Decentralized Finance Better known as DeFi, it may not be “decentralized” enough as attackers continue to exploit weaknesses in centralization. to steal billions of dollars in user funds by 2021, according to research from blockchain security firm CertiK.
In a new report on the state of DeFi security for 2021, CertiK researchers said “Centralization issues are one of the most common attacks” within decentralized finance. The blockchain security firm cited 44 DeFi hacks that totaled $1.3 billion in 2021, an increase of more than $500 million compared to the previous year.
“This underlines the importance of decentralization. and highlighting the fact that many projects still have work to do to achieve this goal,” CertiK added:
“Centralization is the opposite of DeFi’s concept and poses a significant security risk. Because hackers and malicious insiders can take advantage of Single points of failure.”
Research conducted by ImmuneFi revealed that the value lost due to DeFi hacks and related scams was more than $10 billion in the past year. Security targeting the DeFi project has grown exponentially.
CertiK also cited the growing popularity of Binance Smart Chain (BSC) as one of the biggest reasons for DeFi’s success between January and December 2021, with BSC’s TVL growing from $62 million to 21. billion dollar which increased to 31,000%
And as for the demand for CertiK blockchain security services, it also appears to be growing. This is because projects try to avoid becoming a victim of an attack. The company has reviewed a total of 1,737 projects in 2021.
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