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.

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