# kaal:claim:3606663-032

**Claim.** Because human interactions in business are often too complex to be fully codified objectively, DeFi systems that exclude all non objective information from their analysis do not fully utilize available information, which limits their efficiency and usefulness.

**Type.** mechanism  **Support.** argued

**Holds when.**

- DeFi products analyzing only objectively recordable and verifiable inputs
- complex commercial interactions

**Source quote.**

> However, human interaction in business are often too complex to be fully codified objectively. By excluding all non- objective information from the product analysis, all available information may not be fully utilized which limits efficiency and potential usefulness of DeFi

**From.** Kaal, *Digital Asset Market Evolution* (2020), c) Growth Limitations, page 70

**Cite as.** Kaal, Digital Asset Market Evolution (2020). SSRN: https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3606663

**Verify.** sha256 of source PDF `d1d4a15a293b715bb6a5a32e689f59c3a1587915039ba9a1cf4eeb8ee2a1e57c` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202020%20-%20Digital%20Asset%20Market%20Evolution.pdf

**Failure mode.** non codifiable information is discarded  (family: smart-contract-rigidity)

**Topics.** defi, economics

**Keywords.** defi, codification, information-loss, efficiency, growth-limitations

**Canonical form.** This markdown file is the canonical hashed representation of the claim. Its sha256 is the content hash used for attestation.