kaal:claim:3405401-017

Smart contracts leave counterparty information asymmetries unresolved: the tenant of a smart property cannot fully know whether the landlord is providing a worthy property, and the landlord cannot know in advance how likely the tenant is to destroy the premises.

Source quote, verbatim
In our example above, the tenant of the smart property cannot fully know if the landlord is providing a worthy property. In turn, the landlord cannot know in advance how likely the tenant will destroy the premises.
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
Classification

failuresupport: arguedfailure: unresolved-information-asymmetryfamily: information-asymmetrydisclosurereputationrisk-and-incentives

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