Digital technology-based solutions for enhanced effectiveness of secured transactions law:the road to perfection? Articles uri icon

publication date

  • May 2018

start page

  • 21

end page

  • 44


  • 1


  • 81

International Standard Serial Number (ISSN)

  • 0023-9186


  • This article has two objectives. First, the article examines how the
    incorporation of specific digital technologies to the different stages of secured
    transactions could mitigate the imperfections of the secured transactions system
    and enhance its effectiveness. To begin with, an envisioned integrated ecosystem
    of smart property and self-executed smart contracts for security agreements
    could effectively reduce verification and monitoring costs. Next, a fully
    automatic electronic—maybe, blockchain-based—registry fed by a (IoT)
    network of interconnected assets would dramatically improve the accuracy of
    consistently-updated registered information. Furthermore, implanted AI-based
    solutions could be used to detect changes of circumstances and deviations from
    agreed provisions. Finally, AI-guided smart contracts could assist in decisionmaking
    to prevent breaches and automatically enforce remedies.8 Second, given
    this backdrop, the article focuses on some of the legal implications for secured
    transactions legal system and assesses whether the current legal framework is
    prepared to face the challenges inherent to these new technologies, to exploit the
    multitude of opportunities presented by the technologies, and to manage the
    involved risks. Alternatively, if the current system is incapable of taking on this
    challenge, this article will consider an appropriate legal response.


  • Law


  • digital technology; collateral security; blockchains; internet of things; commercial law