The contract execution is only going to work if all parties bound by it agree that the execution is the full extent of their agreement.
For instance, if two people who have no business to reside in 168 Park Avenue make up a contract in 'the real world' that the other can go and occupy 168 Park Avenue then they will find - probably not to their surprise - that their agreement will not work, regardless of which medium it is conveyed on.
Smart contracts are a tool for those situations where you believe present day law is going to leave you stranded or in a situation that is legally ambiguous. I do not believe their strength lies in areas that are already properly governed by existing law.
Now you could argue that that is all of society as we know it right now, but in international commerce there are quite a few legally gray areas that are now patched over with mechanisms such as escrow and various other instruments. But those are only 'worth it' when the transaction amounts are larger than a certain minimum.
So, in short, you are absolutely right, if you use a smart contract in a situation where a regular contract would suffice it will not change anything. All the parties to the contract are known, the whole thing has immediately verifiable effects in the real world and 'might makes right'.
But in situations where the participants would like to remain anonymous, in situations where both parties would for reasons known to them rather avoid dealing with lawyers, the law and associated mechanisms smart contracts could become an enabling device.
For instance, if two people who have no business to reside in 168 Park Avenue make up a contract in 'the real world' that the other can go and occupy 168 Park Avenue then they will find - probably not to their surprise - that their agreement will not work, regardless of which medium it is conveyed on.
Smart contracts are a tool for those situations where you believe present day law is going to leave you stranded or in a situation that is legally ambiguous. I do not believe their strength lies in areas that are already properly governed by existing law.
Now you could argue that that is all of society as we know it right now, but in international commerce there are quite a few legally gray areas that are now patched over with mechanisms such as escrow and various other instruments. But those are only 'worth it' when the transaction amounts are larger than a certain minimum.
So, in short, you are absolutely right, if you use a smart contract in a situation where a regular contract would suffice it will not change anything. All the parties to the contract are known, the whole thing has immediately verifiable effects in the real world and 'might makes right'.
But in situations where the participants would like to remain anonymous, in situations where both parties would for reasons known to them rather avoid dealing with lawyers, the law and associated mechanisms smart contracts could become an enabling device.