"A smart contract is written in program code, in which the logic of the program's execution enforce the terms of the contract. Smart contracts reduce costs by o

"A smart contract is written in program code, in which the logic of the program's execution enforce the terms of the contract. Smart contracts reduce costs by orders of magnitude, leading to a more cooperative world." A. Most written and oral contracts aren't terrible expensive, especially when there is no disagreement between parties. I want to rent a property, I sign a lease and obey its terms. There's no extra cost unless there's some disagreement. B. The situation where there is disagreement between parties is where things can get sticky. But with "smart contracts" being just automatically executing contracts, I can't see any way they really solve the problem. A smart contract can't by itself verify that goods are delivered, that the landlord has maintained a habitable space or that I am not destroying the property - except with third parties, who may be reliable but aren't automatically reliable and are something an ordinary contract can employ. C. The legal system now actually takes into account the degree of sophistication of the parties involved in a contract. Contracts that tend to effect legally naive, average people generally don't allow unconsciable terms[1]. On the other hand, in most sophisticated markets nearly everything can be up for grabs. Which is to say the legal system provides a significant umbrella of protection for most people. Contracts that automatically execute would rip that away - except they wouldn't, because the legal system isn't going away any time soon. A person's ability to create and enforce a "smart contract", an automatically executing financial effect, is limited to what is ... legal. However automatic your effect is, you will find lawyers involved if your effect also isn't legal. [1] https://legal-dictionary.thefreedictionary.com/unconscionable https://legal-dictionary.thefreedictionary.com/unconscionabl...