Winner Of The 2016 Nobel Prize In Economics Points Out Blockchain Smart Contract Weaknesses
2016 Nobel Laurette Claims Smart Contracts Are Not The Solution for Everything
Global cryptocurrencies often differ in terms of their objectives as well as how they function. ETH or Ethereum is the second biggest digital asset globally. The digital asset is renowned for one primary factor—its smart contracts options. It is a feature introduced by the crypto and which has started being adopted by other cryptocurrencies.
The team behind ONT (Ontology), which is a distributed network had at some point made claims that smart contract security was slowly becoming a trending topic. This was in relation to the ever-evolving blockchain space.
Skepticism On Smart Contracts
Despite the smart contracts receiving rave reviews and feedback, this sentiment is not shared by everyone in the crypto verse. Oliver Hart, for instance, is the Nobel Laurette who won the award in 2016 in the Economics category. His award was based on the work he was performing with regards to contract theory.
Oliver recently made headlines when he made a suggestion that seemed to allude to the fact that Smart Contracts were not everything they had been hyped to be by blockchain platforms. The Nobel Laurette claimed that the contracts did not address all the issues pertaining to large scale contractual agreements.
According to him, the outlines of the Smart Contracts are quite convenient taking into consideration the fact that they are automatically executed. He goes on to state that their basic outlines suggest that the contracts are not a cure or solution for all issues plaguing the crypto verse.
Oliver stresses that the contracts do not address conditions or problems where a smart contract may have been drawn out to cover a long-term situation. This is with regards to parties that may have been in a long-term economic association.
He stated that developers were busy trying to anticipate what was likely to occur in the future, a fete that is a bit hard to achieve. He holds the opinion that it is difficult to write a contract that will anticipate future events. The problem lies in the fact that the future will always remain uncertain.
There exist many things that can occur which people may not be able to anticipate. Additionally, a majority of these things are hard to predict, he goes on in his statement. Oliver is convinced that smart contracts cannot solve such problems as of now, especially taking into account the high uncertainty factors.
Hart stated that the long term smart contracts should be about communication between parties, as opposed to drafting a contract or agreement beforehand. Both parties need to be on the same page.
It would make it easier for both parties to accept the result if an unexpected scenario were to arise as opposed to having an automated machine set up the outcome. It is important to note that the declaration made by Hart came with a crucial disclaimer. He admitted that he did not know much about Bitcoin, blockchain, and smart contracts from a practical point of view.