A smart contract is an agreement enforced by blockchain technology. It supposedly allows the parties involved to conduct transactions more efficiently than a traditional contract, which is based on legal (costly) enforcement. This chapter challenges this claim. Given the need for an efficiency-enhancing adaptation of institutional arrangements – a chief problem of Oliver Williamson’s transaction cost economics – smart contracts may incur higher transaction costs than traditional contracts.
Do Smart Contracts Incur Higher Transaction Costs than Traditional Contracts? / Vatiero, Massimiliano. - 15:(2023), pp. 21-32. [10.1007/978-3-031-25059-0_2]
Do Smart Contracts Incur Higher Transaction Costs than Traditional Contracts?
Vatiero, Massimiliano
2023-01-01
Abstract
A smart contract is an agreement enforced by blockchain technology. It supposedly allows the parties involved to conduct transactions more efficiently than a traditional contract, which is based on legal (costly) enforcement. This chapter challenges this claim. Given the need for an efficiency-enhancing adaptation of institutional arrangements – a chief problem of Oliver Williamson’s transaction cost economics – smart contracts may incur higher transaction costs than traditional contracts.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione
