How To Spot A Bad ICO

[sebasvelasquez1]

Dear Friends,

I just want to comment on some issues mentioned with respect to smart contracts:

1. I believe that they are NOT intended to replace "LAW ENFORCEMENT", nor do they replace "LAW CREATING INSTITUTIONS" such as Congress or regional regulations.


2. By the free world, ALL CONTRACTS ARE CONSIDERED LAW BETWEEN THE PARTIES (of course they cannot go against previous Laws, so we are not including or considering ilegal agreements such as "an assasination contract"). So in that sense, if a smart contract has a way of proving intent by the parties, than yes THOSE SMART CONTRACTS may be THE LAW for those parties.

3. Lets diferenciate Law Enforcement, Contractual enforcement, and Contractual Implementation (I am a Colombian lawyer, so excuse me if don use the propoer Common Law categories).

- Law enforcement. Understanding Law from the institutional and "democratic" point of view, of course Smart Contracts cannot, for now, replace Law Enforcement institutionsfor in the present time (who kows in the future, ever wacthed The Matrix, Robocop or Any Manga Animé?). We are defenetely not there yet. So it is important to understand that is not smart contacts' present function or intention.

- Contractual enforcement. Could be understood as a way of "forcing" parties to comply with their part, and if they dont penalties may apply. Sometime this enforcement is done through public institutions, other tiims through independant tribunals. In the case of Escrows, the penalty may be in the form of not returning your funds, or portion ther of, if you have not complies.

- Implementation, is complying willfully with the obligations of a contract or a law.

4. I beliebe SMART CONTRACT ARE INTENDED TO automatize certain aspects of contract creation and compliance. With respect to creation, signatures are ways to prove "intent to hire, or contract".

With regards to compliance, smart contracts provide mechanisms to vest parties in such way that it would be against their interest not to comply. For example, Escrows, where funds are held until parties comply.

Hope this was helpful,

Sebastian