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What Is the Risk of a Bug in a Smart Contract Compared to a Clause in a Traditional Contract?

A smart contract bug can cause immediate, irreversible, and automatic fund loss, whereas a traditional contract error requires human intervention.
Greeks.Live06.11.25

What Is the Risk of a Bug in a Smart Contract Compared to a Clause in a Traditional Contract?

A bug in a smart contract can lead to immediate, irreversible loss of funds due to its automatic and immutable execution. A faulty clause in a traditional contract, while problematic, usually requires legal intervention and human interpretation for resolution.

The speed and finality of a smart contract execution magnify the impact of a coding error.

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