According to the Certik-Defi, most defi hacks had to do with centralization problems in 2021

Certik, a blockchain security and auditing company, has reported that the most common attack vector for hacks in decentralized financial protocols (Defi) had to do with centralization in 2021. This data is included in the latest report by Certik, in which the company also examines the growth of Defi in 2021 and, like other chains such as Avalanche and BSC, as alternatives to the high fees of Ethereum.

Centralization costs Defi protocols $ 1.3 billion in 2021

a new Published by certik, one Blockchain security and auditing companies showed that centralization problems in defi protocols were the most common attack vector for hackers in 2021. According to the company, $ 1.3 billion was exploited by single points of failure. Certik carried out 1,737 Smart Contract audits in 2021 and found 286 cases of discrete centralization risks. The report says:

One of the protocols that suffered from this type of weak point was bzx To phish private key using an email with a malignant macro. At that time, the attacker took control of $ 55 million from the protocol. This is part of what the company classifies as privileged vulnerability of ownership.

Certik about defi growth and multicelet tendencies

The report also recognizes the massive growth that the defi environment experienced last year. Certik states that the volume traded on decentralized stock exchanges (Dex), the total value enclosed in defi-based protocols quadrupled and the fee income from Ethereum has been shot. With regard to the growth of Ethereum, the report recognizes the following:

There is clearly an insatiable appetite for the smart contract-controlled decentralized applications that Ethereum enables. Defi, NFTS and other applications such as ENS (Ethereum Name System) all contributed to this growth.

Due to the challenges with which Ethereum was confronted with the scaling, however, a number of competitors managed to take over a third of the defi dominance from Ethereum. Certik states that Binance Smart Chain, Solana, Terra, Avalanche, Fantom and Polygon were the most popular chains that were selected as alternatives for the defi activities of the users.

Even if the Ethereum block area is traded with a surcharge, the chain reached $ 153 billion TVL. But with user migration to other chains, the decentralization debate has deepened. Solana, one of the chains that are supposed to replace Ethereum, was confronted with constant formal problems recognized from his team.

What do you think about Certik and the changes that occurred in Defi in 2021? Tell us in the comment area below.

Sergio Göschenko

sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game and entered the cryptosphere when the price increase took place in December 2017. He has a background as a computer engineer, lives in Venezuela and is affected by the cryptocurrency boom on a social level. It offers a different perspective on the crypto success and how it helps those who have no bank account and are under-supplied.

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