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This is easy to fix. The SpacetimeDB folks could just add a phase to analyze the application developer’s code before running it to prove that it will definitely halt.

the halting problem?

i think that's the joke, my friend

This is why you need to compile your code for spacetimedb to WebAssembly and it runs inside a VM. Use the language of your choice, and assume the code is only semi-trusted with the ability to have a watchdog. That part makes sense.

I'm a SpacetimeDB dev. We do not need to trust them, we employ a system like Ethereum's gas limits to prevent infinite loops.