Smart questions on smart contracts
Are smart contracts smart?
A smart contract as implemented by the SCC combines a natural language legal document expressing the intent of the parties combined with specific functions related to fulfillment of the agreement that are assigned to executable computer code. The contract is ’smart’ in that it self-executes once the parties authorize it with their signatures. Ensuring intended outcomes involves significant complexity, not only from a technical perspective, as the contracts and the outcomes can only ever be as smart as the intent and agreement of the parties.
Complex contract logic translates into complex computer code which is difficult to audit for non-experts. Signing a self-executing agreement that You are not sure of, should be a daunting prospect.
How do You establish your rights under law and how do You know that the agreements you enter will ultimately be binding? Which court and what law will You look to?
Disputes happen. No agreement can capture all eventualities and sometimes the parties fail to perform their obligations. How do You know how your disputes will be resolved?
You do not want to participate in testing, do you? You do not want to have your business disrupted by technology which is not ready to be deployed? What will make you comfortable with the deployment plan?
What about all the other systems that you have in place and have invested in? You already have too many informations silos, you would not want to have another one?