The continuity of the wave function is preserved in the presence of a delta potential, but its derivative is not, which is crucial for satisfying the Schrödinger equation. The delta potential is considered "unphysical" as it represents a limit of very deep, narrow potential wells, which yield continuous wave functions with defined derivatives. Discussions highlight that while wave functions must be differentiable to meet the requirements of quantum mechanics, the delta function potential allows for discontinuous derivatives, complicating its mathematical treatment. The delta potential's significance in relativistic quantum mechanics is noted, as it aligns with Lorentz transformations, emphasizing its role in local interactions. Overall, the delta potential serves as a useful theoretical construct despite its mathematical challenges and lack of physical realization.