The Dark Side Of Smart Contracts

• tags: Smart contracts
• source: Business Tech Guides. “The Dark Side Of Smart Contracts.” Accessed February 7, 2022. https://businesstechguides.co/smart-contracts.

WHAT are Smart Contracts?

Blockchain-based programmes that execute agreements once certain criteria are fulfilled by all parties involved.

A self-executing piece of code. When it’s deployed on blockchain, meaning nobody controls it.

Analog a contract in the real world, for example, the contract you are signed with your landloard to lease an apartment. More like a vending machine: insert coins and receive a drink.

WHY are Smart Contracts Popular?

• Operate on the blockchain.
• Immutable.
• Simple and fast.

What are the Problems With Smart Contracts?

1. Reliance on External Data Sources

   Not all data stored in the blockchain, and blockchain cannot communicate with the outside world. Oracles are needed, but how can we trust the oracles?

   For example, I was received some tokens from The Open Source Software DAO, the oracle it relayed on is GitHub account.

2. Rigidity - The other side of immutable.

3. Confidentiality of Information - everybody can access the information on the blockchain.

4. Legal Status

5. Security Flaws - Bugs & Immutable.

6. Simplistic Operation - Too simple can’t carry too much functionality.