Opinions

Ethereum’s Lack of Invention of its Smart Contracts is Damaging its Blockchain Ecosystem

Analysts from Northeastern University and the University of Maryland commenced a research study which shed light on how Ethereum’s lack of creation and diversity in its smart contracts is posing a negative impact on its blockchain ecosystem.

Smart contracts are basically a network that allow users to transfer value from one person to another without the need of a third party involvement. These contracts also exclude the risk that comes with the interference of the third party and also makes the transaction costs lower. The concept of smart contracts was basically introduced by bitcoin, however, as Ethereum followed, it also replaced bitcoin’s language that used a hundred or more scripts and simplified it by using a language that allowed even the users to write their programs themselves.

The research launched by the analysts, “Analyzing Ethereum’s Contract Topology” affirmed that majority of the  Ethereum smart contracts are either copied directly from other sources or are almost similar to other smart contracts. This puts Ethereum in a rocky position as there are chances of bugs in their codes since they are not written by Ethereum’s technical experts, and that puts them in a vulnerable state.

Since Ethereum’s origin in 2015, all of the blockchain technology’s smart contract byte-codes throughout its first 5 million blocks, that covers virtually a three year time-frame, have been analyzed in detail in the research which has also been backed by the US National Science Foundation.

The research done by the analysts also informs the issue that Ethereum smarts contracts are developed through other contracts by copying thrice more than that by users themselves. In addition, it also reports that almost 60% of the developed contracts have never even been used, while the 10% of contracts supported by the users are distinctive. There also has been a prominent use of the same codes on Ethererum, time and time again that is negatively affecting the Ethereum market ignoring the fact that this reuse of codes is the major cause behind Ethereum’s success in the crypto industry.

It is no secret that creating innovative and enough self-made Ethereum smart contracts has been an issue for the blockchain technology, knowing the fact that how is it affecting its market clearly. Most of the smart contracts developed on Ethereum have been a copy of other contracts which loses the essence of originality. So, the concept of creating new Ethereum smart contracts is a little unknown as of now.

As a result of copying other contracts, not only is Ethereum’s ecosystem facing damages but the blockchain technology has also become a victim of eminent bugs a lot of times by this common practice. This has resulted in freezing around $170 million worth of cryptocurrency. In the end of the research, it was concluded by the analysts that various executions of core contract functionality on Ethereum would help the blockchain technology form a better defense mechanism. And if the blockchain technology can capitalize on this matter then why not? They may as well do so.

Ethereum was established in 2015 by Vitalik Buterin, and is currently the second biggest cryptocurrency in the world of crypto with its market cap valued at around $20.6 billion, and its current price standing at $200, led by Satoshi Nakamoto’s bitcoin. Ethereum is basically an open-source, public blockchain-based distributed computing platform and operating system featuring smart contract functionality.

The technological bugs that followed the copying of other contracts by Ethereum users have several examples as proof of how this implementation is resulting into more of a failure than success for the blockchain technology and the sooner it realizes this fact, the better it will be for Ethereum.

A major example on this issue is the approximate loss of $38,000 for the innovative adult entertainment platform in the crypto industry, SpankChain and its users was recorded as a result of the security issues in the Ethereum smart contracts.

Moreover, another example on the technological bugs in Ethereum’s system occurred when OKEX suspended all the ERC-20 token deposits post detection of a new smart contract bug that gave hackers the opportunity to steal huge amount of tokens from other accounts and safely deposit them into other normal accounts without much pain.

Therefore, Ethereum smart contracts are allowing the tech mafias to exploit this weakness and cause damage to the blockchain technology’s ecosystem. As a result, this issue of lack of invention and diversity of the smart contracts on Ethereum must be fixed sooner than later as it isn’t doing Ethereum any more favors.

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Jaudat Sulehri

A management student, sports enthusiast and a writer. Jaudat gives his insights on the cryptocurrency in the world of trade and blockchain technology in particular. He also holds investments in XRP and BCH. Email: jaudat@blockpublisher.com or contact the editor at editor.opinions@blockpublisher.com

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