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As many as 44 hacker attacks on DeFi in 2021 were caused by centralization errors

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Until 44 hacker attacks to the DeFi sector in 2021 was caused by centralization problems. This is stated by the company CertiK Report.

DeFi hacker attacks

CertiK deals with blockchain security. According to their latest report, up to 44 hacker attacks on DeFi have been caused problems with centralization. Due to the huge growth of this sector, safety must come first.

In a report entitled State of DeFi Security 2021 is mentioned as the most common problem with centralization. This fact prepared the individual projects as a whole $ 1.3 billion.

The year 2021 was therefore more active in terms of hacker attacks, exploits and fraud than in 2020 by more than $ 500 million. This is also the reason why individual projects have reached for more thorough security. Year-on-year growth after various security projects increased by more than 1,000%.

The CertiK report further states that the auditors encountered up to 286 centralization risks. They therefore call on individual DeFi projects to work on higher decentralization.

In 2021, ETH experienced stronger competition

Looking at transaction processing in 2021, DApp and DeFi processed more than four times the number of transactions per day than the BTC network. Specifically o more than 1.28 million. The ETH network generates 64 times higher profits than BTC. This is also the reason why there are opinions that ETH may in the next ten years facilitate up to 50% of global financial transactions.

Extremely high fees as well as slow network speeds – these are the main reasons why competing platforms have gained momentum.  Binance Smart Chain, Solana and Terra. These competing blockchains will continue to press at ETH in 2022.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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