So I read this yesterday and I still don't get what the practical applications of this are after you consider the risk and cost. Just in theory, how is it possible to prevent any type of Sybil attack when you have humans with registered accounts somewhere, or, if you can through incentives, then how will you do it cheaper than a centralized service? Also, what will prevent subjective outcome determinations - ie; say the graphic designer delivered the work but it's DEBATABLE whether or not that it was what was asked. You would need a centralized discussion about something like that, otherwise it's really risky for both parties to enter into that contract: 'oh what would a stranger think? Is this good enough or no?'
The team involved with
BetMoose (launched yesterday, check it out) is working toward the same end-vision but we strongly believe you need a single platform for these discussions and the handling of outcomes. We build reputation and incentives with our "hosts run the bet" strategy. We also use the word 'bet' instead of 'contract' because of our market research on the topic, though change every 'bet' on our page to 'contract' and you got yourself a smart-contract exchange.