In short, it would be a risk to permit a machine to anticipate new rules.
A better principle is to focus on the litigation and corporate work that is readily automatable—pattern identification and classification—and to delay software development on the more complicated tasks—analysis, interpretation and argumentation. But this author’s aware that a few questions might arise from this recommendation: is this proposed distinction between machine and human work collapsing as machine learning improves? And will companies look to displace law firms or their own in-house counsel with these new technologies?
 McKinsey & Company. (2018). Harnessing automation for a future that works.
Nevertheless, it is not a silver bullet against liquidation risks, especially when volatile assets are involved.
With a great variety of projects offering passive income possibilities, it is easy to get tempted away by new trendy ways of earning money. Yield Farming may bring good returns but farmers should be aware of risks and take steps to mitigate them.
Choose reputable projects with thoroughly audited code, work with less volatile assets, keep healthy borrow ratios and make sure you understand how the system operates.
Related read: Chainlink 2.0 introduces hybrid smart contracts
Chainlink has released a whitepaper outlining its plan to create the next generation of decentralized oracle networks.
Until algorithms start earning JDs, much of attorneys’ work will be safe. Second, new legal questions do not always fit the mold of past legal doctrine; as technology and business change, so do judicial and regulatory decisions.
Third, the law is dynamic: often jurists borrow from one area of the law to confront a new challenge in another. A machine might know everything about contracts law but it takes lateral thinking and reasoning by analogy to predict that a judge is about to borrow a tort law doctrine.
[ 🌐📩🔥 ]Smart Contract Security Best Practices
Visit the documentation site: https://consensys.github.io/smart-contract-best-practices/
Read the docs in Chinese: https://github.com/ConsenSys/smart-contract-best-practices/blob/master/README-zh.md Read the docs in Vietnamese: https://github.com/ConsenSys/smart-contract-best-practices/blob/master/README-vi.md
Contributions are welcome!
Feel free to submit a pull request, with anything from small fixes, to full new sections. If you are writing new content, please reference the contributing page for guidance on style.
See the issues for topics that need to be covered or updated.
They benefit from lending money to borrowers or investing in assets. DeFi industry cuts out an intermediary and allows people to close a deal directly with each other, making the whole process leaner, cheaper and more transparent.
However, these benefits come with a liquidation risk if the price of the collateral drops below the price of the loan.
In this case, it is no longer enough to cover the loan amount so it is liquidated, which means the user bears a loss.
For example, if a user takes a loan on Aave in BTC and provides his or her ETH as collateral, a significant BTC price increase will create a liquidation risk as the value of the ETH token provided as collateral will be less than the value of the borrowed BTC.
They will typically rely on commissioning an external organisation to conduct their audits.
Even if the organisation commissioning the external security audit is well-funded, multiple iterations through such an audit are likely to be time and cost prohibitive. Organisations therefore leave such audits as the last step before deploying their smart contract to their blockchain of choice.
In this world of agile development, this feels rather like going back to the old days of waterfall development. In short, manual security audits are simply not scalable.
A second approach which is now beginning to gain traction is the use of smart contract analysis tools that perform an automated review of the smart contract to identify vulnerabilities.
Largely because of this process, McKinsey reports that nearly a quarter of a lawyer’s job can be automated.  As a result, many law firms are looking to automate the document review process (top firms already outsource it).
But incentives are misaligned. Law firms generally bill by the hour, and clients already squeeze them to reduce hours charged.
One academic study concluded that just adopting existing machine learning could reduce lawyers’ billable hours by about thirteen percent.  Lawyers would make less money in the immediate future as a consequence.
They remind us that cryptographic ‘hashes’ and ‘consensus’ mechanisms already deliver advanced first layer security on the blockchain.
They do a great job of defining their terms as they introduce such things as decentralised applications, oracles, ERC-20 tokens and contract libraries.
They also compare the pros and cons of available automated smart contract analysers.
CAREERS IN SMART CONTRACT AUDITING
Co-author and CEO of Quantstamp, Richard Ma, predicts that an army of bright minds will be needed to secure smart contracts as their future use grows.
So, this book is an excellent primer and training resource for anyone exploring smart contract auditing as a career.
We quickly get a sense of the person spec required:
High attention to detail, logical thinker, ability to focus.
There are many smart contracts and protocols that are large, complex, and highly valuable that have avoided incidents, alongside the many that have been instantly exploited upon their launch.
Blockchain researcher Igor Igamberdiev took to Twitter to break down the makeup of the drained tokens. Tokens included $18.2 million in Wrapped Ethereum, $10.5 in MATIC tokens, and $2 million worth of WBTC. The haul also included smaller amounts of tokens for Wrapped Bitcoin, Chainlink, Unit Protocol, Aavegotchi, and Immutable X.
Only the latest DeFi hack
MonoX isn’t the only decentralized finance protocol to fall victim to a multimillion-dollar hack. In October, Indexed Finance said it lost about $16 million in a hack that exploited the way it rebalances index pools.
The expert team behind this book predict a future where smart contracts will transform how we transfer value and interact with each other. Accepting this, we’d better make sure these smart contracts are secure! But how?
One essential will be to write smart contract code that is free of bugs.
This book can help developers to do just that, as it shares examples, tips and best practice.
‘Fundamentals’ is a compact book of six Chapters, supported by over 100 references. It is an accessible read. A few sections are challenging, but the writing style is always clear and concise.
Each new blockchain feature or security challenge is carefully explained.
As a result, blockchain project managers, writers and enthusiasts may also find this a handy reference book.
PREVENTION BETTER THAN CURE
At its heart this book adopts the wisdom that prevention is better than cure.
- What are Smart Contracts in Crypto? (4 Examples + Animated)
- Deploy ERC-721 NFT Smart Contract That ACCEPTS MANY ERC-20 CRYPTO TOKENS AS PAYMENT TO MINT !!! 🤩🤑🤑
- NFT Smart Contract Explained with an Example: Kangaroos Wild World NFT
- How To Mint NFTs From The Smart Contract
- NFT Smart Contract Actions – How to Withdraw, Pause and Transfer Ownership !!