According to the security firm PeckShield, a total of $480 million was stolen by hackers as a result of DeFi attacks that occurred in the first half of 2023. The main reason for these attacks was the mistakes made by smart contract developers while writing the contracts. The complex structures of smart contracts have been shown to lead to some logic errors and security vulnerabilities by programmers. However, it is seen as a positive development that developers seem to have learned from their past mistakes. As a result, the amount of money stolen in DeFi criminal activities decreased by 75% compared to the year 2022. This is a significant improvement considering that the total amount stolen by crypto hackers reached $2.5 billion last year.
Ethereum: A Fine Line Between Popularity and Security
Ethereum, the leader of the DeFi ecosystem, does not stand out as the blockchain network with the highest Total Value Locked (TVL). However, this popularity also increases the likelihood of being targeted by crypto hackers. The Ethereum network suffered a loss of $287 million due to these attacks.
Logic errors in smart contracts arise from coding a contract in an insecure manner. Hackers can exploit these types of errors to redirect funds and cause significant financial damage.
Oracles and Contract-Related Fund Losses
Oracles are blockchain-based services that fetch data from outside the blockchain. Oracle manipulation is a threat where attackers attempt to manipulate this data to influence smart contract decisions. However, the decrease in contract-related fund losses in the first half of this year indicates the effectiveness of measures taken in this regard.
In conclusion, the improvement of security measures on smart contracts and the DeFi ecosystem, along with the decrease in crypto criminal activities and illegal fund flows, demonstrate the maturity and increased security of the industry. However, it is important to remain vigilant and take further precautions against constantly evolving threats.
