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This is why there is no escaping a social solution to this problem. At the end of the day, there must be things like courts, police, etc. to adjudicate disputes about whether off-chain contractual requirements were fulfilled.
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I think you'll find yourself in agreement with most Bitcoiners that making the money trustless allows us to better coordinate trust in the social layer. The goal is always to build better social institutions on an incorruptible strong foundation.
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I am trying to provide an example: I and many others take delivery of real-world goods using multisig escrow to align incentives. I'm not talking about mathematics but practice.
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Yes, but the practice is just that: it's a social practice. Blockchain offers nothing new here. It has all the same problems as existing currency, with nothing to add. That is the point.
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