Re:New Kid on the Blockchain
by varav on Monday March 28, 2016 @05:13AM
(#11373334)
> your code needs to trust an external system providing the data
As for the reliability of external data sources to a contract running on Ethereum, there are multiple proposed solutions.
One is to use some sort of reputation tokens similar to what Augur[1] - a prediction market built on Ethereum; employs.
Another solution that was suggested by one of the co-founders of the Ethereum project is to use "Schelling points"[2] as guides since a large number of non-communicating reporters of events will most likely converge at what is closest to the truth[3].
> other people will honour the 'facts' decided by your program
I don't really see that as a technical limitation of Ethereum. IANAL but, if the terms of the smart contract can be codified into a legal agreement, then the decisions of the program can be made enforceable by law.
As for the reliability of external data sources to a contract running on Ethereum, there are multiple proposed solutions.
One is to use some sort of reputation tokens similar to what Augur[1] - a prediction market built on Ethereum; employs.
Another solution that was suggested by one of the co-founders of the Ethereum project is to use "Schelling points"[2] as guides since a large number of non-communicating reporters of events will most likely converge at what is closest to the truth[3].
> other people will honour the 'facts' decided by your program
I don't really see that as a technical limitation of Ethereum. IANAL but, if the terms of the smart contract can be codified into a legal agreement, then the decisions of the program can be made enforceable by law.
[1]: http://augur.link/augur.pdf
[2]: https://en.wikipedia.org/wiki/Focal_point_%28game_theory%29
[3]: https://blog.ethereum.org/2014/03/28/schellingcoin-a-minimal...