Thread by @TaylorPearsonMe

1/ Been thinking about how to create a framework for the impact of blockchain-based smart contracts.

Here is what I have so far:

2/ The two major variables seem to be

1. The reliability of oracles
2. The scale/unit of censorship resistance

3/ With very reliable oracles and high levels of scale with minimal or no sacrifices to censorship resistant, you can write a smart contract for anything which can be specified in code.

4/ As oracles become less reliable, you are limited to digital and/or on-chain data.

I think maybe there are 3 tiers of oracle data
1. On-Chain (best)
2. Digital
3. Meat Space (worst)

5/ The more you have to sacrifice censorship resistance to get scale, you are limited to high value use cases where it makes sense to pay the high txn costs to get censorship resistance (if you don't need censorship resistance, you don't need a public blockchain)

6/ Does this make sense or am I missing some other significant variable?

Can you think of any examples for any of the four quadrants?

7/ Some other variables I've thought about but not sure how to factor in

1. Capital efficiency - if Lightning allows for greater scale/unit of censorship resistance, but has poor capital efficiency, that limits its impact.

8/

2. Stateful vs. Stateless Smart Contracts - In theory, stateful is "better" but we've seen with ETH "hacks" that in practice not always the case.

With statefulness there are so many eventualities that it may be effectively impossible to ever trust the smart contract?

Perhaps this is resolvable in time and just a matter of getting better at writing smart contracts?