Smart Contracts #2 Flashcards
What is an oracle in smart contracts?
A third-party service that fetches and verifies external data for on-chain use.
Why do smart contracts need oracles?
They lack native access to off-chain events like price feeds or sports results.
What can go wrong with a bad oracle?
False data can trigger incorrect executions and financial losses.
Define minimal design for smart contracts.
Keeping code as simple as possible, focusing only on core functionality.
Benefit of minimal design?
Fewer lines of code mean fewer bugs and easier auditing.
What is an emergency stop?
A pattern that lets admins pause contract operations in emergencies.
Purpose of a rate limiter?
It caps the number of times a function can be called to prevent overload.
Why use delayed actions in contracts?
To introduce a time buffer, allowing intervention before critical changes.
Limitation: grey-area handling?
Contracts can’t process subjective terms or adapt to unforeseen nuances.
Limitation: legal uncertainty?
Code execution doesn’t guarantee legal enforceability under existing laws.
