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Eli5: How do smart contracts change anything when their enforcement has to be performed by legacy systems? In my country, drafting contracts is hardly a proble
by puranjay 8y ago
Eli5: How do smart contracts change anything when their enforcement has to be performed by legacy systems?
In my country, drafting contracts is hardly a problem. But if someone breaches your contract, good luck trying to get the law to act on it quickly enough
- acover 8y agoOne way is that possession is handled automatically and immediately. Also, the terms of the contract are not open to interpretation.
- darawk 8y agoFor one, there are certain classes of contract that can be enforced entirely on-chain. Specifically, those having to do with crypto-assets themselves and, possibly, any asset ownership represented by the crypto-tokens. For two, smart contracts are code, and as such have to be more formally specified than a traditional english-language contract. This has benefits and also drawbacks, but for certain applications it may be useful.
- smokeyj 8y agoBasically by not relying on legacy systems. Collateralize your contracts on-chain with an agreed arbitrator in the contract. The other solution is to be locally compliant. Cities are looking to use “blockchain” to issue “micro-bonds”. I’m sure you can draft legalese to refer to data on a blockchain. See blockchain notary services.