Cybercrime's Exploitation Of Centralised Parts of DeFi, Resulted into Loss Worth $1.3 Billion
Cybercriminals have largely exploited the Centralised parts of DeFi and this resulted in a loss worth 1.3 Billion Dollars in 2021.
A recent Report of CertiK told that 44 DeFi hacks in the world aspect caused a loss of $1.3 Billion in the previous year.
Highlighted Facts
- 44 accounts of DeFi have been hacked which caused a loss of $1.3 billion in the previous year.
- DeFi provides an autonomous decentralized alternative for financial services.
- 0.5 percent of the total crypto cap was lost in DeFi attacks last year.
Read More: A Spammer Made 202 Million Spam Calls This Year in India
Decentralised Finance (DeFi) still has its reliance on centralised networks and breaching has now become easier for cybercriminals over the years.
The centralised element of the DeFi etiquettes was breached by cybercriminals and this resulted in a loss worth $1.3 Billion in the past year as told in a report. This platform allows the financial product to appear on the Blockchain network which is not regulated by any central bank or intermediary.
The report reveals reveal the fact based on research of Blockchain firm CertiK told that 44 DeFi hacks are truly responsible for the loss worth $1.3 billion in last year.
“Centralisation is antithetical to the ethos of DeFi and poses major security risks. Single points of failure can be exploited by dedicated hackers and malicious insiders alike,” said the report.
The system of DeFi is majority based and built on the Ethereum blockchain. The platform is aimed to provide an autonomous and decentralised alternative for financial services.
The report published from CertiK also stated that the last year DeFi bagged nearly $60 billion (INR 4,43,310 crore) by the end of the year 2021.
Recently one more report was published in which it was stated by analytics firm ImmuneFi claimed these hacks have exceeded $10 billion over the past year.
The researchers of related fields noted that elements of the Crypto space like the DeFi sector will continue to look for better and safer as more workload shifts from servers to blockchain networks.
Overall Crypto’s total capitalization of only 0.5 percent loss has been recorded in 2021.
The capitalization of the Cryptocurrency market also has increased $3trillion this year and this is the highest growth has been recorded since ever.
