Professors Max Raskin and Jack Millman from New York University School of Law have delved into the legalities surrounding blockchain-based smart contracts designed for "personal growth bets." These self-contracts, which individuals create with themselves, are aimed at fostering self-improvement by setting incentives and accountability. While the concept holds potential, questions about the enforceability and ethical limits of self-contracts remain. The professors propose using blockchain technology and "contractware" to enforce compliance with these contracts, highlighting the role of technology in self-motivation.
In a recent paper published in the Journal on Emerging Technologies, New York University School of Law professors Max Raskin and Jack Millman explore the legal considerations surrounding blockchain-based smart contracts designed for "personal growth bets." These self-contracts are single-party agreements created by individuals with the goal of fostering personal development or change.
The Concept of Personal Growth Bets:
Personal growth bets involve a single individual making a commitment to themselves to either start or stop a specific behavior within a defined timeframe. For example, an individual might set a bet to lose a certain amount of weight in six months. If successful, the individual may reward themselves with a treat or experience, while failure could result in a penalty, such as a financial payment.
The Role of Smart Contracts:
Raskin and Millman propose using blockchain-based smart contracts to enforce and monitor personal growth bets. These smart contracts would serve as both enforcers and monitors, eliminating the need for external oversight or involvement. The authors suggest utilizing "contractware," specialized hardware or technology, to measure or monitor the conditions of the bet. For instance, a breathalyzer could be used to verify compliance with a smoking cessation program.
Enforcement and Compliance:
In cases where users fail to meet the conditions of their personal growth bet, the smart contract would autonomously execute the agreed-upon penalties or actions. This could include forfeiting funds, donating to a charity, or other predefined consequences. The use of blockchain technology adds transparency and immutability to the enforcement process.
Legal Considerations:
While the concept of personal growth bets and blockchain-based self-contracts is intriguing, the legal implications remain somewhat unclear. Raskin and Millman argue that as long as these self-contracts involve valid "consideration" and do not violate any laws, they should be legally binding. However, they caution that certain extreme forms of self-contracts, such as those involving physical harm or endangerment, may face legal challenges due to ethical and legal restrictions.
The paper raises thought-provoking questions about the intersection of self-improvement, technology, and personal accountability. While the legal landscape for self-contracts continues to evolve, the potential for blockchain-based smart contracts to support personal growth and self-motivation is an area worth exploring further.
(TRISTAN GREENE, CoinTelegraph, 2023)