3 ms·

Suppose we two make a "smart contract": I say I pay 100k, you say you sell me a functional car. Let's say you then deliver a broken car. Now what? How can't we

by pgesmm 5y ago

Suppose we two make a "smart contract": I say I pay 100k, you say you sell me a functional car. Let's say you then deliver a broken car. Now what? How can't we have disputes, we did a "smart contract"?

mindcandy 5y ago
You and I can agree on an independent 3rd party as a notary. If within a six months of the sale both you and the notary sign off that the deal was not fulfilled (the car is junk), you get the $100k back. That means I can’t spend the $100k directly for six months. But, I can easily take out a six month loan against it. That way it’s liquid for me and still safe for you. The loan agent is taking on the risk in exchange for the interest.
- pgesmm 5y ago
  Good point, but are cryptocurrencies then needed (adding currency trafo risks)? Further, how do you select the trusted 3rd party--can't you get screwed here if there are "multiple" 3rd party notaries? As far as I can see, you can't get rid of some "central" authority
  - mindcandy 5y ago
    At some point you have to trust somebody. Who is more trustworthy for your situation: a government agent, a financial officer or some reputation service? Think about that as someone in a third world country...
    - pgesmm 5y ago
      It's not that simple. Have you ever had to do anything with real legal complex matters? For example for patent suits, I am not sure if I didn't prefer a qualified and experienced set of judges over an anonymous hobby crypto arbitration court.. Don't kid yourself, you can get (and will) screwed in every which way. I also don't know much, but I think there is a lot a lot of illusion going on about "smart contracts"
- acdha 5y ago
  What value does the smart contract add in this situation? Every part of that arrangement could has been done for thousands of years. What are you really getting to balance the extra expense and risk required to use a blockchain? If the answer is “corrupt third world countries” ask yourself why the demand is driven by affluent Americans trying to sell things, and how effective “but it’ll go down on your permanent record! In a different country!” will be when the local capo’s buddy tells the notary the car was fine when you bought it.

by pgesmm 5y ago

mindcandy 5y ago

You and I can agree on an independent 3rd party as a notary. If within a six months of the sale both you and the notary sign off that the deal was not fulfilled (the car is junk), you get the $100k back. That means I can’t spend the $100k directly for six months. But, I can easily take out a six month loan against it. That way it’s liquid for me and still safe for you. The loan agent is taking on the risk in exchange for the interest.

pgesmm 5y ago
Good point, but are cryptocurrencies then needed (adding currency trafo risks)? Further, how do you select the trusted 3rd party--can't you get screwed here if there are "multiple" 3rd party notaries? As far as I can see, you can't get rid of some "central" authority
- mindcandy 5y ago
  At some point you have to trust somebody. Who is more trustworthy for your situation: a government agent, a financial officer or some reputation service? Think about that as someone in a third world country...
  - pgesmm 5y ago
    It's not that simple. Have you ever had to do anything with real legal complex matters? For example for patent suits, I am not sure if I didn't prefer a qualified and experienced set of judges over an anonymous hobby crypto arbitration court.. Don't kid yourself, you can get (and will) screwed in every which way. I also don't know much, but I think there is a lot a lot of illusion going on about "smart contracts"
acdha 5y ago
What value does the smart contract add in this situation? Every part of that arrangement could has been done for thousands of years. What are you really getting to balance the extra expense and risk required to use a blockchain? If the answer is “corrupt third world countries” ask yourself why the demand is driven by affluent Americans trying to sell things, and how effective “but it’ll go down on your permanent record! In a different country!” will be when the local capo’s buddy tells the notary the car was fine when you bought it.