According to research carried out by a group of analysts from Northeastern University and the University of Maryland, the lack of diversity in smart Ethereum contracts poses a threat to the entire Blockchain Ethereum ecosystem.
The document entitled "Analyzing the topology of Ethereum contracts" claims that most of the smart Ethereum contracts are "direct or nearly copies of other contracts", which is a potential risk if the copied intelligent contract contains a bug or vulnerable code.
Partly supported by the US National Science Foundation, the study analyzed the bytecodes of the intelligent Ethereum contracts from the first 5 million blocks, which covers almost three years from the cryptocurrency in 2015. The researchers also collected and modified data through the Ethereum virtual machine called the "geth" in order to catalog all interactions between contracts and their users.
Currently, intelligent Ethereum contracts are created three times more often by other contracts than by users. The study showed that Ethereum code, which allegedly can have a "wide impact on Ethereum users' population, is often reused, despite the fact that it is" the driving force behind Ethereum's success ".
Considering the low diversity of intelligent contracts on Ethereum as a potential risk for the entire Blockchain ecosystem, the researchers mentioned that ETH has become the subject of "high profile errors" several times, resulting in the freezing of cryptocurrencies worth over 170 million dollars. The final part of the document says that many implementations of the "basic contract functionality" at Ethereum would ultimately provide greater and in-depth protection.
Let's now take a look at the Ethereum technical picture at the H4 time frame. The price has spiked above the technical resistance zone located between the levels of $204-$206 and almost hit the next technical resistance zone located between the levels of $214-$216. Nevertheless, the market reversed a little and is currently trading just above the $200 level. The momentum is still positive, but is getting weaker so a further pull-back might be in play now. Dropping stochastic indicator supports the short-term bearish outlook.
