OK so what are those efficiency gains?

Both scenarios require review by well trained specialist experts.

You can also similarly “gain efficiency” by signing complex contracts without consulting attorneys. Many people do for smaller scale agreements.

Where does the part happen where using computer code is cheaper than using a piece of paper?

> Where does the part happen where using computer code is cheaper than using a piece of paper?

That's the case for almost all internet technologies. In the case of smart contracts it allows instant settlement.

The FDIC insures deposits up to a limit, whether or not one uses online banking.

And eventually there will be smart contracts that are insured.

I'm not sure why you're being downvoted. I think this is a very reasonable projection. The technology isn't just going to stagnate, it's going to continue to evolve until it finds a useful place in the world. Having insured financial intermediaries executing smart contracts isn't a far fetched idea to me.