What Is the Concept of “Immutability” and Why Is It a Risk Factor in Smart Contract Errors?

Immutability means that once a smart contract is deployed to the blockchain, its code cannot be changed or updated. While this guarantees trust and censorship resistance, it turns a bug or vulnerability into a permanent, unfixable risk.

If a critical error is found, the funds locked in the contract may be permanently lost or exploitable by malicious actors, leading to significant financial losses.