Dragonfly Partner: Smart Contracts Can't Replace Legal Contracts, Cryptocurrency Is More Suited for Machines Than Humans

Odaily News According to a post on X by Haseeb, Managing Partner of crypto venture capital firm Dragonfly, despite being in the cryptocurrency industry, people still choose to sign legal contracts in actual investment deals rather than relying solely on smart contracts. Even when both parties in a transaction are crypto-native institutions with technical capabilities and legal counsel support, it is difficult to fully trust smart contracts as the sole binding mechanism. The traditional banking system has evolved over centuries, designing risk control mechanisms around "human error"; whereas crypto systems are not user-friendly to humans. Complex addresses, phishing attacks, authorization vulnerabilities, and the Gas mechanism all run counter to human intuition. Therefore, cryptocurrency might not be built for humans but rather is a financial system prepared for machines. For example, AI agents can quickly verify contracts, analyze terms, and execute agreements, tending to trust deterministic code more than a legal system with judicial uncertainty. The future gateway to crypto will be Self-Driving Wallets, where AI fully acts on behalf of users to allocate assets in DeFi protocols, execute transactions, and even automatically reach economic agreements with other AI agents. In comparison, the current model where humans directly operate crypto protocols might just be a transitional phase. Those "user-unfriendly" features of crypto systems may not be flaws but rather a mismatch with current users. When AI becomes the primary participant, the true suitable scenarios for crypto may become apparent.