Cybercriminals Heavily Exploited Centralised Parts of DeFi, Caused Losses Worth $1.3 Billion in 2021: Report

The decentralized finance (DeFi) sector still relies on centralized networks, which have become easier for cybercriminals to breach over the years. According to a report, in 2021, centralized elements of the DeFi protocol were breached by cybercriminals, worth over $1.3 billion (about Rs 9,606 crore). DeFi allows financial products to be displayed on a public blockchain network that is not regulated by a central bank or intermediary.

in a new report goodBlockchain research firm CertiK said 44 DeFi hacks were responsible for losses of $1.3 billion (about Rs 9,606 crore) last year.

The weak points in the DeFi system were those that still operated on regulated servers rather than on the blockchain network.

“Centralization is contrary to DeFi’s ethos and poses major security risks. Single points of failure can be exploited by dedicated hackers and malicious insiders alike,” the report said.

DeFi systems, most of which are built on Ethereum Blockchain aims to provide an autonomous and decentralized alternative to financial services.

DeFi The report said that this sector has received about $ 60 billion (about Rs 4,43,310 crore) till December 2021.

Recently, a Study The DeFi hack and related scams have exceeded $10 billion (about Rs 73,885 crore) in the past one year, claimed by analytics firm Immunefi.

However, the researchers also noted that the elements of crypto space As more workload shifts from servers to blockchain networks, the DeFi sector will continue to be secure.

The loss recorded in 2021 represents only 0.05 percent of the total market capitalization of crypto, down 17% from the previous year.

cryptocurrency The market rose to a capitalization of $3 trillion (approximately Rs 2,15,66,720 crore), an all-time high last year.

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