13: F.3. Blockchain and Smart Contracts

Question 1

What are the types of risks that can be in a blockchain?

Answer 1

1- Operational risk: the regulation is not clear, and the customer will not be protected
2- Cybersecurity Risk: your wallet may be hacked or your computer
3- Speculative risks: Crypto prices go up and down very quickly.
4- Fraud and manipulation risk: Scammers are everywhere.

Question 2

Smart contracts have Risks. What are they?

Answer 2

1- Operational Risk: like when the system crashes, no backup, no recovery plan, or the system goes down

2- Technical Risk: bad internet, bugs in the smart contract,

3- Cybersecurity Risk: hackers steal private key, change in the original data