Smart Contracts That Go Bad: Sagewise Offers A Solutionbr>
In the tech world, smart contracts are considered to be both fair and infallible, but there are a lot of issues with self-executing contracts that no one talks about. For example, millions of dollars are reportedly lost each year in smart contracts disputes.
Founded in 2017, Sagewise is a technology company focused on the efficient resolution of disputes involving smart contracts. Sagewise has developed a product comprising a smart contract safety net for blockchain users. The company’s proprietary SDK, released in April, provides the tools and infrastructure needed for the effective handling of disputes at any stage in the development and execution of smart contracts, freezing contracts in place while they are being resolved. Sagewise’s mission is to provide peace of mind to all parties to a smart contract, ensuring that the outcome of a blockchain endeavor is consistent with the parties’ true intent.
“We believe justice should be decentralized, so our objective is to provide smart contract users a toolkit to settle errors and disputes, lest they end up with unintended outcomes. Smart contract losses exceeded half a billion U.S. dollars in value in 2017, so we feel it is integral to address the void in the industry,” said Amy Wan, co-founder and CEO of Sagewise. “In order to reach our objectives, we knew scaling was of utmost importance, which is why we decided to work with Hedera Hashgraph. Its technology does not have the technical limitations of the existing blockchain, and provides distributed consensus.”
Wan answer some Block Tribune questions;
BLOCK TRIBUNE: How often do things go badly with smart contracts?
AMY WAN: Regularly. Often, you’ll see reports in the news about major hacks, and they often have to do with smart contracts. The DAO hack and parity wallet hacks were, in part, issues with the smart contract.
BLOCK TRIBUNE: What are the main reasons? Are they technological? Is it because people don’t live up to the terms? Or something else?
AMY WAN: Smart contracts may have coding errors or security vulnerabilities. At the same time, while code is static, human situations are not, so people will need the ability to amend or “upgrade” and dispute their smart contracts because it is impossible to code for every possible situation
BLOCK TRIBUNE: Beyond litigation, is there any solution, particularly as ICOs and companies are increasingly domiciled outside the United States?
AMY WAN: With litigation, the parties may never even recover funds or resolve their dispute. There are just a lot of problems with litigating smart contracts as they are today–smart contracts are written in code, and its difficult for counsel, judges, and jurors to read or understand code. And even if a smart contract dispute is resolved, collections and enforcement from the smart contract is near impossible, since someone would have to hack the smart contract. Sagewise’s approach is to provide an infrastructure to allow for efficient, timely resolution of everything that might go wrong with a smart contract.