DeFi Should Expect More Hacks This Year, Experts Warn

DeFi Should Expect More Hacks This Year, Experts Warn. 

In 2022, Decentralised finance or DeFi projects saw massive amounts of losses as a result of numerous exploits and hacks. Experts have warned that there may be more of these malicious attacks coming this 2023.

DeFi Losses

According to a recent 2022 report by Beosin Global Web3 Security, it was revealed that out of the 167 major security incidents that happened throughout 2022, those that were rooted in DeFi were actually the most vulnerable to hacks and exploits. 

The report claimed that DeFi projects were attacked up to 113 times, accounting for roughly 67.6% of all attacks that were reported. All in all, the report says that DeFi projects had a total of $950 million in losses, coming in second in terms of monetary losses.

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Experts’ Warning

Despite these massive losses DeFi experienced in the year 2022, blockchain security experts warn that only more exploits, hacks and attacks may be on the way this upcoming 2023.

In an “Overview of DeFi Security In 2022” report shared exclusively with Cointelegraph, managing director of blockchain security firm Beosin Tommy Deng warns that “as long as there is interest in the crypto market, the number of hackers will not decrease.”

CEO of crypto auditing firm HashEx, Dmitry Mishunin, says that despite DeFi and blockchain’s continuous growth and strengthening of security, hackers have also “gotten smarter, gained more experience, and learned how to look for bugs.”

“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.”

These experts’ claims suggest that despite the constant growth of the DeFi industry, it’s still a relatively new space which means that hackers and attackers are growing their skills in exploiting these DeFi projects at the same rate that these projects are learning to protect themselves. Until these DeFi projects learn new and better ways to protect their projects at a faster rate than malicious hackers, then this 2023 could result in bad news for many of these projects.

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