Imperial Chinese Solution Design contracts to minimize the cost to third parties of knowing who broke them Ownership goes with possession Caveat emptor-I am responsible for checking goods when I buy them Chop:A seal.The low tech version of a digital signature Put the temptation to breach on the party with a reputational incentive not to If the seller can be trusted,pay in advance If the buyer can be trusted,pay on receiptImperial Chinese Solution • Design contracts to minimize the cost to third parties of knowing who broke them • Ownership goes with possession • Caveat emptor—I am responsible for checking goods when I buy them • Chop: A seal. The low tech version of a digital signature • Put the temptation to breach on the party with a reputational incentive not to • If the seller can be trusted, pay in advance • If the buyer can be trusted, pay on receipt