Intelligent contract truth

The value of carbon chain (ID:cc-value), the author: Jimmy Song, Morpho Hawkes, Diana, compiled: Daily Planet authorized forwarding.

 Intelligent contract truth

“The real problem is that your” smart contract “is really necessary to the center? Is it just to be able to fulfill its mission is enough? In fact, in the center of the realization of the contract is more efficient, because the future will be the most “smart contract” and the reality of the interactive.

For example, a driverless car to pick you up and take you to the destination. Between you and the car driverless car between the “smart contract”, why need to go to the center of this property? Why does it need to resist censorship, why need to be stored in the global tens of thousands of computer, and henceforth forever continued uninterrupted into operation? This is simply not used to. Also, when you go to a soda machine to buy a bottle of cola smart contracts, is also used to go to the center.

If you sum up after all, in the end the most intelligent contract simple attribute, actually don’t need to go to the center of the. I certainly know where out ICO give you publicity, said intelligent contract you and the Taiwan soda machine needs to the center, need to be replicated in subsequent years. They’re lying. On the contrary, the real need of intelligent high-grade property and anti contract review to the center, it is a smart contract in the news recently was spread to the assassination Market — this is the real need to the center of the property and anti censorship. While the other end is similar to soda vending machines of this kind of intelligent contract.

The two ends of the line where? In order to achieve the privacy of anti censorship, to the center of science and technology brings the inefficiency of the line was worth compromise where? I think the line in Augur (Assassination market) a little bit below.”

Tone Vays

Recently, the word “smart contract”, with “block chain” and “artificial intelligence” and “cloud” of these words as being hype.

After all, people are trying to determine the future, but at present the most reliable method or the judicial system. If in addition to the judicial system, and other means outside, it is really too good. Intelligent contract will provide people with a series of commitments, including:

1 commitments: to automatically, to trust and justice of the compulsory contract.

Commitment 2: in the formulation, implementation, contract enforcement, removing the middleman.

Commitment: 3 (implying we can) not a lawyer!

I have sympathy for such speculation. After all, we must cooperate with others to trust the other party to do things. If necessary this trust has been removed, the more convenient?

What exactly is the intelligent contract? Is not the etheric workshop will display skills to the full field? The future is not the only way which must be passed? Why would anyone want to impede the progress of the times?

This paper is to look at what is the intelligent contract; contract based on the smart engineering reality is what. Spoiler: intelligent contract realization is not easy, it is difficult to keep stable.

What is a smart contract?

In general, a contract is a contract or agreement reached by the parties or constraints, what do they do in the future. For example, Liu Ying is likely to pay a sum of money for Yongqiang Yongqiang, the house (or rent); Yutian may promise, small adorable car as long as the future trouble, Yutian will be responsible for the repair, benefits every month can receive a sum of money (or car insurance).

 Intelligent contract truth

The dog in the picture: 2015 about “blockchain, shouting” smart contracts in 2017″

The difference with the traditional intelligent contract is the contract, all conditions are then executed by the computer code, the code for contract has become a “trust” state. So if Liu Ying agreed to pay five hundred dollars to let Yongqiang Yongqiang, three months later sent her a sofa (that is, futures sofa) on a set of computer code, these conditions are true. For example: Liu Ying to Yongqiang pay? Time to three months? Then, the code will be executed, or by third party custodians of a sofa; both can not withdraw from the contract.

The main feature is the “smart contract to trust the executive”. That is to say, we don’t need to rely on third parties to perform a variety of conditions. The contract does not depend on the other side of intelligent promises. Even worse, if abnormal, do not rely on lawyers and the legal system to solve the problem. The contract will only execute those according to intelligent code should be timely and objective result.

Intelligent contract rather silly

“Intelligent” two words, seems to indicate these contracts have an inherent wisdom; but the contract did not actually. The so-called “smart”, meaning that does not require the other party cooperation could fulfill the agreement. If the housing tenant does not pay the rent, the intelligent contract does not put tenants out, it will lock the door, so that tenants can not enter. Where the contract is intelligent and effective, strict implementation of agreed in advance good results, but not the contract itself is wisdom.

 Intelligent contract truth

 Intelligent contract truth

Shout: put everything into smart contracts!!!

Intelligent real contract, will take into account all the “excusable” of the occasion, the basic spirit of the contract review. Even in the most chaotic situation, also can let the ruling as fair as possible. In other words, intelligent contract real, like a very good judge. However, we now call “smart contract” is not smart. Contract is the basis of intelligent rules, follow the rules without considering any secondary factors strict in demands, or “the spirit of the law”.

In other words, let the contract “to trust”, means that we will not tolerate the slightest ambiguity space, then leads to the next question.

Intelligent contract is rather difficult

Because of the promotion of many etheric square center, so people have a misconception, that is only the etheric Fang intelligent contract. That’s not the case. From the beginning of 2009 bitcoin launched, there will be a smart contract language a highly scalable, named Script language. Back a bit further, as early as in 1995, before the launch of bitcoin, smart contracts already exist. Intelligent contract language bitcoin, with intelligent Ethernet is different Ethernet square contract contract with “Fang Turing complete” (Turing-complete) this characteristic. Ethernet square contract language named Solidity. that language can realize more complex contracts, the contract will harm is more complex more difficult to analysis.

 Intelligent contract truth

 Intelligent contract truth

Accurately speaking, intelligent contract as early as bitcoin exists before. I love this cartoon!

The complexity will produce some important results. A complex contract can adapt to more complicated situations, but it is very difficult to ensure the stability of. Even if the traditional contract is more complex more difficult to enforce because of various complicated factors will bring more uncertainty, interpretation brings more space. Intelligent contract “stable” means all the way management contracts can be executed, ensure the work meets the contract makers expected.

 Intelligent contract truth

The comics:

The glasses man: for security reasons, we intend to recruit individuals responsible for said……

Black man: wait a minute, this thing is not to worry. Let’s do this project, we’ll say.

The glasses man: Hey, almost finished it project! We have to do a security audit, so that……

Black man: ah! Time is up. No money to engage in!

The glasses man: website are on the line for ten days, to do safety testing, I cannot rest……

Black man: don’t worry, let’s go back again.


Black man: collapse! Our website collapse! We have black! What do you eat?

In the “Turing complete” environment, implementation becomes very difficult, it is difficult to analysis. Let “intelligent contract Turing complete” to maintain stability, the equivalent of a computer program that no bug. As we all know, this point is really too difficult, because all programs in reality are bug.

Consider this: write intelligent contract takes many years of study, also need to pass strict examination, in order to make the contract. This is the basic requirement of smart contracts. At present, there are many people who write the contract rookie, do not know how smart contracts required to be qualified and stable.

Bitcoin solutions to this problem, is simply the “Turing complete” condition is cancelled. This makes it easier to analyze the contract number, let the program state that may appear more easily, the test list.

The solution is to let the etheric Fang, intelligent contract responsibility author. We must ensure that the implementation of the contract must be in line with expectations.

The contract is not a contract (intelligent smart contract at least not the etheric Fang)

To ensure the stability of intelligent Ethernet Fang contract responsibility to the author. This way is good in theory, but has some very serious results in practice, leading to the center.

The basic idea is to establish the etheric Fang “code rule” (code is law). That is, a contract on behalf of the etheric Fang the highest authority, who can not go beyond the contract itself. The idea is to clearly inform all intelligent contract developers, responsibility must be conceited. Once the development of intelligent contract their messed up, some aspects can be said to ourselves. However, the “DAO attack”, the system will suddenly end.

The name is Decentralized DAO English Autonomous Organization, meaning “to the center of the autonomous organization” is a creation in the etheric Fang internal foundation, aims to show that this platform can make what achievement. The user can save money in DAO, because DAO made the investment return. The decision to “Crowdsourcing” form (Note: the value chain of a company or institution of the past tasks performed by the employee, in a voluntary form of outsourcing to non-specific (usually large) public network approach), is to the center of the. DAO Ethernet currency raise 1.5 billion dollars, at the time of the etheric currency trading price is about $20. It all sounds are very good in theory, but in reality there is a problem: Code stability is not good, so some people have found a loophole, the DAO funds are provided.

This provided DAO funds, many people call him “the hacker”. Indeed, the “hacker” found a loophole, money from the contract, the founder of DAO, did not expect this situation. In this sense, he can be called a hacker. But in the broader sense, he is not the hacker, just use the original contract intelligent oddities for their own profit only, with a clever CPA found loopholes and tax policy for customers to save money without what difference.

Then, the code is no longer the etheric Fang decision rules, and returned all the money into DAO. In other words, contracts the author and investor folly, the developer decided for their etheric Fang out.

 Intelligent contract truth

 Intelligent contract truth

“When I was young my time has passed, and now I want to apply for government assistance.”

The impact of the incident, there have been many articles. There is a called “etheric Fang classics” (Ethereum Classic) of the new block chain system in written form to save the DAO, also retained the “code rule” system. In addition, developers began to abandon the use of Ethernet Fang “Turing complete” feature, because the reality is too difficult to prove the characteristics of stable. At present, the most commonly used Ethernet Intelligent contract template is ERC20 and ERC721 square, and is a very important point is that the two template can be completely inconsistent with the “Turing complete” written contract.

Intelligent contract applies only to “digital certificate of assets”

Even without the “Turing complete, intelligent contract also seems to be a fantastic idea. If you simply can get some of their assets should belong to “trust”, why special court for assets? Smart contracts are not much easier than the traditional contract?

For example, real estate should benefit from the smart contract? Liu Ying can prove he is the owner, who can spend money to buy a house. Do not have ownership dispute, can let the machine execute quickly with “trust”, also do not need to judge, not bureaucracy, also do not need to “property insurance”. This is the best!

There is a problem in reality. The first question: as long as the intelligent contract is performed by a central institution, it is not real “trust”. We still have to trust the central institutions, in order to perform. “Trust” is the key feature, so the center of the execution is meaningless. There must be a real go to the center of the platform, in order to make smart contract truly to trust”.

This brings second problems: in the decentralized case, intelligent contract to play a role, must also exist a certain connection between the digital version and the version of reality. That is to say, once the digital version of housing ownership change, the reality version must also occur housing ownership change. The digital world must “understand” the real world, this is called “oracle” (Oracle problem). (Note: the predicted value of carbon chain contract machine for intelligent digital world provides real information about the corresponding problem. In the physical world)

Liu Ying to transfer the house to Yongqiang when smart contracts need to know the real Liu Ying transferred the house to yongqiang. There are several different ways to complete this step, but they all have the same basic flaw: there must be a trusted third party to verify the real world events.

 Intelligent contract truth

 Intelligent contract truth The comics:

The black squirrel: after the announcement of the investment, the market has been a lot of action……

Black: a lot of small companies have been using the pineal coin buy our stock. We now have their own stock are not even 50% to!

Black: wait a minute!! All of these small companies are squirrels, that is……

Black and white: let’s buy a squirrel!

Squirrel: I this new office should have a lot of wood paneling!

For example, the etheric workshops can use a “non homogeneous tokens” on behalf of the house. Liu Ying can use the “atomic transaction” (atomic swap) (Note: the value chain of carbon atom exchange, atom exchange, which is being developed in the center, without third party new technology allowed in different types of digital assets without trust transaction point.) To transfer the house to get a certain amount of ether Yongqiang, currency. This is the problem! Who need to trust the tokens, tokens can really represent that house; this requires some kind of Oracle, to ensure the house once gave Yongqiang Yongqiang tokens in reality, legal owner of the house.

Moreover, even if there is a government authority that said “this token is indeed representative of the house”, if the token stolen how to do? Is that the house will be a thief? The token is lost and how to do? It is not that the house can not be sold in the market? Can send a token? Can you send, by whom?

As long as in a decentralized environment, there is a very difficult problem – how to get a digital asset with a real asset (fruit, car, house and so on) together? Under the jurisdiction of the judiciary by real assets in our region, which means that, in addition to the trust contract we create intelligent assets, also have to trust in something else. So, the ownership of intelligence under the contract, does not necessarily mean that the ownership of the real world, and intelligent contract with the reality of facing the same problem of trust contract. As long as a smart contract trust third party, “the main advantage is not to trust”.

Even digital assets (books, medical records, movies) is also facing the same problem. Someone has these digital assets “right”, and ultimately also allow some other authority and Oracle to decide, but people must trust the authority and oracle.

From this perspective, Oracle is “fool version of the judge”. We would like to allow the computer to enforce the contract, so that the process of enforcement becomes simple, but it has more trouble, must take into account the subjectivity of human judgment and risk, put all the possible results all into code. So, let the contract “intelligent”, is to make the contract writing more complicated, at the same time also had to keep on trusting. Why bother?

If you don’t use Oracle, only to make the achievement is the “digital bearing equipment” (Digital bearer instruments). Both parties not only must be digitized, and must be carrying equipment. That is to say, the token ownership, absolutely can not rely on what other intelligent contract platform. Intelligent contract only with digital bearing equipment, in order to truly trust”.


I hope the intelligent contract can play a greater role than the current. Unfortunately, the traditional contract we humans always implied the existence of a large number of self-evident content and precedent law (case law, formed in accordance with the previous judicial examples of the law), without explicit expression; it must be a clear expression of all intelligent contract content, so the two are not universal.

And we also found that the application of “Turing complete” principle can easily lead to serious consequences, resulting in a variety of acts contrary to expectation. We should put all the existing contract intelligent platform with a tag “Turing weak” instead of “Turing complete”. DAO attacks also prove the existence of a contract, “the core spirit”, are we all abide by the unwritten rules that can help resolve the dispute, but also force bigger than we realize.

Intelligent contract too easy accident, too difficult to keep stable, is not easy to achieve the “trust”, but also must rely on many external factors can play a role. Intelligent contract only increased to the degree of trust “where are those with digital carrying equipment to the center of the platform, such as bitcoin.

 Intelligent contract truth

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