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I never hear "code is law" from defi protocols, their ToS, or really from anyone. It's only the detractors of Web3 who tout this false logic of "code is law" so
by sushid 4y ago
I never hear "code is law" from defi protocols, their ToS, or really from anyone. It's only the detractors of Web3 who tout this false logic of "code is law" so I guess you're screwed.
Examples of code NOT being the law: Some defi protocols have made those affected by a hack/loophole whole again with their own funds. Some defi protocols explicitly exclude certain jurisdictions like the US from accessing their protocol. Surely if they all belived "code is law" they wouldn't give a fuck, right?
- SamBam 4y ago> Examples of code NOT being the law: Some defi protocols have made those affected by a hack/loophole whole again with their own funds. That's a terrible example. If the code really weren't law, they'd reverse the transaction, or force the hacker to give back the money, like a court could. Since the code is law they're stuck, and so just hand the victim some money out of their own pockets, to try and eliminate bad press and keep people's trust.
- sushid 4y agoThat's because the transaction isn't reversible/is hard to trace the funds. It's not that "code is law" in the sense that smart contracts are extralegal. They would and should have legal recourse if the person were caught. And coins like USDC can blacklist addresses and comply with regulatory asks. It's hard to buy your argument that smart contracts are extralegal when there are operators that comply with legal authority.