Dragonfly Partner: Smart contracts are hard to replace legal agreements, and cryptocurrencies are more like built for machines rather than humans

Deep Tide TechFlow News, February 19 — Haseeb, Managing Partner of the crypto venture capital firm Dragonfly, posted on X platform stating that despite being in the cryptocurrency industry, people still prefer to sign legal contracts in actual investment transactions rather than rely solely on smart contracts. Even when both parties are crypto-native institutions with technical capabilities and legal support, it is difficult to fully trust smart contracts as the only binding mechanism. Traditional banking systems have evolved over hundreds of years to incorporate risk control mechanisms designed around “human error”; in contrast, crypto systems are not human-friendly. Complex addresses, phishing attacks, authorization vulnerabilities, and gas mechanisms all conflict with human intuition. Therefore, cryptocurrencies may not be built for humans but for machines—an financial system prepared for automation. For example, AI agents can quickly verify contracts, analyze terms, and execute agreements, favoring deterministic code over legal systems with judicial uncertainties. Future crypto entry points will likely be self-driving wallets, where AI fully manages users’ assets within DeFi protocols, executes transactions, and even autonomously reaches economic agreements with other AI agents. Compared to the current mode of human-operated crypto protocols, this may only be a transitional phase. The “user-unfriendly” features of crypto systems might not be flaws but rather mismatches with user needs. Once AI becomes the main participant, the true application scenarios for crypto may become apparent.