On the use of smart hybrid contracts to provide flexibility in algorithmic governance

Abstract

The use of computer technology to automate the enforcement of law is a promising alternative to simplify bureaucratic procedures. However, careless automation might result in an inflexible and dehumanized law enforcement system driven by algorithms that do not account for the particularities of individuals or minorities. In this article, we argue that hybrid smart contracts deployed to monitor rather than blindly enforce regulations can be used to add flexibility. Enforcement is a suitable alternative only when prevention is strictly necessary; however, we argue that in many situations a corrective approach based on monitoring is more flexible and suitable. To add more flexibility, the hybrid smart contract can be programmed to stop to request the intervention of a human or of a group of them when human judgment is needed.

Keywords

• algorithmic governance
• blockchains
• computational law
• hybrid contracts
• law automation
• monopolistic competition
• preventive law
• smart contracts