I just saw Jeffrey Wilcke’s google hang out. it was helpful. i'm starting to wrap my head around this.
What i'm wondering is: how will end users or participants in a contract be able to know and verify what a contract does before they "invest"?
They would need to either:
a) trust a description of what the contract does. this would be some kind of flow chart of what a contract does?
or b) audit the contract code themselves to check that it does what it says.
I guess if a contract is simple and lots of people use it, then trust will be established and hence people will start to invest in it.
I would like to develop an ethereum DAO, but this would probably require quite a complex contract. there would be potential for bad code to cause issues with the operation or fairness of the DAO.
Alternatively, for something like a distributed drop box, the risk to end users caused by errors in the etherum code would be minimal, so this may be a better use case.
Anyway, just thinking out loud here....