Evaluation of logic-based smart contracts for blockchain systems

Date: 28 June 2016While procedural languages are commonly used to program smart contracts in blockchain systems, logic-based languages may be interesting alternatives. In this paper, we inspect what are the possible legal and technical (dis)advantages of logic-based smart contracts in light of common activities featuring ordinary contracts, then we provide insights on how to use such logic-based smart contracts in combination with blockchain systems. These insights lead us to emphasize a fundamental challenge - algorithms for logic approaches have to be efficient, but they also need to be literally cheap as measured within the environment where they are deployed and according to its economic rules. We illustrate this with different algorithms from defeasible logic-based frameworks