2021 has undoubtedly been the yr of mainstream crypto adoption as establishments lastly realized that it isn’t a fad and going to turn out to be the alternate monetary market. Nonetheless, with the surge in curiosity and adoption, the variety of safety breaches and hacks additionally reached new highs. In keeping with the newest report from Slowmist, crypto hackers managed to get their palms on a whopping $9.8 billion {dollars} stolen in numerous breaches and ransomware assaults.
The Slowmist yearly report additionally highlighted that almost all of the crypto hacks got here from one particualr business i.e decentralized finance (defi). Almost 73% of all stolen cash from the crypto hacks got here from numerous defi protocols amounting to almost $7 billion.
The yearly report famous a complete of 231 incidents of hacks and safety breaches within the crypto ecosystem, and out of those whole 231 incidents, 171 have been reported from numerous defi protocols. Whereas the Defi ecosystem has grown to turn out to be one of the crucial outstanding use circumstances of the crypto ecosystem, it is usually one of the crucial exploited ones. There hasn’t been a single week over the previous yr when there wasn’t a safety breach of any sort.
Can the crypto ecosystem enhance safety in opposition to hacks?
The Defi sector has undoubtedly been the most important safety concern because of the anonymity issue, nevertheless, it is usually vital to notice that, a number of the largest heists in crypto was finally returned because of the decentralized nature of the blockchain the place it turned close to unattainable for the hacker to launder cash out of the techniques. The prime instance of that is the most important Defi hack within the type of PolyNetwork the place the hackers managed to get their palms on property price greater than $600 million.
The protocol alerted all exchanges and stablecoin issuers in regards to the hacking tackle which resulted within the blocking of any transactions from that account and later all of the stablecoins have been additionally frozen. In consequence, the hacker was left with no different possibility however to return the cash and get a white hack bounty as an alternative.