Fed Bank of Atlanta on Smart Contracts: They Will Change Legal Practices
The executive director of the Federal Bank of Atlanta’s Center for Financial Innovation and Stability released a paper on smart contracts and their potential to change traditional legal proceedings, finding: “In many circumstances, smart contracts may eventually be a more efficient way of contracting than traditional paper contracts.”
The Cointelegraph reports that Larry Wall, in his paper titled “Smart Contracts in a Complex World,” explored the inefficiency of paper contracts in legal proceedings, which is primarily caused by ambiguity in the language of the law.
“The majority of contracts that are formed between two parties to ensure the fulfilment of the established agreements are often incomplete, because of the difficulty in stating every possible situation where the contract can be utilized,” according to the Cointelegraph article.
“Wall believes smart contracts demonstrate a series of major advantages of paper contracts,” it continues.
