Connect with us

Hi, what are you looking for?

SOL41.257.37%DOGE0.077.19%USDC1.000%BNB237.345.9%AVAX25.5410.51%XLM0.108.47%
USDT1.000%XRP0.349.12%BCH170.005.97%DOT7.537.72%ADA0.416.8%LTC55.309.34%
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Business

Business

In 2021, the most decentralized finance hacks were caused by centralization

In 2021, The Most Decentralized Finance Hacks Were Caused By Centralization
The Most Decentralized Finance Hacks Were Caused By Centralization/courtesy The Most Decentralized Finance Hacks Were Caused By Centralization/courtesy
In 2021, The Most Decentralized Finance Hacks Were Caused By Centralization
The Most Decentralized Finance Hacks Were Caused By Centralization/courtesy The Most Decentralized Finance Hacks Were Caused By Centralization/courtesy

Listen to the article now

According to a recent report by security-focused ranking platform CertiK, centralization issues have emerged as the main attack vector in decentralized finance (DeFi), facilitating the largest share of hacks — with USD 1.3 billion worth of user funds stolen in 44 DeFi attacks last year.

According to CertiK’s experts, during the 1,737 audits they conducted in 2021, they discovered 286 discrete centralization risks.

According to the report, data on the impact of centralization on DeFi security “underscores the importance of decentralization and highlights the fact that many projects still have work to do to achieve this goal.”

It went on to say,

“Centralization is incompatible with DeFi’s ethos and poses significant security risks.” Dedicated hackers and malicious insiders alike can take advantage of single points of failure.”

Last November, the DeFi lending protocol bZx (BZRX) was discovered to have been exploited for over USD 55 million as a result of private key mismanagement — serving as an example of privileged ownership that allowed the attackers to gain complete control of all contracts controlled by the key. According to the study, privileged ownership was discovered 76 times in the company’s audits.

CertiK’s auditors discovered missing event emissions as the second most common potential vulnerability after centralization risks, in 211 cases.

Another common code error discovered by the firm’s experts was the use of an unlocked compiler version, which occurred 176 times, and CertiK’s experts discovered 104 lines of code that lacked proper input validation.

According to the report’s figures, reliance on third-party dependencies was another identified potential source of trouble, with 102 instances.

CertiK, founded in 2018 by Yale and Columbia University professors, claims to specialize in blockchain security, employing artificial intelligence (AI) technology to secure and monitor blockchain protocols and smart contracts. There are 1,464 projects on the company’s security leaderboard, with a total market capitalization of USD 291 billion.

READ MORE:


Comment Template

You May Also Like

Tim Cook

The Journey of Tim Cook

8 min read

Timothy D. Cook is the chief executive officer (CEO) of Apple Inc. Timothy graduated from Auburn University with a bachelor’s degree in industrial engineering. Later on, Crook attained an MBA fr...  Read more

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok