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{{A| | {{A|tech|}}Smart contracts cleave to [[Lawrence Lessig]]’s coinage [[Code is Law]] — you code legal rights into the electronic operating parameters between the parties: they physically constrain what you do to each other, rather than being abstract metaphysical considerations that float above your messy interactions which may or may not reflect those abstract terms. | ||
Notwithstanding breathless [[distributed ledger technology]] chat to the contrary, we’ve had [[smart contract|smart contracts]] for a while: wherever counterparties interact electronically (as in collateral posting arrangements under a [[CSA]] for example: it is the algorithms and thresholds set in the technology, rather than the abstract ones set out in paper, which govern what, when and how much collateral the parties exchange: it is hardly a big leap to ditch the need for abstract textual reflections of operatring parameters in separately executed "legal terms". | Notwithstanding breathless [[distributed ledger technology]] chat to the contrary, we’ve had [[smart contract|smart contracts]] for a while: wherever counterparties interact electronically (as in collateral posting arrangements under a [[CSA]] for example: it is the algorithms and thresholds set in the technology, rather than the abstract ones set out in paper, which govern what, when and how much collateral the parties exchange: it is hardly a big leap to ditch the need for abstract textual reflections of operatring parameters in separately executed "legal terms". |