Smart contracts: Terminology, technical limitations and real world complexity

If one is to believe the popular press and many “technical writings,” blockchains create not only a perfect transactional environment but also obviate the need for banks, lawyers and courts. The latter will soon be replaced by smart contracts: unbiased and infallible computer programs that form, per...

Full description

Saved in:
Bibliographic Details
Main Author: MIK, Eliza
Format: text
Language:English
Published: Institutional Knowledge at Singapore Management University 2017
Subjects:
Online Access:https://ink.library.smu.edu.sg/sol_research/2341
https://ink.library.smu.edu.sg/context/sol_research/article/4298/viewcontent/MIK_SmartContracts_2017_afv.pdf
Tags: Add Tag
No Tags, Be the first to tag this record!
Institution: Singapore Management University
Language: English
id sg-smu-ink.sol_research-4298
record_format dspace
spelling sg-smu-ink.sol_research-42982017-11-09T05:17:25Z Smart contracts: Terminology, technical limitations and real world complexity MIK, Eliza If one is to believe the popular press and many “technical writings,” blockchains create not only a perfect transactional environment but also obviate the need for banks, lawyers and courts. The latter will soon be replaced by smart contracts: unbiased and infallible computer programs that form, perform and enforce agreements. Predictions of future revolutions must, however, be distinguished from the harsh reality of the commercial marketplace and the technical limitations of blockchains. The fact that a technological solution is innovative and elegant need not imply that it is commercially useful or legally viable. Apart from attempting a terminological “clean-up” surrounding the term smart contract, this paper presents some technological and legal constraints on their use. It confronts the popular claims concerning their ability to automate transactions and to ensure perfect performance. It also examines the possibility of reducing contractual relationships to code and the ability to integrate smart contracts with the complexities of the real world. A closer analysis reveals that smart contracts can hardly be regarded as a semi-mythical technology liberating the contracting parties from the shackles of traditional legal and financial institutions. 2017-10-01T07:00:00Z text application/pdf https://ink.library.smu.edu.sg/sol_research/2341 info:doi/10.1080/17579961.2017.1378468 https://ink.library.smu.edu.sg/context/sol_research/article/4298/viewcontent/MIK_SmartContracts_2017_afv.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection Yong Pung How School Of Law eng Institutional Knowledge at Singapore Management University Blockchains distributed ledgers bitcoin smart contracts contract law Commercial Law Contracts E-Commerce Internet Law
institution Singapore Management University
building SMU Libraries
continent Asia
country Singapore
Singapore
content_provider SMU Libraries
collection InK@SMU
language English
topic Blockchains
distributed ledgers
bitcoin
smart contracts
contract law
Commercial Law
Contracts
E-Commerce
Internet Law
spellingShingle Blockchains
distributed ledgers
bitcoin
smart contracts
contract law
Commercial Law
Contracts
E-Commerce
Internet Law
MIK, Eliza
Smart contracts: Terminology, technical limitations and real world complexity
description If one is to believe the popular press and many “technical writings,” blockchains create not only a perfect transactional environment but also obviate the need for banks, lawyers and courts. The latter will soon be replaced by smart contracts: unbiased and infallible computer programs that form, perform and enforce agreements. Predictions of future revolutions must, however, be distinguished from the harsh reality of the commercial marketplace and the technical limitations of blockchains. The fact that a technological solution is innovative and elegant need not imply that it is commercially useful or legally viable. Apart from attempting a terminological “clean-up” surrounding the term smart contract, this paper presents some technological and legal constraints on their use. It confronts the popular claims concerning their ability to automate transactions and to ensure perfect performance. It also examines the possibility of reducing contractual relationships to code and the ability to integrate smart contracts with the complexities of the real world. A closer analysis reveals that smart contracts can hardly be regarded as a semi-mythical technology liberating the contracting parties from the shackles of traditional legal and financial institutions.
format text
author MIK, Eliza
author_facet MIK, Eliza
author_sort MIK, Eliza
title Smart contracts: Terminology, technical limitations and real world complexity
title_short Smart contracts: Terminology, technical limitations and real world complexity
title_full Smart contracts: Terminology, technical limitations and real world complexity
title_fullStr Smart contracts: Terminology, technical limitations and real world complexity
title_full_unstemmed Smart contracts: Terminology, technical limitations and real world complexity
title_sort smart contracts: terminology, technical limitations and real world complexity
publisher Institutional Knowledge at Singapore Management University
publishDate 2017
url https://ink.library.smu.edu.sg/sol_research/2341
https://ink.library.smu.edu.sg/context/sol_research/article/4298/viewcontent/MIK_SmartContracts_2017_afv.pdf
_version_ 1772829275657863168