Hackers continue to “involve” the blockchain refuses to “lay flat”

As the most secure and decentralized transaction system available today, blockchain is making progress, but is it really the best choice?

For a long time, blockchain technology has been hailed as the ultimate solution for solving high fees, centralized payment systems and cybercriminals, and enjoys a certain reputation in the payment solution market.

In August of this year, a lone hacker stole $600 million from the international cryptocurrency exchange Poly Network .

This incident caused people’s shock and anxiety, not only because of the scale of the “robbing”, but also the largest amount of money theft in the history of DeFi. The hacker claimed to be looking for system vulnerabilities in just “a few hours”. This feat was completed afterwards. As a seemingly “thumbs up” gesture to technical experts, the perpetrators subsequently posted a question-and-answer guide for their hacking process on the social networking site Twitter, which was only 24 hours after the incident.

Subsequently, the funds were returned, and the hacker admitted that the theft was carried out to prove a point and emphasized the loopholes in the DeFi (decentralized financial) system used by Poly Network.

Hackers continue to "involve" the blockchain refuses to "lay flat"

Are hackers also “involved”? Preference to attack DeFi  

The Poly Network theft case emphasized that the DeFi system using blockchain technology may have serious loopholes. This case is not the first DeFi to happen in 2021. Data shows that cyber crimes against blockchain entities are on the rise, and hackers also prefer to attack DeFi-related projects. for example:

  • In February 2021, Year Finance was stolen $11 million by hackers.
  • In the same month, Alpha Finance was stolen $37 million by cybercriminals.
  • In March 2021, Meerkat Finance suffered a loophole, and its account was stolen 32 million US dollars.

This shows that no system has absolute security.

In the end, this incident proved that no system in use today can be claimed to be “unhackable.” In fact, the recent series of vulnerabilities even prompted the Bank of England to state its position on digital currencies and decentralized systems.

Karan Kapoor, Director of Regulatory Change and Regulatory Technology at DCM Daisheng Capital, explained: “In terms of the Central Bank Digital Currency (CBDC), the Bank of England has suggested that the digital pound does not necessarily have to be built on blockchain technology and can use more centralized Technology. However, we have seen many other countries choose to use Distributed Ledger Technology (DLT) to design their digital currencies. For example, Sweden’s electronic krona is currently in the pilot phase.”

Kapoor also suggested that the widespread absorption of blockchain is not necessarily guaranteed. He said: “Whether central banks will adopt DLT/blockchain technology depends partly on the level of privacy they want to provide users and partly on the purpose of digital currency, whether it is for retail or wholesale.”

Refusing to “lie flat”, what are the advantages of blockchain 

Regardless of the recent security incidents, blockchain technology has a wide range of advantages, which is why it is considered such an important transaction solution. With the popularity of cryptocurrency, the demand for ledger transactions is much higher. 

Wirex CEO Matveyev explained: “The (decentralized) blockchain solution certainly has many advantages, such as no single point of failure and counterparty risk. What does this mean? In layman’s terms, it is a block. The contracts and rules on the chain are transparent.”

He continued, “For mainstream suppliers, they provide both opportunities and threats. If they can adjust their business models, they can also participate in the use of these platforms themselves.”

However, he pointed out that if the supplier’s model is based on charging high fees for “middleman” behaviors such as processing and fulfilling contract transactions, they will be weakened by cheaper, more transparent, and possibly faster blockchain alternatives.

The temperament is in place, and the transparency of the blockchain is higher 

One of the most important factors to consider when researching blockchain is that not all technologies or systems are created equal. Matveyev explained: “The term blockchain may mislead those who are not familiar with it because it implies that all blockchains are the same and are built with the same code, which is not the case. “

He said that like cryptocurrency, blockchain can be customized according to different levels of complexity. The vulnerabilities come from authentication and encryption, as in the case of Poly Network, because hackers manage to interact with a key contract without proper authentication. “The immutability of the hacker’s public and private keys and the quality of the code used are key areas of focus to ensure that such attacks are unsuccessful.”

How does the blockchain ensure the safety of customers?

The most powerful anti-theft asset provided by the blockchain is the traceability of its digital currency. The online leger system automatically tracks every action taken on the funds and who owns or transfers them to other places.

Matveyev said that in terms of prevention, it is this aspect that makes blockchain a popular choice among traders. “The ability to track misappropriated funds is the best way to provide preventive security,” he explained.

“Because the blockchain is decentralized, the current global and national structures and regulations may not provide the same protection. For example, the UK’s Financial Services Compensation Scheme (FSCS) protects legal accounts.” Matveyev Added.

Hackers continue to "involve" the blockchain refuses to "lay flat"

Improper “atmosphere group”, what will the future of blockchain be like? 

As financial technology moves steadily towards DeFi systems and solutions, it looks like blockchain may maintain its popularity for simple reasons, mainly because it is fast, efficient, cost-effective, and safe.

Preventive measures, such as code security audits, which provide a comprehensive analysis of the source code and reveal errors, security vulnerabilities, or violations of programming practices, will become more common. As the cat-and-mouse game between hackers and organizations continues in the global online space, security solutions will become more stringent.

Matveyev said that the decentralized system will continue to exist, and the consequences associated with it will not outweigh its advantages. “As we have seen in the stock market, zero risk does not exist, but mitigation is the best way to create a safer blockchain for everyone.”

He pointed out that supervision will also play a key role in strengthening and streamlining the blockchain system. “In 2021, we have seen national regulators from the United States, the United Kingdom, and the European Union, and China have taken more interventions in cryptocurrencies. In some respects, the blockchain is generally the same. Although this is in some This may be seen as a bad thing to some extent, but it may actually help bring blockchain payments into the mainstream.”

Matveyev added: “Banking and finance rely on stability and supervision. If we start to see a consensus on how to regulate the blockchain in 2022, we will see more mainstream participation. ETH 2 The full deployment of, and the subsequent cheaper and faster transactions in each layer or encryption economy will also be a topic worthy of attention in 2022.”

Blockchain’s ” social horror “, there are many applications on the market 

As one of the latest but most popular financial technologies, blockchain is essentially a decentralized end-to-end transaction ledger. It helps users avoid transactions and data manipulation because it automatically tracks every movement and change.

Hackers continue to "involve" the blockchain refuses to "lay flat"

Blockchain is still a very hot topic, and more and more experts, scholars and industry insiders pay close attention to the application and innovation of blockchain technology. Of course, the current blockchain technology is still under development, and we will see more disruptive changes in the future.

As the most secure and decentralized transaction system available today, blockchain is making progress, but is it really the best choice?

For a long time, blockchain technology has been hailed as the ultimate solution for solving high fees, centralized payment systems and cybercriminals, and enjoys a certain reputation in the payment solution market.

In August of this year, a lone hacker stole $600 million from the international cryptocurrency exchange Poly Network .

This incident caused people’s shock and anxiety, not only because of the scale of the “robbing”, but also the largest amount of money theft in the history of DeFi. The hacker claimed to be looking for system vulnerabilities in just “a few hours”. This feat was completed afterwards. As a seemingly “thumbs up” gesture to technical experts, the perpetrators subsequently posted a question-and-answer guide for their hacking process on the social networking site Twitter, which was only 24 hours after the incident.

Subsequently, the funds were returned, and the hacker admitted that the theft was carried out to prove a point and emphasized the loopholes in the DeFi (decentralized financial) system used by Poly Network.

Hackers continue to "involve" the blockchain refuses to "lay flat"

Are hackers also “involved”? Preference to attack DeFi  

The Poly Network theft case emphasized that the DeFi system using blockchain technology may have serious loopholes. This case is not the first DeFi to happen in 2021. Data shows that cyber crimes against blockchain entities are on the rise, and hackers also prefer to attack DeFi-related projects. for example:

  • In February 2021, Year Finance was stolen $11 million by hackers.
  • In the same month, Alpha Finance was stolen $37 million by cybercriminals.
  • In March 2021, Meerkat Finance suffered a loophole, and its account was stolen 32 million US dollars.

This shows that no system has absolute security.

In the end, this incident proved that no system in use today can be claimed to be “unhackable.” In fact, the recent series of vulnerabilities even prompted the Bank of England to state its position on digital currencies and decentralized systems.

Karan Kapoor, Director of Regulatory Change and Regulatory Technology at DCM Daisheng Capital, explained: “In terms of the Central Bank Digital Currency (CBDC), the Bank of England has suggested that the digital pound does not necessarily have to be built on blockchain technology and can use more centralized Technology. However, we have seen many other countries choose to use Distributed Ledger Technology (DLT) to design their digital currencies. For example, Sweden’s electronic krona is currently in the pilot phase.”

Kapoor also suggested that the widespread absorption of blockchain is not necessarily guaranteed. He said: “Whether central banks will adopt DLT/blockchain technology depends partly on the level of privacy they want to provide users and partly on the purpose of digital currency, whether it is for retail or wholesale.”

Refusing to “lie flat”, what are the advantages of blockchain 

Regardless of the recent security incidents, blockchain technology has a wide range of advantages, which is why it is considered such an important transaction solution. With the popularity of cryptocurrency, the demand for ledger transactions is much higher. 

Wirex CEO Matveyev explained: “The (decentralized) blockchain solution certainly has many advantages, such as no single point of failure and counterparty risk. What does this mean? In layman’s terms, it is a block. The contracts and rules on the chain are transparent.”

He continued, “For mainstream suppliers, they provide both opportunities and threats. If they can adjust their business models, they can also participate in the use of these platforms themselves.”

However, he pointed out that if the supplier’s model is based on charging high fees for “middleman” behaviors such as processing and fulfilling contract transactions, they will be weakened by cheaper, more transparent, and possibly faster blockchain alternatives.

The temperament is in place, and the transparency of the blockchain is higher 

One of the most important factors to consider when researching blockchain is that not all technologies or systems are created equal. Matveyev explained: “The term blockchain may mislead those who are not familiar with it because it implies that all blockchains are the same and are built with the same code, which is not the case. “

He said that like cryptocurrency, blockchain can be customized according to different levels of complexity. The vulnerabilities come from authentication and encryption, as in the case of Poly Network, because hackers manage to interact with a key contract without proper authentication. “The immutability of the hacker’s public and private keys and the quality of the code used are key areas of focus to ensure that such attacks are unsuccessful.”

How does the blockchain ensure the safety of customers?

The most powerful anti-theft asset provided by the blockchain is the traceability of its digital currency. The online leger system automatically tracks every action taken on the funds and who owns or transfers them to other places.

Matveyev said that in terms of prevention, it is this aspect that makes blockchain a popular choice among traders. “The ability to track misappropriated funds is the best way to provide preventive security,” he explained.

“Because the blockchain is decentralized, the current global and national structures and regulations may not provide the same protection. For example, the UK’s Financial Services Compensation Scheme (FSCS) protects legal accounts.” Matveyev Added.

Hackers continue to "involve" the blockchain refuses to "lay flat"

Improper “atmosphere group”, what will the future of blockchain be like? 

As financial technology moves steadily towards DeFi systems and solutions, it looks like blockchain may maintain its popularity for simple reasons, mainly because it is fast, efficient, cost-effective, and safe.

Preventive measures, such as code security audits, which provide a comprehensive analysis of the source code and reveal errors, security vulnerabilities, or violations of programming practices, will become more common. As the cat-and-mouse game between hackers and organizations continues in the global online space, security solutions will become more stringent.

Matveyev said that the decentralized system will continue to exist, and the consequences associated with it will not outweigh its advantages. “As we have seen in the stock market, zero risk does not exist, but mitigation is the best way to create a safer blockchain for everyone.”

He pointed out that supervision will also play a key role in strengthening and streamlining the blockchain system. “In 2021, we have seen national regulators from the United States, the United Kingdom, and the European Union, and China have taken more interventions in cryptocurrencies. In some respects, the blockchain is generally the same. Although this is in some This may be seen as a bad thing to some extent, but it may actually help bring blockchain payments into the mainstream.”

Matveyev added: “Banking and finance rely on stability and supervision. If we start to see a consensus on how to regulate the blockchain in 2022, we will see more mainstream participation. ETH 2 The full deployment of, and the subsequent cheaper and faster transactions in each layer or encryption economy will also be a topic worthy of attention in 2022.”

Blockchain’s ” social horror “, there are many applications on the market 

As one of the latest but most popular financial technologies, blockchain is essentially a decentralized end-to-end transaction ledger. It helps users avoid transactions and data manipulation because it automatically tracks every movement and change.

Hackers continue to "involve" the blockchain refuses to "lay flat"

Blockchain is still a very hot topic, and more and more experts, scholars and industry insiders pay close attention to the application and innovation of blockchain technology. Of course, the current blockchain technology is still under development, and we will see more disruptive changes in the future.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/hackers-continue-to-involve-the-blockchain-refuses-to-lay-flat/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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