# kaal:claim:5554218-005

**Claim.** Posting cryptocurrency to escrow like smart contracts is often uneconomic compared with traditional financial instruments, and this inefficiency undermines the practical utility of smart contracts as a vehicle for consideration, especially in high value or long term agreements.

**Type.** failure  **Support.** argued

**Holds when.**

- high value agreements
- long term agreements
- escrow style locking of crypto collateral

**Source quote.**

> posting cryptocurrency to escrow-like smart contracts is often uneconomic compared to traditional financial instruments.10 This inefficiency challenges the practical utility of smart contracts as a vehicle for consideration, particularly in high-value or long-term agreements.

**From.** Furrer Andreas, Wulf A. Kaal, *Universal Digital Law Codex (UDLC) Building the Legal Infrastructure for the Digital Era* (2025), 2.1.2 Consideration and Economic Viability, page 7

**Cite as.** Furrer Andreas, Wulf A. Kaal, Universal Digital Law Codex (UDLC) Building the Legal Infrastructure for the Digital Era (2025). SSRN: https://ssrn.com/abstract=5554218

**Verify.** sha256 of source PDF `55738b4035a91b70aa2ddaa127552fe4b373ec641afee2719fbdcabebdcbea44` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Andreas%20and%20Kaal%20-%202025%20-%20Universal%20Digital%20Law%20Codex%20%28UDLC%29%20Building%20the%20Legal%20Infrastructure%20for%20the%20Digital%20Era.pdf

**Failure mode.** Time value of money defeats escrow consideration  (family: adoption-and-usability-barrier)

**Topics.** smart-contracts, law-and-legal-systems

**Keywords.** consideration, escrow, time-value-of-money, smart-contracts, contract-law

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