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Centralisation Of Power – Cause Of The DeFi Attacks?

  • The decentralization of finance has changed the cryptocurrency industry and also how the finance industry has worked until now.
  • Richard Ma, the CEO, and co-founder of Quantstamp, a smart contract auditing firm, said that there is a lot of emphasis on Bitcoin today.
  • Using the smart contracts on the blockchain technology has eliminated the need for trusted third parties to validate or regulate the transactions.

The decentralization of finance has changed the cryptocurrency industry and also how the finance industry has worked until now. DeFi apps, also known as Dapps, enable lending and borrowing of multiple financial services.

Some love it and see the future in it, and some hate it and are, honestly, just scared of it. Nobody had actually imagined that decentralized finance could be taken to this big level involving such big numbers, it is really just fantastic.

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Using the smart contracts on the blockchain technology has eliminated the need for trusted third parties to validate or regulate the transactions. Blockchain uses only code to make sure that the operations are valid. Ethereum has been maintaining a lead in decentralized finance, but Bitcoin is also catching up and is not that far behind now.

A smart contract platform called RSK has just recently announced a “token bridge.” The token bridge is an interoperability protocol between the Bitcoin sidechain and Ethereum. This development is said to affect the DeFi’s future significantly.

Richard Ma, the CEO, and co-founder of Quantstamp, a smart contract auditing firm, said that there is a lot of emphasis on Bitcoin today. Ma also spoke about the potential attack vectors against DeFi, and he also gave his opinion on the need and importance of a permissionless finance system.

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Talking about the attacks and why they are happening a lot nowadays. He also said that this system helps the attacker to almost completely anonymize himself since there is nothing tied to him directly, hence giving him a lot of dangerous freedom.

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Ritika Sharmahttp://www.thecoinrepublic.com
Ritika Kumari Sharma is an Economics Honors graduate from the University of Calcutta. She is completely into finance and believes that cryptocurrencies are the future. She is an enthusiast learner about the cryptocurrency and blockchain technology.

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