ABSTRACT
Block-chain technology has the potential to eliminate one of the most significant barriers to economic growth through private business transactions in developing countries – lack of trust. In a typical developed country, individuals and firms conduct transactions within an institutional environment that offers security through the enforcement of agreements. Transparent and effective courts, while imperfect to be sure, enable parties to feel secure in their transactions even if their level of trust in the other party is low. This security, in turn, facilitates transactions far afield from high-trust relationships (eg, immediate relatives), generating transactions based upon economic value rather than party trust alone. Developing countries often lack effective or transparent institutions and are frequently plagued with corruption that weakens substantially their level of security in economic transactions …
Fandl, Kevin, Can Smart Contracts Enhance Firm Efficiency in Emerging Markets? (May 1, 2020). Northwestern Journal of International Law and Business, volume 40, no 335, 2020.
First posted 2020-08-18 05:01:57
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