Jul 17, 2014 12:11 PM

Can someone dumb right down how smart contracts work and how they differ from written contracts that exist now, or are they two totally different things? :/

<<Smart contracts are computer protocols that facilitate, verify, or enforce the negotiation or performance of a contract, or that obviate the need for a contractual clause. Smart contracts usually also have a user interface and often emulate the logic of contractual clauses. Proponents of smart contracts claim that many kinds of contractual clauses may thus be made partially or fully self-executing, self-enforcing, or both. Smart contracts aim to provide security superior to traditional contract law and to reduce other transaction costs associated with contracting.>>

Eamonn O Brien, by NO means I am an expert on ANYTHING, but let me give you what I understand so far.

What if you, and me agree in a contract. You will perform certain service under certain terms and conditions, and we agree I will "pay" in Bitcoins. You will sell me a mining rig, for Bitcoins, and send it by mail.

We do not want any third parties, like forced government services, to interfere is one of us does not honour the contract. If you do not send the rig, I also do not want to be subject to other third parties, like Paypal etc, to be mediator in case any of us does not perform. We will use Ethereum code, in computers, instead.

The terms, and conditions may have a clause that says that if I sent the Bitcoins, and you do not send me the mining rig in so many days, the Bitcoins will automatically be returned to ME, plus whatever other, if any, application of the agreement. Partially or fully self-executing, self-enforcing, or both.

No complaints, no "judge", no attorney, no whining, no "disputes," no paper, no banks, extremely cheap, no human resources involved, no extra time. Instantaneous "remedy." All thru math, and computers. All in the same blockchain, decentralized, all verifiable by anyone. Now, that is just one very simple example of the smart contracts.

In terms of Law, and government, this can be seen in a more larger, but still simple example. Self executing laws, that neither the "citizen," but now NOR the public official can escape. And the possibility of NOT honouring contracts will become... impossible, but I know it will also turn deadly for that kind of genetic profile.

If we know Money, and Law (which we are been given the opportunity), and understand how these will play out in a new crypto-world, we have a HUGE LEAD.

Into what respects to the members of the Tender for Law, this is a way smart contracts may impact us, in reality.

<<Anyway...over the next year, we shall be putting these pieces together. We are all going to draft law in controlled environments (for this we will use Etherium Alpha)...

When I'm done everyone will think right, and will value the right things, and if they don't a computer will make them. Imagine making law that says you specifically must be left alone, and your government enforces it. Imagine if everybody thinks right, and values the right things. Natural Law will become written law, all on an exponential curve to evolve our species. To evolve our societies, and above all, to evolve each and every PERSON.>>

But, I am no expert. These are simple examples. So, there is that.

Mackximus ....what if you send the BitCoins, and you receive the Mining Rig, but claim you didn't and you take the BitCoins back? Where does arbitration happen and how?

Some clauses of a contract could be self-executed, others partially, depending on the terms and conditions. The parties need to agree to all these possibilities, via terms and conditions, PRIOR to contract. There could be a third party intervention, if the parties agree if they cannot agree.

I can see the folks that learn to write Law taking advantage of this new system, while at the same time, others will pay the price to let third parties take care of their business, just as we see/have today.

I am sure that many things will probably imitate some of the practices we observed today, but in the new protocol.

Those who self govern will succeed then?? That's how it seems.

We will have the keys to the on/off.

Yes... it's all part of that "crazy" shit I have been doing since 2006 :P

...It's still a little soon for me to play the "TOLD YOU SO" card... but I'm really feeling the urge. :D

How informative us the Ethereum group on Github? [Remember I am learning still]

Github is for the people developing it. It's VERY useful if you are a developer.

The layman will make little sense of it.

Thanks.

"The robot economy itself is essentially based on Rome. Rather than having hundreds of slaves, each person in the Lockstep has a number of robots. It’s illegal for corporations to own robots—they can only own single-purpose machines — So what people do is they send their robots out as a workforce—essentially as their slaves—to do their work for them, and they reap the profits.” Sounds like these robots could become PERSONs :D

so, you include a third party. one who is the trustee, he recieves the goods, and verifies it, to be sent on or back, once the bitcoin transaction occurs, for a small fee.

the same as i do service calls through www.onforce.com the buyer funds the work order, the provider negotiates with the buyer on the contract. once an agreement is made, the provider performs, and submits confirmation by the party who received service. the buyer, satisfied accepts the contract obligation was fulfilled, and they ok the release of the payment. onforce gets a cut aswell as provides the provider if necessary, errors & omissions ins. they take 15% from the provider, and they charge the buyer a flat fee to route the work through the platform.

Ethereum eliminates the third party. ALWAYS

:D

oh, not ethereum IS the third party? hmmm

<<Ethereum eliminates the third party. ALWAYS>> Scott Duncan

700,000 BTC can buy quite a bit of Ether... :p Scott

Just dumbing it down bit by bit as I try to grasp it...

Distributed applications is software running on a network of computers. Ethereum gives programmers a platform (A platform being an "underlying computer system") to build distributed applications on...

When I look up "underlying computer system" there aren't many results... I'm picturing a massive computer somewhere that people will have to use to build software on...

This is how I'm picturing it. I tend to "picture" everything... This may be a painful to look at for the crew(s) :/

Think in terms of SUPERcomputers.

http://www.computerworld.com/s/article/9249763/Fujitsu_designs_leaner_supercomputer_with_fewer_switches

http://mybroadband.co.za/news/general/83927-new-model-of-wireless-networks.html

More Like this i think !!

Linking all computers daisy-chain style to create a SUPER-PERSON

Users run an "App" which allows their device to "VERIFY" blocks in the ethereum blockchain allocating processing power to the platform, Thus no central computer, Decentralising is the key, Each device is part of the network. Please correct me if I am wrong.

Eliminating servers... Sort of like building a climbing frame for kids and Ethereum is the main screw holding it all together as opposed to lots of small screws (servers)... (Yes, that's how dumb I need to go to grasp concepts in the computing world) :D

http://en.wikipedia.org/wiki/Wireless_mesh_network

Your device runs the ethereum code allowing your mobile phone pc/etc, to become a node in the network.

"Runs the ethereum code", lost me a bit there Im afraid...

Ill get stuck into it tomorrow. Sleep now. Cheers

Each app is like a software client. All of the clients work together to sustain the system.