Developers creating decentralized applications (DApps) must ensure that the underlying smart contracts are unchangeable, according to a policy executive. Peter Van Valkenburgh, research director at Coin Center, emphasized the importance of immutability at the 2024 Bitcoin Policy Summit. He advised Bitcoin developers building DApps on layer 2 networks to enforce immutability in their smart contracts to avoid legal repercussions. Conversely, developers who allow smart contracts to be altered via multisignature mechanisms or governance votes may be held liable for any illegal activities on the platform. Van Valkenburgh also stressed the significance of open-sourcing smart contracts. He cited the Ethereum ecosystem as a model for avoiding regulatory challenges by building platforms that are not controlled by human discretion. The recent dismissal of the Uniswap lawsuit supported his argument, as the court ruled that code developers should not be held responsible for the misuse of their platforms. However, the indictment of Tornado Cash’s developers highlighted that immutability-enforced contracts do not guarantee freedom from prosecution. The case of Tornado Cash’s developer, Alexey Pertsev, who was detained in the Netherlands for suspected involvement in money laundering, serves as an example. Meanwhile, Roman Storm, another Tornado Cash developer, has pleaded not guilty to charges related to money laundering and sanctions evasion in the United States. The case of Storm will provide further clarity on legal matters in the US. The race to develop safe and legal coin mixers, such as Tornado Cash 2.0, continues.
Policy executive advises developers to make their code immutable to evade imprisonment.