Obligations under a smart contract can be adjusted to developments in the real world, such as a change in the rate of interest on a floating rate .. Read more loan, or the occurrence of a natural disaster under an insurance contract, or simply the need to re-stock the refrigerator (although in complex cases, this can require the intervention of a so-called oracle). Smart contracts are less susceptible to contractual ambiguity, machine-readable and modular, allowing them to be broken into pieces which can be reassembled easily for a different purpose. They can also clear some of the most intractable barriers to commerce: time, language and distance. All of which suggests smart contracts can reduce transaction and monitoring costs substantially. However, smart contracts have not yet become part of the mental furniture of the traditional financial services industry. The panellists at this Future of Finance webinar will discuss whether smart contracts will fulfil the dreams of blockchain idealists, achieve a modus vivendi with existing social technologies, or join the ranks of failed techniques.
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