The world of decentralized finance (DeFi) is gearing up for another year filled with exploits and attacks, as new projects flood the market and hackers continue to advance their methods. In a recent report shared exclusively with Cointelegraph, executives from blockchain security and auditing firms HashEx, Beosin, and Apostro shed light on the state of DeFi security in 2022.
Tommy Deng, managing director of Beosin, acknowledged that while DeFi protocols are working to enhance their security measures, there is no foolproof system in place. He warned that as long as there is interest in the crypto market, hackers will not cease their attempts to breach vulnerabilities. Many new DeFi projects are launching without undergoing complete security testing, leaving them susceptible to exploitation.
One area of concern highlighted by the executives is the growing use of cross-chain bridges in DeFi projects. These bridges were a primary target for exploiters in 2022, resulting in the theft of $1.4 billion across six major attacks. CertiK, another blockchain security firm, also expects a continued trend of exploits, flash loans, and exit scams in the coming year, with a focus on targeting bridges.
Dmitry Mishunin, CEO of HashEx, emphasized that hackers have become more sophisticated and skilled at identifying vulnerabilities within DeFi projects. With the increasing value locked in these protocols, the industry has become an attractive target for malicious actors. Mishuin predicts that the number of hacks will only continue to rise, and attackers may expand their focus beyond DeFi to target crypto exchanges and banks offering secure storage solutions.
Despite the ominous outlook, Tim Ismiliaev, co-founder of Apostro, remains optimistic about the future of DeFi security. He believes that the space will mature over the next five years, with new best practices emerging to secure decentralized finance protocols. However, both Mishunin and Deng expressed concern that post-incident reports produced by security firms often fail to reach the intended audience of blockchain developers, who are crucial in implementing necessary security measures.
Overall, the industry anticipates a challenging year ahead, with the potential for increased attacks on DeFi projects and a continued focus on exploiting vulnerabilities in cross-chain bridges. While efforts are being made to strengthen security measures, the ever-evolving nature of crypto hacking means that constant vigilance and innovation are necessary to protect DeFi investors and users. As the industry continues to grow and mature, the hope is that new best practices will emerge to safeguard the decentralized finance space for years to come.
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