Counterfeit is a feature

Over and over again, suckers are losing their money in the Ethereum branch of the bitcoin crime. Ethereum makes it possible to write ‘smart contracts’ which order the blockchain to do certain things. Scammers write ‘contracts’ that empty the bank, or pay them twice what they put in, or tell the bank to ignore the bad signature.

This is always reported as a bug, but it’s a feature.

Smart contracts are just a fancy version of bank drafts or checks. A check is a contract that literally ORDERS the bank to PAY a specific amount to the bearer of the check.

The scammer, presumably in league with the bitcoin ‘bank’, knows how to code up a contract that gives him total control.

Real banks don’t allow customized checks which ORDER the bank to ignore the signature. Banks don’t regard smartness as cool. A check like this is a holdup note, not a smart contract.