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More attacks expected in DeFi space in 2023

A group of experts explained why DeFi could be witnessing more attacks from hackers in 2023

Shashank Bhardwaj
Published: Jan 9, 2023 06:25:28 PM IST

More attacks expected in DeFi space in 2023Image: Shutterstock

Top experts have warned about more cases of fraud and scams in the DeFi space as the industry is poised for an influx of new projects. Hackers have reportedly become accustomed to the latest changes in DeFi; thus, the industry could fall victim to further attacks. Top executives from blockchain firms such as Apostro, Beosin and HashEx were interviewed for Dropa’s report titled “An Overview of DeFi Security In 2022”.

The executives expressed their opinions on the surging attacks in 2022 and admitted that there was no guarantee of complete security despite improved safety due to DeFi protocols. Beosin’s Managing Director, Tommy Deng, stated that the number of hackers in the crypto market would not decrease as long as there was interest in the market. On top of that, he claimed that new DeFi projects are not subject to thorough security testing. The same opinions were that of the firm CertiK, which also doesn’t expect a reduction in scams. It also implied the possibility of increasing attacks on cross-chain bridges, which were the main target for attackers in 2022.

“The crypto industry is still relatively new, and everyone is growing with each other, so it’s difficult to get too far ahead of bad actors,” said Dmitry Mishunin, the CEO of HashEx, a crypto auditing firm. He added that the attacks on DeFi may also spill over to banks and crypto exchanges due to their claims of providing heightened solutions for storing digital assets. Tim Ismiliaev, Apostro’s co-founder, gave a more positive outlook and believed that once the industry matures over five years, better security prospects for DeFi protocols will emerge.

Mishunin and Deng both agreed on the same fact that blockchain developers don’t read post-incident reports and mostly remain busy coding. Such reports are only read by average investors who have invested their money in the crypto markets. Deng said, “The reentrancy vulnerabilities are now not as common as they used to be,” referring to how such reports don’t help developers.

The writer is the founder at yMedia. He ventured into crypto in 2013 and is an ETH maximalist. Twitter: @bhardwajshash

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