kaal:claim:3125822-032

Parties to a smart contract must avoid asymmetric encumbrance of assets, because in an anonymous blockchain environment where assets cannot be recovered from parties further down the transaction tree, an asymmetrically bound party can unfairly exert power by triggering a dispute.

Source quote, verbatim

Therefore, it is incumbent upon the parties not to enter into an asymmetric contract of bound assets, lest one party may unfairly exert power over the other by encumbering assets in a dispute.

From

Craig Calcaterra, Wulf A. Kaal, Vlad Andrei, Blockchain Infrastructure for Measuring Domain Specific Reputation in Autonomous Decentralized and A (2018), 7.2.8.1 Symmetric encumbrances, p. 32
https://ssrn.com/abstract=3125822 · source PDF

Cite as

Craig Calcaterra, Wulf A. Kaal, Vlad Andrei, Blockchain Infrastructure for Measuring Domain Specific Reputation in Autonomous Decentralized and A (2018). SSRN: https://ssrn.com/abstract=3125822

Holds when

anonymous or pseudonymous counterparties
assets must be bound in the smart contract

Classification

conditionsupport: arguedfailure: asymmetric encumbrance abusefamily: smart-contract-rigiditysystemic-risklaw-and-legal-systems

Verify

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Attestation record: colloquium/attestations/62752b12b3a446b8...json
Verify the binding yourself: curl -s https://wulfkaal.github.io/claims/3125822-032.md | sha256sum