Let us illustrate the description of the legal relations in more detail

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As we previously postulated, the main function of the system is the creation, modification and termination of legal relations between users of the system with simultaneous fixation in the form of permanent entries in the distributed registry. Creating legal relations is possible as a result of the Entity’s active actions when using the Platform.

We consider the relationship as a process of occurrence of the rights and obligations of the subjects of the relationship regarding the object of the relationship in accordance with the norms of law governing these relations.

As an abstract concept, a process has an entrance space, a state change, and an exit space.


Diagram: the process of the legal relations occurrence

The input space includes Entities (not yet entered into a legal relations), objects (not yet involved in this legal relations), legal norms regulating the order of occurrence of this legal relations, Entity’s Will - parties to the legal relations, various environmental parameters (system environment).

A change (in terms of a process) is the content of a legal relations — a change in the Entity’s rights and obligations in the legal relations.

The output is the Entity’s subjective rights and obligations regarding the objects of law. Of course, formally, the output also includes Entities (with new rights and obligations) and objects (which became the object of a relationship, for example, those that have become the subject of a transaction).

Outputs of one process can be inputs of other processes, forming a network of processes or, in our case, a network of legal relations. Since we are dealing with completed processes (and time is irreversible), this network is directed towards past processes and is a directed acyclic graph.


Diagram: legal relations network (acyclic graph).

At the same time, if a legal relationship is built on the basis of already existing legal relations, then it uses the unspent outputs of this legal relationship allowed for use, which is very close to the UTXO model.