Smart contract dependency refers to the reliance of one smart contract or decentralized application on the functionality, data, or state of another distinct smart contract. This interconnection allows for composability, where complex applications are built from simpler, modular components. However, it also means that vulnerabilities or failures in a dependent contract can affect others. Understanding these relationships is crucial for system stability.
Context
The state of smart contract dependency is a significant factor in the architecture of decentralized finance (DeFi), enabling innovative financial primitives. Its situation involves both benefits, such as enhanced functionality, and risks, including the potential for cascading failures if a foundational contract is exploited. A critical future development is the implementation of robust inter-contract auditing and risk assessment tools to manage these complex relationships.
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