Dragonfly Partner: Smart Contracts Cannot Replace Legal Contracts; Cryptocurrencies Are More Like They Were Built for Machines Than Humans

Haseeb, Managing Partner of crypto venture capital firm Dragonfly, wrote on the X platform that despite being in the cryptocurrency industry, people still choose to sign legal contracts rather than rely solely on smart contracts in actual investment transactions. Even if both parties to a transaction are crypto-native institutions with technical capabilities and legal counsel, it is difficult to completely trust smart contracts as the sole binding mechanism. Traditional banking systems have evolved over hundreds of years, designing risk control mechanisms around "human error"; however, crypto systems are not human-friendly. Complex addresses, phishing attacks, authorization vulnerabilities, and gas mechanisms all contradict human intuition. Therefore, cryptocurrencies may not be built for humans, but rather a financial system prepared for machines. For example, AI agents can quickly verify contracts, analyze terms, and execute agreements, preferring to trust deterministic code rather than legal systems with judicial uncertainty. The future crypto entry point will be the self-driving wallet, where AI fully represents users in configuring assets, executing transactions, and even automatically reaching economic agreements with other AI agents. In comparison, the current model of humans directly operating crypto protocols may only be a transitional phase. The "human-unfriendly" characteristics of encryption systems may not be flaws, but rather a lack of suitable users. The true suitable scenarios for encryption may emerge when AI becomes the main participant.