What are the potential challenges and limitations of using ERC 2981 in the digital currency ecosystem?

3 answers

• Nov 23, 2021 · 3 years ago
  One potential challenge of using ERC 2981 in the digital currency ecosystem is the lack of widespread adoption. Since ERC 2981 is a relatively new standard, not all digital currency platforms and exchanges may support it. This could limit the liquidity and accessibility of tokens that utilize ERC 2981. However, as the standard gains more recognition and acceptance, this challenge may gradually diminish. Another limitation is the potential for regulatory scrutiny. As ERC 2981 allows for the automatic distribution of royalties to token holders, it may attract attention from regulatory bodies that oversee securities and financial transactions. This could lead to additional compliance requirements and potential legal hurdles for projects utilizing ERC 2981. Additionally, the complexity of implementing ERC 2981 can be a challenge for developers. The standard requires careful consideration of various factors, such as royalty calculations, token transfers, and contract interactions. This complexity may result in longer development cycles and increased costs for projects looking to integrate ERC 2981. Overall, while ERC 2981 offers exciting possibilities for the digital currency ecosystem, challenges such as limited adoption, regulatory scrutiny, and implementation complexity should be taken into account.
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• Nov 23, 2021 · 3 years ago
  Using ERC 2981 in the digital currency ecosystem can present challenges and limitations. One challenge is the need for education and awareness among users and developers. Since ERC 2981 is a new standard, many people may not be familiar with its features and benefits. This lack of understanding can hinder its widespread adoption and usage. Another limitation is the potential for scalability issues. As more projects and tokens adopt ERC 2981, the network may experience congestion and slower transaction speeds. This could impact the overall user experience and hinder the growth of the digital currency ecosystem. Furthermore, the reliance on smart contracts introduces the risk of vulnerabilities and security breaches. Smart contracts are not immune to bugs and vulnerabilities, and any flaws in the implementation of ERC 2981 could be exploited by malicious actors. This highlights the importance of thorough testing and auditing of smart contracts before deploying them in the digital currency ecosystem. In conclusion, while ERC 2981 brings new possibilities to the digital currency ecosystem, challenges such as lack of awareness, scalability issues, and security risks should be carefully considered and addressed.
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• Nov 23, 2021 · 3 years ago
  Using ERC 2981 in the digital currency ecosystem can have its challenges and limitations. One potential challenge is the interoperability with other standards and protocols. Since ERC 2981 is specific to the Ethereum blockchain, it may not be compatible with other blockchain networks or digital currency platforms. This could limit the reach and potential partnerships for projects utilizing ERC 2981. Another limitation is the potential for market manipulation. The automatic distribution of royalties to token holders may create incentives for market manipulation, as individuals or groups may accumulate tokens to receive higher royalties. This could distort the market and undermine the fairness and integrity of the digital currency ecosystem. Additionally, the reliance on smart contracts introduces the risk of coding errors and vulnerabilities. Any bugs or vulnerabilities in the smart contract code could lead to financial losses or security breaches. Thorough code review, testing, and auditing are essential to mitigate these risks. In summary, while ERC 2981 offers exciting possibilities for the digital currency ecosystem, challenges such as interoperability, market manipulation, and smart contract risks should be carefully considered and addressed.
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