According to analytics company CipherTrace, in 2020, DeFi projects accounted for about half of all hacker projectsattacks in the cryptocurrency industry. Dmitry Volkov, CTO of CEX.IO, gave his view on how the industry will develop further.
2020 is the year of the hype for DeFi projects. Despite the fact that many of them have existed for a long time, they have gained popularity right now.
Most DeFi hacks are based onvulnerabilities associated with errors in the source code. Errors in applications occur for various reasons, and it is these errors that cause vulnerabilities and subsequent hacks of such applications.
Most even advanced users don'tcheck whether or not they can check whether the application has errors and whether you can trust your funds to this application. To solve this problem, technical audits were invented - these are experienced programmers, experts who check the code of a specific application, who declare that there are no errors in it, and people trust this opinion. Large reputable DeFi projects must pass such audits.
If such errors did not bother anyone before, thenNowadays, huge amounts of money are being invested in DeFi projects, and such projects have now become the desired target of hackers. Cybercriminals look for errors in DeFi protocols and exploit them for their own benefit. The more popular DeFi projects become and the more capital flows through them, the more it will attract hackers and the more hacks there will be.
Such a rapid increase in hacking leads toto a different effect. DeFi projects are increasingly undergoing technical audits to find and avoid mistakes, and projects with obvious vulnerabilities die off and leave the market after high-profile hacks and loss of reputation. Thus, only the most reliable projects remain on the market. Given the trend, over time, the number of hacked DeFi projects will fall, as the projects themselves will become more reliable, make fewer mistakes, and only those projects will remain on the market that have paid enough attention to security and protection against attacks.
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