Smart Contracts Challenges

•First, smart contracts are still in their infancy and getting accurately coded contracts that mimic real life expectations may be time consuming and even require the reengineering of some processes and the resetting of expectations. It is also important to have smart contracts audited for security flaws as these can provide opportunities for hackers.•Second, smartcontracts for funds transfers require that money is effectively placed in escrow until the smart contract terms are met. Even if operating in a fiat currency,this would likely create significant cashflow issues for some businesses that might not be offset by faster payments by their creditors. Cashflow challenges can be further complicated by the fluctuation of cryptocurrencies during the holding period, unless cryptocurrencies which are pegged to fiat currencies (called stable coins) are used or the values of cryptocurrencies stabilize.