SMART CONTRACTS AS LEGAL CONTRACTS • Like any code, smart contracts can be used to memorialize or effectuate conditions (promises) • Such a use is a subset of “computable contracts” or data-oriented contracts • However, promises memorialized using a smart contract can be designed such that they are more difficult to terminate and breach, if relying on a public and permissionless blockchain (i.e., “immutable” promises) • Because smart contracts can be designed in such a way that makes it difficult to halt the execution of code, they decrease the risk of non-performance and thus decrease monitoring costs 139 UNRESTRICTED