kaal:claim:3405401-016

Trust between counterparties in decentralized systems can only limitedly be assured by smart contracts, because the contract cannot verify the underlying qualities or future conduct of the parties.

Source quote, verbatim

Trust between counterparties in decentralized systems can only limitedly be assured by smart contracts.

From

Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019), V. Trust Problem, p. 6
https://ssrn.com/abstract=3405401 · source PDF

Cite as

Wulf A. Kaal, Decentralized Commerce – A Primer on Why Decentralized Reputation Verification Systems Are Needed (2019). SSRN: https://ssrn.com/abstract=3405401

Holds when

decentralized systems with anonymous counterparties

Classification

failuresupport: arguedfailure: limited-trust-assurancefamily: information-asymmetryreputationsmart-contractsrisk-and-incentivesdecentralization

Related claims

supersedes kaal:claim:3227967-027 In a digital world trust can be embedded directly in software code, and recent interest in smart contracts sug...

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