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Oliver Hart Smart Contract - ETH AI/ML Signal

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Oliver Hart, winner of the Nobel Prize in Economics for work on contract theory recently discusses smart contracts. He stated that smart contracts do not solve the problems of incomplete contracts that his work is focused on. He noted that smart contracts are not suited for the long term which is due to the long-term being hard to predict. An example he gave was that a factory might use a smart contract for and locate its factory near coal. If coal is not a good energy source in the future, the factory may not be incentivized properly.

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