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To those who asked: A smart contract runs with the predictability of code. Courts don't. In particular, arbitration clauses are often not upheld.


Courts run with the predictability of law/codes...it's one of the reason 90% of cases settle without trial.

If an arbitration clause isn't held up, it's not because of unpredictability of the court it's because the clause runs afoul of the actual law/code the court applies which is predictable. Moreover, smart contracts are not going to permit parties to circumvent law, in other words a smart contract arbitration clause would not be enforceable in a jurisdiction they are not otherwise enforceable.


And with all the reliability and security of code. See, for example, the DAO fiasco.


Interestingly this can be considered both an argument against and in favour of smart contracts.




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