Smart contracts are anti-contracts. They actively undermine the basis of a contract, which is to build trust and build sociality. They don’t assume good faith with consequences for breaches, they assume bad faith and create compulsion in compliance. They’re what you get if you have no society. They need burning with fire
Thats a strange way to consider the basis of a contract. When I sign a contract for say house insurance, I'm not trying to build trust or get friendly with the insurance company, I'm trying to make sure that if my house burns down, I get the cash to buy a new one.
If my house burns down and the insurance company turns round and goes
"well, you see, we've been friends for a long time, mate, and I trusted you not to let your house burn down, so maybes I'm not actually going to give you the cash, but I still want to be your friend" then have all the hassle of their complaints procedure/ombudsman/court to get the contract enforced, I'm not really going to be thinking "
all that trust we built up and the friendship we made and they betray me like this", I'm going to be thinking "
where the fuck am I going to live, now that these fuckers have breached the contract and landed me with all this hassle"
With a smart contract, if I can prove to that contract that house is burnt down, it will immediately remove the appropriate amount of money from the insurance company and give it to me....instantly.
A smart contract is more than a promise. A promise contains within it mutual trust. A smart contract does not need trust, because there is no path other than the prescribed one.
For banking contracts, this may be largely moot. But for other contracts, the difference is chalk and cheese. Contracts build societies, smart contracts are the end of society.
Traditional contracts allow loopholes and technicalities, companies pay lawyers a great deal of money to get these put in in a manner that will reduce their liability, the contract writer, usually the more powerful of the two parties contracting enforces their conditions, get out clauses, demands on the other, Most people dont even read the contracts that they sign, far less negotiate over terms. Can you honestly say that you read every element of your credit card agreement when you signed up for it?
Traditional contracts build societies that advantage those with the capital to draw up the terms.