Rampant hacking Cryptocurrency insecurity DeFi is the worst hit

Keep in mind that the DeFi industry saw a total of more than 60 attacks throughout 2020, with losses totaling about $250 million, while Poly Network lost as much as twice as many assets in a single attack as it did in all of last year.

Poly Network was attacked, but also a microcosm of the entire DeFi industry ecological security issues.

According to data from the Slow Fog Technology Statistical Hacked Event Archive, in the first half of 2021, there were 78 larger security incidents across the blockchain ecosystem, involving 50 DeFi security, 2 wallet security, 3 public chain security, 6 exchange security, and 17 other security-related incidents.

Yu Jianing said that DeFi is different from the traditional trading model in that all transactions are carried out on the chain by way of automatic execution of smart contracts, and the risks are highly complex, with new types of security incidents popping up. Such as smart contract execution risk, operational security, clearing risk, prophecy machine risk and hacking risk, etc.

This also makes DeFi the hardest hit by blockchain security incidents. "In DeFi, hackers often attack through vulnerabilities in smart contracts, such as lightning credit attacks and reentry attacks, causing loss of assets."