Blockchain smart contracts are self-executing contracts composed of computer code. These programs, which are executed by the entirety of the network, enforce the rules described within the code. Effectively, in this realm, code is law. And as we’ve seen recently, altering the outcome of that code after it has been deloyed, should we later realize that it was flawed or did not produce an intended result, can be messy. In addition, there are instances where human intervention can be necessary or even desirable. Take a mortgage agreement for example. Should a smart contract be entrusted with the responsibility of making a decision when the borrower can no longer make his payments? In cases such as this, subjective human intervention is be necessary. Scot Farrell and Claire Warren, lawyers at the global law firm King & Wood Mallesons, think that humans should not be automated out of every process. While code is logical and predictable, it cannot act reasonably or take into account certain unforeseen events. They have proposed DnA contracts (Digital and Analog), where automation can occur when absolute automation is possible, but where humans may intervene at the edges and provide input when needed. Topics covered in this episode: What issues DnA contracts are trying to address The basic concepts behind DnA contrats The scenarios where DnA contracts may be valuable Examples of DnA contracts applied to interest rate swaps and mortgages How DnA contracts could be integrated with blockchain technologies The impact of DnA contracts on legal services Episode links: How to use humans to make “smart contracts” truly smart DnA Contracts proposal on GitHub This episode is hosted by Meher Roy and Sébastien Couture. Show notes and listening options: epicenter.tv/142

Exchanges are often criticized as a central point of failure of the cryptocurrency space. This isn’t without justification as, in recent years, we have seen a number of exchanges get hacked, robbed, or embezzled by their founders, which is far from insignificant. One proposed alternative are decentralized exchanges that would allow people make peer-to-peer trades using sophisticated smart contracts. However, there remains the fundamental challenge of interfacing with the legacy banking system. Manfred Karrer joins us for a lengthy discussion on Bitsquare, a decentralized cryptocyrrency exchange which supports most fiat currencies and cryptocurrencies. Built to be a decentralized equivalent of LocalBitcoins, the Bitsquare client, which connects to the peer-to-peer network, uses Tor by default, which makes it almost completely anonymous. There are also a number of safeguards in place to eliminate the potential for fraud and theft, as well as an arbitration system to resolve disputes between traders. Topics covered in this episode: The motivation behind Bitsquare The Bitsquare client and user experience A walkthrough of a typical trade The mechanics of the order book The fiat currency transfer mechanism The current and future arbitration process Manfred’s thoughts on DAOs Bitsquare’s product roadmap Episode links: Bitsquare Website Bitsquare Whitepaper Risk Analysis Arbitration System Github Repo This episode is hosted by Meher Roy and Sébastien Couture. Show notes and listening options: epicenter.tv/140