Are Smart Contracts Good for You?

May 22, 2018

Smart contracts are self-executing contracts. The terms are written into lines of code, so no human factors can affect the execution. This makes them a powerful new tool, unbiased and dispassionate.

The health care industry sees smart contracts as the solution to cutting red tape, eliminating low-quality care, improving transparency and fighting double standards in medical insurance.

Your clinic would only receive your payment once they had fully performed their obligations toward you. Had your doctor overlooked something, and you weren’t aware? Smart contracts would protect your interests. But it also works the other way around — your health care provider would do no more and no less for you than they should.

Your insurance provider wouldn’t deny your claims just because the person you’d reached didn’t feel like it. A standard algorithm would determine who owed what to whom, and everyone would have known that in advance. And vice versa — no one would do you any favors when it came to medical insurance, simply because there would be no people involved.

The immutable smart contracts might well be the future of all day to day agreements. But don’t you think there should be some room left for good old human irrationality?