What Is an ‘Upgradeable’ Smart Contract and Why Is It Controversial in the Context of Immutability?
An upgradeable contract uses a proxy pattern, allowing the logic to be swapped out by deploying a new implementation contract, while keeping the contract's state and address the same. This is controversial because it compromises the core blockchain promise of immutability, as a single entity or DAO can change the contract's rules after deployment.
While it allows for bug fixes, it reintroduces a level of trust and centralization risk.
Glossar
Upgradeable Contracts
Management ⎊ Upgradeable Contracts utilize proxy patterns to allow the logic of a deployed smart contract to be replaced or modified post-deployment, which is necessary for patching security vulnerabilities or evolving features in complex systems like options protocols.
Core Blockchain Promise
Decentralization ⎊ The core blockchain promise centers on creating a decentralized system that eliminates reliance on central authorities for financial transactions and data management.