The Future of Self-Improvement?
New York University School of Law professors Max Raskin and Jack Millman have recently delved into the legal aspects of using blockchain-based smart contracts for personal growth bets. These contracts involve individuals making agreements with themselves to start or stop certain actions by a certain date or within a given timeframe.
Using Incentives to Succeed
The core argument put forward by Raskin and Millman is that incentives can significantly impact a person's ability to succeed in personal challenges. However, they argue that without accountability, these incentives are less likely to work. Smart contracts, they suggest, can serve as enforcers and monitors, allowing individuals to effectively hold themselves accountable without involving others.
How It Works
In their proposed scheme, a smart contract is created on the blockchain using "contractware" - hardware that measures or monitors the conditions of the bet to enforce compliance. For instance, if someone wants to quit smoking, they could place $10,000 in a smart contract that requires them to remain smoke-free for 30 days in order to retrieve the funds. In case of failure, the funds could be sent to a charity of their choice.
To ensure compliance, the researchers suggest the use of a carbon monoxide breathalyzer. If a user misses a check-in or fails a breathalyzer test, the smart contract would execute autonomously, resulting in the forfeiture of the user's stake.
Legalities and Boundaries
Although the concept seems straightforward, the legal implications surrounding self-contracts and their enforceability are somewhat unclear. Raskin and Millman argue that as long as the terms of the contract have legal "consideration," there should be no legal impediments preventing individuals from committing their own financial resources to these self-bets. However, they also emphasize the need for limits, especially considering the autonomous nature of smart contracts.
The researchers delve into a hypothetical case where an investor would be willing to install a bomb in their skull as a demonstration of their commitment to repay a loan, with the bomb set to explode if a payment is missed or tampered with. While this extreme example can be seen as a "strong" smart contract due to its high cost of revocation, it is unlikely to be legal due to laws against suicide and promoting suicide.
The Future of Personal Growth?
As personal growth and self-improvement continue to be popular goals, blockchain-based smart contracts could hold great promise in helping individuals stay accountable to themselves. However, the legal framework and boundaries for such contracts must be carefully considered as this technology evolves.
