Andrew has $20 Dollars and wants Lasagna.
Christine has Lasagna and wants $25 Dollars.
Contract script:
Andrew Offer $20
Andrew Terms Lasagna
Christine Terms $25
Andrew Accept
Computer Notice "This is a legal binding contract."
Christine Deliver Lasagna
Andrew Deliver $25
Computer Notice "Contract complete."
Computer is performing as the lawyer above. This introduces the idea of Computer as a legal entity. You could create a contract between a Computer and a Human with specific Terms, such as the Human must keep the computer running and the Computer must keep the ledger.
Example of a 3-party equilateral contract
Scenario:
Andrew has Dollars and wants Yen.
Matthew has British Pounds and wants Dollars.
Since we have non-matching value, we advertise on Bank of England's book and also market it on Forex.
Bank of Japan sees the opportunity and translates the value.
Contract script:
CommerceID EventType Description
Andrew Offer 2,000 USD
Andrew Terms 200,000 JPY
Computer Notice "This is a legal offer from Andrew."
Matthew Offer 1,500 GBP
Matthew Terms 2,000 USD
Computer Notice "This is a legal offer from Matthew."
Andrew Terms 210,000 JPY
Andrew Counter
Computer Notice "Terms-value change from Andrew."
Matthew Terms-Advertise Bank of England
Matthew Counter
Computer Notice "Terms-Advertise change from Matthew."
Andrew Terms-Advertise Forex
Andrew Terms-Advertise Bank of England
Andrew Counter
Computer Notice "Terms-Advertise change from Andrew."
Matthew Accept
Computer Notice "This is a 2-party legal offer."
Bank of Japan Offer 210,000 JPY
Bank of Japan Terms 1,500 GBP
Computer Notice "This is a 3-party equilateral contract between Andrew, Matthew, and Bank of Japan."
Andrew Deliver 2,000 USD
Matthew Deliver 1,500 GBP
Bank of Japan Deliver 210,000 JPY
Andrew Complete
Matthew Complete
Bank of Japan Complete
Computer Notice "Contract complete"
This is a 3-party contract and can be used to settle currencies or for barter.
Example of a 3-party equilateral contract
Scenario:
Andrew has Dollars and wants Yen.
Matthew has British Pounds and wants Dollars.
Since we have non-matching value, we advertise on Bank of England's book and also market it on Forex.
Bank of Japan sees the opportunity and translates the value.
Contract script:
CommerceID EventType Description
Andrew Offer 2,000 USD
Andrew Terms 200,000 JPY
Computer Notice "This is a legal offer from Andrew."
Matthew Offer 1,500 GBP
Matthew Terms 2,000 USD
Computer Notice "This is a legal offer from Matthew."
Andrew Terms 210,000 JPY
Andrew Counter
Computer Notice "Terms-value change from Andrew."
Matthew Terms-Advertise Bank of England
Matthew Counter
Computer Notice "Terms-Advertise change from Matthew."
Andrew Terms-Advertise Bank of England
Andrew Counter
Computer Notice "Terms-Advertise change from Andrew."
Matthew Accept
Computer Notice "This is a 2-party legal offer."
Bank of Japan Terms 1,500 GBP
Computer Notice "This is a 3-party equilateral contract between Andrew, Matthew, and Bank of Japan."
Andrew Deliver 2,000 USD
Matthew Deliver 1,500 GBP
Bank of Japan Deliver 210,000 JPY
Andrew Complete
Matthew Complete
Bank of Japan Complete
Computer Notice "Contract complete"
This is a 3-party contract and can be used to settle currencies or for barter.
