Make your code immutable to avoid jailbreaks, advises Guide Executor Divs.

Developers of decentralized applications (DApps) must ensure that the smart contracts that support them can never be changed – that way they are less likely to be held liable for fraud on platforms, the policymaker says.

“From a regulatory perspective, this is really important,” CoinCenter Research Director Peter Van Valkenburg said at the 2024 Bitcoin Policy Summit in Washington, DC.

He said that Bitcoin developers who want to build DApps on the blockchain's Layer 2 networks who don't want to “end up in jail” should ensure that these smart contracts are implemented immutably from the start.

On the other hand, those who allow the smart contract to be turned on and off through a multi-signature mechanism or an administrative vote are more liable if illegal activities occur on the platform.

Choosing not to open source smart contracts is also not a smart decision, Van Valkenburg added.

“In that world, you have very serious questions about whether anyone is involved [is] Responsible for that smart contract activities […] I don't see those questions having good regulatory effects.

For Bitcoin developers, the Ethereum ecosystem serves as an interesting model for removing control points by truly building as one thing. [is] It is not controlled by any human decision,” Van Valkenburgh explained.

The recently dismissed Uniswap case illustrates the point. The court ruled that a person who developed computer code should not be held liable for misuse of that platform by a third party.

Related: Advocacy groups warn of ‘negative effects' on crypto after Tornado Cash co-founder

Tornado Cash's founding developer lawsuit shows that non-change-enforcement terms don't give developers immunity from suing.

Alexey Persev, the developer of CryptoMixer, spent eight months in prison in the Netherlands on suspicion of using the protocol for money laundering.

Fellow Tornado Cash developer Roman Storm has pleaded not guilty to conspiracy to operate a U.S. money transmitter or money laundering and sanctions. Another founder of the protocol, Roman Semenov, is on the roll.

Van Valkenburg said there will be more clarity in the US when the hurricane case is over.

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