Internet of Things, smart contract and block chain technology has been ready to enter the prime time?

nnnRush when comment: a huge network of things connected to countless devices, so the trust mechanism is particularly important. The combination of things and smart contracts may be able to solve these contradictions. But the failure of the DAO project based on the block chain has proved that this model is immature, and that legal factors further increase its complexity. But with the development of industry standards, as well as other technical factors, the Internet of Things will still be combined with these new technologies.n
nnTranslation: Annie_Xun
nFor most organizations, the Internet of Things is mainly more and better equipment to more and more way to interconnect, bring more and better data and decision-making. But the Internet of things also implies that everything is automated. That means introducing more business concepts, including the idea of ​​managing business transactions with contracts.n
nThe history of contract law is very rich, with common law practices and legislation for centuries. So when the thought-provoking people proposed to make the contract intelligent, the use of block chain to support them, this bold idea quite exciting. The concept of the evolution of the process and the future of things related to the project. Need to consider complex legal issues, as well as unpredictable code and contract loopholes and other issues.n
nInternet of Things, Smart Contract and Block Chain Crossingn
nRichard Mark Soley, executive director of the Industrial Internet Consortium in the United States, said, “One of the biggest problems with the Internet of Things is to know who is connected to you. The trust mechanisms that millions or even hundreds of millions of sensors need are blocks Chain and other distributed systems so important reason.n
nBut the fusion of networking and contracts, that is, to achieve smart contracts, may be difficult.n
nIn the case of a block chain allocation system, the concept of a smart contract extends the function of the books, increases the language of the terms of the agreement, and determines whether or not it meets a certain condition. IDC’s global compliance, fraud and risk analysis strategy and block chain research director Bill Fearnley Jr. said, “can be designed to enable buyers and sellers to meet the conditions when the implementation of intelligent contracts.” These conditions include the price of the goods and the date of shipment to match the amount that a person is willing to pay and the required delivery date. In other words, smart contracts can be used for multiple chain chains to support business activities.n
nFearnley said that there are already automatic execution of the sale of the contract, but the use of block chain code and contract terms can be put into the books, and multi-share.n
nn”The advantage is that you can execute a contract of sale and pay a contract, and the reason for getting so much attention to the smart contract is that, even though the sale can be done very quickly, the post-trade settlement is often expensive, but with the block chain, these paper processes can be automated , These records are stored on the chain. “n
nnThe contract can be concluded in advance, records can be automatically saved, tracked, the use of records for traceability, such as raw material purity.n
nSmart contract issuesn
nThe so-called decentralized autonomous organization DAO encountered attacks in 2016, so that people began to worry about the block chain. In this incident, DAO tried to provide a new way to participate in venture capital funds, initiated through the Taiyuan block chain, in May 2016 through the tokens sales financing.n
nBut in June 2016, an unknown participant used the missing code loopholes to change the one-third of the funding path. In order to reverse the situation, led to the Yiwu Square block chain of controversial bifurcation. The new bifurcation rolls back the books and is re-set so that it does not seem to happen, and the money is returned to DAO in the name. But those who disagree with this practice still retain the chain of non-bifurcated chains – Ethereum Classic.n
nThe book itself was not attacked, but the code error led to an unrestricted withdrawal; but the event highlighted the complexity of the smart contract. “As a result, companies, financial institutions and regulators are increasingly trying to make smart contracts avoid similar unfortunate incidents.”n
nForrester Research chief analyst Martha Bennett said:n
nn”If you can, please call me smart contract scourge the prophet, I think this is an interesting concept, but must be careful to deal with. On the one hand, they are not intelligent, nor is the contract.” Bennett says she simply describes the smart contract for a business process automation. “If you divest all inspirational language, it is actually a set of business norms written in the software.If you think as a liberal do not call it a business specification, then it can be called a set of management principles.”n
nnn”The media reports that the new code environment is legal, but it is not. You still need an independent legal agreement to have something that can be enforced. If you see a larger block-chain environment, if these activities have crossed the border , You may need to have a binding contract that complies with the applicable law of your country, which is something that makes the lawyer busy for years. “n
nnNelson Mullins lawyer Jason Epstein agrees:n
nn”Although the block chain may be transformational, but not necessarily change the law.” However, he noted that many existing legal principles apply to block chains. “Smart contracts are only computer code that is automatically executed on the basis of input and output, just like day trading.” In a block chain smart contract, the contract says the code is the contract, and no one can deny it. “n
nnIn addition to whether the smart contract is semantically intelligent, Epstein thinks it could be used for almost everything. But he said, whether or not intelligence is another matter. For example, he pointed out that if a situation involves a health care provider, you need to ensure that the terms guarantee that you do not violate the privacy policy of the Health Insurance Portability and Accountability Act. “If you talk about complex agreements or negotiations, want to cover all legal issues, then the smart contract will be more and more challenging.”n
nInternet of Things, smart contracts and the future of block chainsn
nSoley believes that the Internet of Things, smart contracts and block chains are undoubtedly conducive to industrial use cases. Thus, the Object Management Group of the Industrial Internet Alliance is seeking a way to standardize the distributed contract mechanism.n
n”It’s still early, there is no standard, but we understand the role of the standard.” Similarly, although Soley said that some of the projects in the test of things networking smart contract, but also did not get the support of the Union. But that day will not be too far.n
nn”Things are going to grow faster than you think.We will see some interesting cognitive systems, artificial intelligence, and machine language learning test platforms this year and I think we will see the first block chain standard and distributed in a year Contract test platform “.n

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