environments, there is a need for an enforcement mechanism, which provides sufficient safeguards for contracting.