#DeLaw
Short for ‘Decentralized Law’.
You heard it here first 💡
Let me explain to you what it is:
🧵👇 #Web3
Short for ‘Decentralized Law’.
You heard it here first 💡
Let me explain to you what it is:
🧵👇 #Web3
2/ What Is #DeLaw?
DeLaw is a new area of innovation that is concerned with the development of decentralized legal solutions. It also deals with the creation and enforcement of laws and the resolution of disputes.
DeLaw is a new area of innovation that is concerned with the development of decentralized legal solutions. It also deals with the creation and enforcement of laws and the resolution of disputes.
3/ Blockchains Are Legal Systems
A blockchain is in fact a decentralized legal system where ‘code is law’ is the native paradigm. The protocols and smart contracts are the law. The consensus executes the code automatically, the equivalent of law enforcement.
A blockchain is in fact a decentralized legal system where ‘code is law’ is the native paradigm. The protocols and smart contracts are the law. The consensus executes the code automatically, the equivalent of law enforcement.
4/ Rule of Law
The code-is-law paradigm is primarily a system made for machines and is not particularly human-friendly. That's why DeLaw focuses on the established rule-of-law paradigm where laws and contracts are written in natural language.
The code-is-law paradigm is primarily a system made for machines and is not particularly human-friendly. That's why DeLaw focuses on the established rule-of-law paradigm where laws and contracts are written in natural language.
5/ Legal vs. Smart Contracts (1/2)
Smart contracts are written in a formal language that allows the execution by machines.
Legal contracts are written in natural language and interpreted/executed by humans.
Smart contracts are written in a formal language that allows the execution by machines.
Legal contracts are written in natural language and interpreted/executed by humans.
6/ Legal vs. Smart Contracts (2/2)
AI will be able to interpret natural language contracts in the future but there will always be a subjective element as natural language is not precise.
AI will be able to interpret natural language contracts in the future but there will always be a subjective element as natural language is not precise.
7/ Contract Completeness (1/2)
One of the big issues of smart contracts is their requirement for completeness as a classical computer can only interpret the information it is given.
One of the big issues of smart contracts is their requirement for completeness as a classical computer can only interpret the information it is given.
8/ Contract Completeness (2/2)
A judge assessing a legal contract will always take into account context and intentions. A smart contract on the other hand is assessed and executed as it is, even if the code has a bug or the context suggests another meaning.
A judge assessing a legal contract will always take into account context and intentions. A smart contract on the other hand is assessed and executed as it is, even if the code has a bug or the context suggests another meaning.
9/ Manual vs. Automatic Enforcement
Smart contracts are executed and enforced automatically while traditional legal contracts are executed and enforced manually.
There are some advantages and disadvantages in both cases.
Smart contracts are executed and enforced automatically while traditional legal contracts are executed and enforced manually.
There are some advantages and disadvantages in both cases.
10/ Smart Legal Contracts (1/2)
Smart legal contracts could incorporate the best of both worlds. It’s a regular legal contract where parts of the contract are automated in the form of a smart contract.
Smart legal contracts could incorporate the best of both worlds. It’s a regular legal contract where parts of the contract are automated in the form of a smart contract.
11/ Smart Legal Contracts (2/2)
They are also called Ricardian contracts, invented by @iang_fc in 1996. They appear to be the optimal solution for human-facing smart contracts.
They are also called Ricardian contracts, invented by @iang_fc in 1996. They appear to be the optimal solution for human-facing smart contracts.
@iang_fc 12/ Enabling the Decentralized Economy
The decentralized economy will need a composable alternative to enable trusted use cases like decentralized trade or the open metaverse, the latter even requiring paradigms and processes present in the public law realm.
The decentralized economy will need a composable alternative to enable trusted use cases like decentralized trade or the open metaverse, the latter even requiring paradigms and processes present in the public law realm.
@iang_fc 13/ A Page From the History of the Internet
The history of the internet tells us the importance of trust for wider adoption. eBay's internal dispute resolution system has created a trusted marketplace that enabled eBay’s mainstream adoption.
The history of the internet tells us the importance of trust for wider adoption. eBay's internal dispute resolution system has created a trusted marketplace that enabled eBay’s mainstream adoption.
@iang_fc 14/ The Importance of Dispute Resolution
Platforms like eBay and Alibaba have their own private legal systems, as users are subject to their terms and conditions which are ruled based on their online dispute resolution systems. They resolve more than 100M disputes every year.
Platforms like eBay and Alibaba have their own private legal systems, as users are subject to their terms and conditions which are ruled based on their online dispute resolution systems. They resolve more than 100M disputes every year.
@iang_fc 15/ A System Based on Private Law
A decentralized legal system uses primarily private law to establish contractual relationships and arbitration to settle disputes. The relevant “public law” consists of the rules of the base-layer protocol.
A decentralized legal system uses primarily private law to establish contractual relationships and arbitration to settle disputes. The relevant “public law” consists of the rules of the base-layer protocol.
@iang_fc 16/ Other Types of Law
Other laws where the contractual relationship has not been explicitly established between the parties suffer practical issues as their enforcement in international and often pseudonymous contexts remains challenging.
Other laws where the contractual relationship has not been explicitly established between the parties suffer practical issues as their enforcement in international and often pseudonymous contexts remains challenging.
@iang_fc 17/ The States of the Future
Blockchains are the states of the future that share many characteristics of today’s Westphalian states. Similar to the double-helix structure of our DNA, blockchains are poised to form the information backbone of the superorganisms of the future.
Blockchains are the states of the future that share many characteristics of today’s Westphalian states. Similar to the double-helix structure of our DNA, blockchains are poised to form the information backbone of the superorganisms of the future.
@iang_fc 18/ Challenge of Distribution
For many of us, the law is often a mere afterthought rather than a key
system design component. Thus, legal solutions such as dispute resolution are best bundled with other services. Examples for such bundles: Upwork, Fiverr, eBay.
For many of us, the law is often a mere afterthought rather than a key
system design component. Thus, legal solutions such as dispute resolution are best bundled with other services. Examples for such bundles: Upwork, Fiverr, eBay.
@iang_fc 19/ Decentralized Legal Stack
Technologies evolve by increasing the depth of their tech stack, increasing capabilities and user-friendliness. Analogous, we should expect a legal layer on top of the smart contract layer, making blockchain more human-friendly to interact with.
Technologies evolve by increasing the depth of their tech stack, increasing capabilities and user-friendliness. Analogous, we should expect a legal layer on top of the smart contract layer, making blockchain more human-friendly to interact with.
@iang_fc 20/ The Pioneers
Shout out to the pioneers of the field @iang_fc @nickszabo4 @lex_DAO @Kleros_io @federicoast @openlawofficial @AragonProject @awrigh01 @Decentral_Law and everyone who is missing here.
Shout out to the pioneers of the field @iang_fc @nickszabo4 @lex_DAO @Kleros_io @federicoast @openlawofficial @AragonProject @awrigh01 @Decentral_Law and everyone who is missing here.
@iang_fc @NickSzabo4 @lex_DAO @Kleros_io @federicoast @openlawofficial @AragonProject @awrigh01 @Decentral_Law 21/ That's a wrap!
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