What are the cons smart contracts have?

Smart contracts are not that perfect, after all.

Here are some of the issues smart contracts might have:

  • Human factor

The code is written by people, and they can make mistakes. If the smart contract is in the Blockchain, it couldn’t be changed. A good example of the human error is The DAO. Developers’ mistakes in the code were costly for the users and the company – some hackers exploited errors and stole about $60 mln.

  • Uncertain legal status

Currently, smart contracts are not regulated by any government. So there is a potential issue if governmental institutions decide to make a legislative framework for smart contracts.

  • Implementation costs

Smart contracts cannot be performed without programming. It is essential to have an experienced coder on the staff to make fail-proof smart contracts and adopt the internal structure of the company for Blockchain technology.

Next PagePrevious Page

Similar Posts

Add your comment

Your email address will not be published. Required fields are marked *