qantumtbfmir
4 months ago  Karma: 278
Do you think that smart contracts should be legally binding?

Do you think that smart contracts should be legally binding?

en
#smart contracts
qantumtbfmir
4 months ago  Karma: 278
Do you think that smart contracts should be legally binding?

Do you think that smart contracts should be legally binding?

en
#smart contracts

3 ANSWERS
stephen.lee.jackson+github86
4 months ago Karma: 342

Probably not.

A problem arises that the law isn't uniform across the globe, and it's very difficult to enforce the law in different jurisdictions.

It is also quite difficult to prove that the transaction originated from a particular person (even if you were able to map an address to a person, someone else could have access to the private key (perhaps a hacker with malicious intent)).

Some legal issues often have a degree of flexibility that don't necessarily lend themselves to being as binary as a smart contract is; and may require human intervention to review the particular situation.

EOS has shown us that a bunch of developers trying to re-invent a legal system doesn't really work; or will take a long time to get right.

Probably not.

A problem arises that the law isn't uniform across the globe, and it's very difficult to enforce the law in different jurisdictions.

It is also quite difficult to prove that the transaction originated from a particular person (even if you were able to map an address to a person, someone else could have access to the private key (perhaps a hacker with malicious intent)).

Some legal issues often have a degree of flexibility that don't necessarily lend themselves to being as binary as a smart contract is; and may require human intervention to review the particular situation.

EOS has shown us that a bunch of developers trying to re-invent a legal system doesn't really work; or will take a long time to get right.

kayden.hughes
4 months ago Karma: 1622

Smart Contracts are programs designed to automate the execution of agreements. Simply put, if a specific condition is met, an action is executed. Thus, smart contracts the means to automate the obligations of two or more parties without the need for a central authority or a third party.

So far so good.

However, there are important issues that need to be considered. First, a simple bug in code can lead to consequences that are hard to manage. Since the blockchain is immutable, the effects can easily escalate. Second, don't forget that blockchain's nature is global. Because it spans across many jurisdictions, each one having its own mechanism for dispute resolution, lots of jurisdictional issues can arise. These could be even more complicated to solve than the ones we have to deal with today.

To conclude- smart contracts are helpful in many ways but I don't think they should be legally binding.

Smart Contracts are programs designed to automate the execution of agreements. Simply put, if a specific condition is met, an action is executed. Thus, smart contracts the means to automate the obligations of two or more parties without the need for a central authority or a third party.

So far so good.

However, there are important issues that need to be considered. First, a simple bug in code can lead to consequences that are hard to manage. Since the blockchain is immutable, the effects can easily escalate. Second, don't forget that blockchain's nature is global. Because it spans across many jurisdictions, each one having its own mechanism for dispute resolution, lots of jurisdictional issues can arise. These could be even more complicated to solve than the ones we have to deal with today.

To conclude- smart contracts are helpful in many ways but I don't think they should be legally binding.

paul_musgrave
4 months ago Karma: 400

Certainly not.

Here are two important reasons:

  1. Contracts intentionally contain subjective determinations
    Just try to read a b2b contract and count how many times the term "reasonable" has occurred. Then, do the same exercise for "best efforts" and "in good faith". The vast majority of b2b contracts are not transactional but relational. On the other side, computers work with zeros and ones. Think of using oracles to mitigate it? It won't work. This kind of issues requires judgment calls. Oracles can't do that.

  2. Smart contracts are vulnerable
    No matter how thoroghly audited a smart contract is or how skilled the developers are, the risk of a vulnerability always remained. We have seen this happening in many cases.

Certainly not.

Here are two important reasons:

  1. Contracts intentionally contain subjective determinations
    Just try to read a b2b contract and count how many times the term "reasonable" has occurred. Then, do the same exercise for "best efforts" and "in good faith". The vast majority of b2b contracts are not transactional but relational. On the other side, computers work with zeros and ones. Think of using oracles to mitigate it? It won't work. This kind of issues requires judgment calls. Oracles can't do that.

  2. Smart contracts are vulnerable
    No matter how thoroghly audited a smart contract is or how skilled the developers are, the risk of a vulnerability always remained. We have seen this happening in many cases.

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