What are the limitations of smart contracts in the context of Ethereum and digital currencies?

3 answers

• Dec 15, 2021 · 3 years ago
  Smart contracts have revolutionized the way transactions are conducted in the digital currency space. However, they do have certain limitations. One major limitation is the lack of flexibility. Once a smart contract is deployed on the Ethereum blockchain, it cannot be modified or updated. This means that if there are any bugs or errors in the code, they cannot be fixed without deploying a new contract. Another limitation is the reliance on external data sources. Smart contracts are unable to directly access data from the internet, which can limit their functionality. Additionally, the complexity of writing smart contract code can be a barrier to entry for developers, which may slow down the adoption of smart contracts in the digital currency industry.
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• Dec 15, 2021 · 3 years ago
  Smart contracts are great and all, but they're not perfect. One limitation is that they can't interact with external data sources directly. So if you want to use real-time data in your smart contract, you'll have to rely on oracles or other external services. Another limitation is that smart contracts on Ethereum are subject to gas fees. Every operation in a smart contract requires a certain amount of gas, which is paid in Ether. This can make executing complex or frequent transactions expensive. Lastly, smart contracts are not immune to bugs or vulnerabilities. We've seen instances of smart contracts being hacked or exploited, leading to significant financial losses. So it's important to thoroughly audit and test smart contracts before deploying them.
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• Dec 15, 2021 · 3 years ago
  As a representative of BYDFi, I can say that one limitation of smart contracts in the context of Ethereum and digital currencies is the potential for scalability issues. Ethereum's current network capacity is limited, which means that as more smart contracts are deployed and more transactions are processed, the network can become congested and slow. This can lead to higher transaction fees and longer confirmation times. However, Ethereum is working on solutions like Ethereum 2.0 to address these scalability issues and improve the overall performance of smart contracts.
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