Question

A financial services firm is deploying a smart contract on a public blockchain to automate loan disbursements. During a pre-deployment risk review, a risk practitioner notes that once deployed, the contract code cannot be modified. Which risk implication should the practitioner prioritize when advising the project team?

Accepted Answer

Coding errors or logic flaws in the contract cannot be corrected after deployment, requiring rigorous pre-deployment validation and testing

Answer

Transaction throughput on public blockchains may be too slow for real-time disbursements

Answer

Blockchain nodes may consume excessive electricity, raising sustainability concerns

Answer

The distributed ledger will increase storage costs across the participating nodes