We explain the mechanics of smart contracts. We then highlight benefits of smart contracts such as overcoming commitment problems. We also discuss limitations such as the difficulty for smart contracts to access information external to the blockchain and the difficulty of integrating smart...

This brief essay is a working draft of an article in preparation for the forthcoming International Encyclopedia of the Social Sciences, 2nd ed., examining the role of the monetary base in monetary economics and monetary policymaking. Comments are welcome

An agent decides whether to approve a project based on his information, some of which is verified by a court. An honest agent wants to implement projects that are likely to succeed; a dishonest agent wants to implement any project. If the project fails, the court examines the verifiable information...