Automating smart contracts under the code is law paradigm incentivizes unethical behavior by enabling anonymous, opportunistic action, which reduces repeat business and undermines the minimization of transaction costs.
Source quote, verbatim
The automation of smart contracts under "code is law" incentivizes unethical behavior by enabling anonymous, opportunistic actions, reducing repeat business and undermining transaction cost minimization.
From
Furrer Andreas, Wulf A. Kaal, Universal Digital Law Codex (UDLC) Building the Legal Infrastructure for the Digital Era (2025), 5.1 Automation in Code is Law, p. 31 https://ssrn.com/abstract=5554218 · source PDF
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
Holds when
anonymous or pseudonymous counterparties
automated execution with no external legal recourse
contestskaal:claim:3405401-005 Smart contracts benefit business by simplifying and automating transactions, removing transaction costs, and c...
extendskaal:claim:3782203-022 Despite its alluring simplicity, the Code is Law credo taken as an absolute is not an efficient solution for b...
contestskaal:claim:3405401-007 The inherent mathematical logic of computerized code in smart contracts can clarify the parties' intent optima...
contestskaal:claim:3405401-006 Automation in smart contracting reduces negotiation between counterparties to near minimal levels and removes ...
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