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The blockchain is the court (and bank, and law). Each investor and executive and the corporation itself has its own address, and control over only that address
by nostrademons 7y ago
The blockchain is the court (and bank, and law). Each investor and executive and the corporation itself has its own address, and control over only that address. As with regular corporations, investors transfer cash from their own address to the corporation's address to fund it. Unlike regular corporations, repayment can happen automatically, with no lawyers needed to enforce it - a smart contract simply deducts the requisite payment from the corporation's address to the creditor's address every month, and triggers liquidation proceedings if the required amount is not present. Since said smart contract would have access only to the corporation's bank account, there is no risk of a creditor seizing your personal assets.
- etaioinshrdlu 7y agoI like to say that smart contracts are basically the opposite of legal contracts. Legal contracts are not self-executing but carry the weight of the legal system. Smart contracts are self executing but if a mistake is made or the contract is buggy it is essentially moot legally.
- philwelch 7y agoWhen my "corporation" goes broke, my creditors can still go to an actual court of law. And if I don't have a real-world LLC or corporation to provide limited liability, the court will rule that I am liable for those debts. Even if the "contract" was only denominated in some sort of cryptocurrency, that has exactly as much legal bearing as a contract obligating me to deliver copper: if I don't deliver the copper, the court will award damages in legal tender. Frankly, this smells a lot like some straight up sovereign-citizen-tier pseudolaw. If you actually try to do business this way, you're going to be in for a rude awakening when the actual court system still ends up exercising jurisdiction over you.