Smartcontracts are the escrows in Blockchain world. In a world that runs permissionless and trustless systems, smartcontracts serve as escrow to facilitate transactions between two entities.

Smart contracts are a technology that enables the execution of agreements without the need for intermediaries, using blockchain as a platform. They have many potential applications and benefits, but also some limitations and challenges. Whether they are overhyped or not is a matter of opinion, but here are some pros and cons of smart contracts that might help you form your own view:

Pros:

- Smart contracts are secure, transparent, and immutable. They are stored on a distributed ledger that is verified by multiple nodes, making them resistant to tampering, fraud, and censorship.

- Smart contracts can increase efficiency, reduce costs, and save time. They can automate transactions and processes that would otherwise require manual intervention, paperwork, or third-party verification.

- Smart contracts can enhance trust and reduce risks. They can eliminate the need for intermediaries that might be unreliable, biased, or corrupt. They can also enforce the terms and conditions of the agreement, ensuring that both parties fulfill their obligations.

- Smart contracts have wide applications and potential. They can be used in various fields and sectors, such as finance, healthcare, supply chain, voting, insurance, real estate, and more.

Cons:

- Smart contracts have limited functionality and flexibility. They can only execute predefined logic and cannot handle complex or dynamic situations that require human judgment, discretion, or intervention.

- Smart contracts are immutable and irreversible. Once deployed, they cannot be changed or modified, even if there are errors, bugs, or unforeseen circumstances. This can lead to undesired outcomes, disputes, or losses.

- Smart contracts lack legal recognition and enforcement. There is no clear regulatory framework or jurisdiction for smart contracts, making them difficult to validate, dispute, or enforce in case of conflicts or violations.

- Smart contracts are technically complex and challenging. They require a high level of programming skills, blockchain knowledge, and security measures. They are also prone to vulnerabilities, attacks, or hacks.

Smart contracts can increase efficiency, reduce costs, and save time. They can automate transactions and processes that would otherwise require manual intervention, paperwork, or third-party verification.

Smart contracts lack legal recognition and enforcement. There is no clear regulatory framework or jurisdiction for smart contracts, making them difficult to validate, dispute, or enforce in case of conflicts or violations.

Smart contracts are technically complex and challenging. They require a high level of programming skills, blockchain knowledge, and security measures. They are also prone to vulnerabilities, attacks, or hacks.

With these in mind you can see that the future of smartcontracts is uncertain, some Blockchains support smart contracts and some don't and each have their respective probability in the future of decentralized finance.

Here are three areas of thinking that may have influence on the future of smartcontracts.

Demand and adoption. Blockchains that do not support smart contracts might survive if they have a strong and loyal user base that values their specific functions and benefits, such as security, privacy, scalability, or simplicity. For example, Bitcoin is the most popular and widely used cryptocurrency, and it does not support smart contracts natively, although there are some projects that aim to enable smart contract functionality on top of Bitcoin, such as RSK or Lightning Network. Bitcoin users might prefer to use Bitcoin for its original purpose of peer-to-peer electronic cash, rather than for complex and sophisticated applications that require smart contracts.

Competition and innovation. Blockchains that do not support smart contracts might face challenges from other blockchains that do support smart contracts, especially if they offer better performance, lower costs, or more features. For example, Ethereum is the leading platform for smart contract development and deployment, and it hosts a variety of decentralized applications (DApps) that use smart contracts for various purposes, such as finance, gaming, social media, or governance. Ethereum users might prefer to use Ethereum for its versatility and innovation, rather than for simple and basic transactions that do not require smart contracts.

Regulation and compliance. Blockchains that do not support smart contracts might have an advantage or a disadvantage depending on the legal and regulatory environment of their target markets. For example, some jurisdictions might favor blockchains that do not support smart contracts, as they might be easier to monitor, audit, or tax, compared to blockchains that do support smart contracts, which might be more complex, opaque, or autonomous. On the other hand, some jurisdictions might favor blockchains that do support smart contracts, as they might enable more transparency, accountability, or efficiency, compared to blockchains that do not support smart contracts, which might be more prone to fraud, corruption, or human error.