Abstract
Nowadays, we are forced to join in a more and more complicated contract and a faster and faster transaction in the market. We are also seriously faced with security problems. As the society evolves, the related systems generally become complicated. The economic system, more specifically, the market system is not exempted from this law. This exactly means the advent of a new formula of it currently corresponding to the extent of complications. Without any incessant improvement of the digital technologies, our performance would not be smoothly achieved.
Given an idea of smart contract, blockchain becomes a broader computational technology to realize a set of smarter systems/transactions associated with the Distributed Ledger Technologies (DLT). Such a well-known instance is the smart contracts on the Ethereum platform, that is associated with account information each. The smart contract tied together with DLT actually enables to design an economically well-behaved set of Peer to Peer (P2P) system, which ranges over from the micro market to the international currency transaction system. The introduction of this technology may suggest what a truly decentralized future is. This must cast a new light on the problem how to design either auction or vote of P2P, i.e., without auctioneer or chairperson. Either of them will possibly mean the change of existing social consensus.
The DLT originally was designed by the presumption that someone always is malicious, as Byzantine Generals Problem suggests. The programming of smart contract is written in Turing complete language. A smarter solution against a complicated system actually then requires a stronger security against their vulnerabilities. Thus, the diffusion of blockchain technologies into the contract systems will demand a fully protective infrastructure. As Stephen Wolfram suggests, furthermore, “[a]s the number of DLTs grows, it becomes harder and harder to learn and build ecosystem tools to make monitoring transactions, smart contracts and services possible.” In other words, the diffusion of blockchain will bring newly some coordination problems as well as the new statistical examinations.
In this paper, after looking briefly the current features of digital contract, we will argue some evolutionary impacts on the digital ecosystem in the context of either smart contracts on the Ethereum platform or the Byzantine Generals Problem.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Similar content being viewed by others
Notes
- 1.
Even in the US, the figure is not so much different from this tendency.
- 2.
The May 6, 2010, Flash Crash, also known as the Crash of 2:45, the 2010 Flash Crash or simply the Flash Crash, was a United States trillion-dollar stock market crash. At this moment, about 9% of the stock prices was lost.
- 3.
The latter speed is not necessarily slow, if we compare it with the speed of our ordinary life. Sometimes it may be enough speedy.
- 4.
- 5.
See, for example: https://stackoverflow.com/questions/7284/what-is-turing- complete.
- 6.
The items described below is cited from https://www.coindesk.com/information/ethereum-smart-contracts-work.
- 7.
In the modern stock exchange, human auctioneer is replaced with computer server.
- 8.
See Common Knowledge, Stanford Encyclopedia of Philosophy https://plato.stanford.edu/entries/common-knowledge/.
- 9.
Cited from https://note.mu/rottenmarron/n/ne98508d1b958.
- 10.
- 11.
To detect the absence of message transmission, a time-out mechanism must work for message transmission.
References
Mirowski, P.: Markets come to bits: evolution computation and markomata in economic science. J. Econ. Behav. Organ. 63(2), 209–242 (2007)
Manski, S.: Building the blockchain world: technological commonwealth or just more of the same? Strat. Change 26(5), 511–522 (2017)
Pease, M., Shostak, R., Lamport, L.: Reaching agreement in the presence of faults. J. Assoc. Comput. Mach. 27(2), 228–234 (1980)
Schelling, T.: The Strategy of Conflict. Harvard University Press, Cambridge (1960)
Takago, T.: Kenro-na smart contract kaihatsu-no-tameno blockchain nyumon (Introduction of blockchain to develop a robust smart contract), Gijutsu-Hyoron-sha (2017). (in Japanese)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 Springer Nature Switzerland AG
About this paper
Cite this paper
Aruka, Y. (2020). The Rise of Smart Contract and Its Complex Impacts on the Digital Ecosystem. In: Sato, H., Iwanaga, S., Ishii, A. (eds) Proceedings of the 23rd Asia Pacific Symposium on Intelligent and Evolutionary Systems. IES 2019. Proceedings in Adaptation, Learning and Optimization, vol 12. Springer, Cham. https://doi.org/10.1007/978-3-030-37442-6_2
Download citation
DOI: https://doi.org/10.1007/978-3-030-37442-6_2
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-030-37441-9
Online ISBN: 978-3-030-37442-6
eBook Packages: Intelligent Technologies and RoboticsIntelligent Technologies and Robotics (R0)